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Trust funds

Posted: Tue Jun 3, 2025 8:55pm

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Jessy

Posts: 69

18 helpful points

Location: Playa Flamenca

Joined: 8 Nov 2020

Hi. Can anyone give any advice on changing a Spanish will to a Trust Fund. Anyone who has done this and what are the benefits and/ or pitfalls are.

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Posted: Wed Jun 4, 2025 11:51am

Thy Will Be Done

Helpful member

Posts: 109

78 helpful points

Location: La Marina

Joined: 30 Dec 2023

Posted: Wed Jun 4, 2025 11:51am

Hi Jessy,

Trusts are not recognised in Spain and do not exist as such.

It is possible though to set up a Trust in the UK and then leave a legacy of the entire Spanish estate under an EU succession Clause 650/2012 declaring that the Law of England and Wales govern the distribution of the estate, and leave the estate to the Trustees with a memorandum of wishes stating that they should then add the funds they receive into the Trust for redistribution to the beneficiaries, however, the inheritance tax in Spain on the gift would then be around 34% in the Valancian region, plus you would be looking at £595 to set the Trust up in the UK ready to receive the donation and the Trustees would need to set up a Trust account (Metro Bank is best) to receive and manage the funds going forwards.

If you are considering setting a Trust now that you wish to populate during your life for thebeneficiaries then the Trust can be created and set up now as above and you would then need to set up the Trust bank account with yourself and up to 3 other Trustees managing the account and distributing the funds to at least 2 beneficiaries so that it will be considered a discretionary Trust.

If you would like a face-to-face appointment with me in our Benijofar office to discuss this, I am free this week tomorrow at 11:15 or 2.15

Would either suit?

If so, just give our reception team a call on 865 756 058 and they will book you in, or alternatively they can arrange another time next week that may be more suitable.

I look forward to maybe speaking with you soon.

Kind regards

Paul

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