Why home equity loans can help us
The latest data released by the General Council of Notaries tells us that in 2017 a total of 42,987 inheritances were rejected, which means about 117 legacies a day . The high costs derived from the acceptance of an inheritance make it inaccessible to many Spaniards.
The loans with mortgage guarantee can be a solution to face the payment of the Succession Tax, especially if we are going to inherit a property. Using the inherited home as collateral, we can obtain a loan of a percentage of its value that will help us pay the expenses of the inheritance.
It is important to know that the loans with mortgage guarantee allow us to inhabit and rent the property that we use as a credit guarantee . However, we must bear in mind that the defaults of the monthly installments of the loan could mean that the house is seized and that we lose the house.
Is it possible to apply for personal loans to pay the inheritance?
Yes. We can get online loans for this purpose. These are financing products with which we can obtain amounts from 3,000 euros and up to 60,000 euros to be returned in a period ranging between 12 months and 10 years, depending on the amount we request.
Its cost is around 8% APR . Personal loans are reimbursed in monthly installments of greater or lesser amounts as agreed in the contract and do not usually require the endorsement of a third party or the contribution of a good as a guarantee of payment, since the guarantee will be personal.
When we ask for this type of loans, the entity will ask us to give them information about us and about our financial situation . This information will be used to evaluate our financial profile and assess whether they accept us as borrowers.
What is the cost of accepting an inheritance
You have to pay the fees of the notaries and lawyers, as well as the Property Registry and the taxes proper to the receipt of the property of a deceased. Also, the price will change depending on the autonomous community in which we live. In summary, the costs are:
It is always advisable to consult a specialized lawyer . The fees will be agreed upon before hiring and will depend on the rate that this applies.
In addition, we have the cost of the notary , who will perform the deed of the inheritance contract. These fees are set by Spanish law and are the same in any region of Spain.
However, the notary could charge us other payments , such as the liquidation of taxes, for which the fees will be higher than the initial ones.
Another additional expense is the payment of inheritance tax , which is set according to the autonomous community. Likewise, it will be necessary to pay a municipal capital gain.
Setting a figure for the exact cost of inheriting is an impossible task, given that this price will vary in each particular case and depends on a great multitude of aspects . Therefore, it is advisable to go to a specialized lawyer. In this way, we can ask for the exact amount when requesting a loan.
What happens with the loans of the deceased?
It is essential to know the payments that the deceased had pending if he had any type of bank financing in force prior to his death. The heirs not only receive the goods that the deceased had, since they will also have to assume the obligations that they left pending.
In addition, there is an option that we can take in case we can not afford the debts left by the deceased: the benefit of inventory . This alternative allows us to obtain the goods once we have settled these debts, giving us a margin of time for the acceptance of the inheritance.
In addition, the loan holder could have taken out life insurance when signing the loan contract. Therefore, it is important to check the existence of this insurance and contact the insurer to know if the policy could cover the expenses that remain of the loan fast .
How long is the acceptance of an inheritance?
The civil code does not dictate a maximum period of time to accept the inheritance by the heirs. Despite this, based on the legal practice of this procedure, it has been assumed that the maximum period to decide whether to accept the inheritance is 30 years.
Although we do not know exactly how much time we have to accept an inheritance, we do know that during the first nine days after death they will not be able to contact us or force us to make any decision.
How to manage the finances of a deceased person
When we must take the reins of the different financial products of the deceased we can find that we do not know exactly how to act, what procedures we must carry out or what documents we must deliver and in what term.
That is why from Diggory Venn we have created a guide that we can download completely free of charge and where we will find the steps to take with banks in these situations:
FREE guide! A relative dies: how to manage your accounts
With this free guide developed by Diggory Venn you can discover the direction you have to take to start the process of a succession in case of death. This guide is intended to provide basic information about:
- The first legal steps we must take after the death of a relative
- How to plan the moment in advance
- An approximation to the expense that we will have to assume by accepting an inheritance
Download now your free guide and solve all your doubts!
View and download guide
If we want to access this tool, we will only have to fill in the box that appears below with our email address. In a few minutes we can find in the guide in our mailbox.
About this page
For what purpose is this page: here we can find information of interest related to the finances of a deceased relative, from the costs of inheritance and the steps to follow to recover the financial products that he had contracted.
Source: the information regarding the acceptance of inheritances has been obtained from different sources of information such as newsletters and the website of the General Council of Notaries , among other reference portals in the matter.
Methodology: to obtain the information, personal interviews and online research have been carried out.
About Diggory Venn: we are an online comparator where we offer information of interest to our users about the different types of financial products to which they can go according to their economic needs.
Notice: the services we offer are totally free for the user. Diggory Venn derives its revenue from advertising and its featured products.
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