Buy in son's names???

Hello I'm in the process of purchasing in Quesada Costa Blanca. My wife and I intend to move there permanently.I was advised by the agent that Purchasing in my two sons names would be the thing to do as they are both in their 20's. I am now  told by my solicitor NOT to have my two sons on the deeds at all as they would be encumbered with taxes etc. I would also need power of attourney for bank,signing deeds etc. If one of my sons marries a "bad un" she would be able to claim half his share and we may have to sell to pay her. If one has the missfortune to go bankrupt again this will mean his share must be found or again we must sell. If one dies (god forbid) we may have to pay tax to get the share back,If the tax authorities look into funding of their share and find it was financed by me then it can be considered a gift from me and tax would be required, it goes on and on. I don't know what to do now. The developers state that if I want to take my sons off the bill of sale we would have to start the buying process all over again. Any advice would be most welcome as I'm now very confused.

Hi Lolaron,

Don't you just love it when Agents think they know it all. We too looked at all angles of what to do about ownership and we thought it a great idea to put ours in our children's names. However when I aked our solicitor (over here) about it, he said more or less the same thing, you just don't know what could happen, he said about marrying a "bad un" turn into a compulsive gambler or alcholic etc..... all sorts could happen that you just don't think about. So we didn't do it. They'll just have to pay the inheritance tax in the end I'm afraid, they'll get you one way or another. Hope you get things sorted out. That's just my opinion but maybe there are others out there that might have different answers for you.  As for changing name, I can see that may delay slightly but can't see it being too much of a hassle. People do it all the time over here, ok it delays the purchase but can be done. The developers are probably just trying to push you for the money. Speak to your solicitor and ask him how long it will take to change names. Don't worry too much about it, you do what you feel is right. They won't want to lose the sale so hang on in there. Don't be pressured into doing anyhthing. The developers were pushing us for completion and there were certain things I wanted resolved and they just have to wait. So I stuck to my guns and sorted them out. Don't feel you are being held to ransom because you're not. But, as I say check with your solicitor for advice.

Hi Candyfloss thanks for the advice, I managed to contact the developers this morning and he was very matter of fact about it. I stated that I am not going forward on this untill its changed into my wife and my names, no buts. He changed his attitude very smartly and said yes this can be done very easily. We send all monies back to your bank in Spain except the 3k deposite. We then cancel the original sale as null and void. We draw (same day) the money back under a new sales contract in you and spouces name, yes we can do this now. What a bloody turnaround. Any how January 26-29th looks still on for completion. Many thanks again Ron

ps I can now cancel my appointment for power of atourney etc.

Hi Ron,

So glad you can sort it out. I didn't think he would risk losing a sale. I know it's a bit hairy when they try ultimatums but I deal with them over here and it's surprising. They throw their toys out of the pram and demand deadlines but if there are things that need sorting out they usually back down. As I said, as long as they are kept informed of what is happening they are normally pretty good. They know there are other properties you could buy so stick to your guns. Hope the completion goes to plan. You will be soooooooooooooooo happy. We completed last January (9 months late) but it is all worth it in the end. Can't wait to get over next week. Good luck and keep us informed of your progress. But above all ENJOY.

tinto,

I know what you're saying and we almost did it. But you never know what could happen in the future. It's not the family we have to worry about it's other aspects that could come in from outside the family. Not nice but worth thinking about. Way of the world I suppose. I never gave it a second thought but when someone points out the pitfalls guess we have to think seriously about it.

You pay the taxman 40% in death duties or gamble that your children make the right decision with partners. Worst scenario they pick a sponger and they take 50% (unlikely). To me there is only one decision although both my children are happily married which certainly made the decision simple.

Yes it's all confusing!!  each solicitor gives different advice. I will be buying in Quesada, near Torrevieja under the province of Valencia. As you know the inheritance tax changed recently meaning if your resident and spouce dies almost no tax would be required from surviving spouce, I think its in the region of 98% relief. When second spouce dies the property if left to non residents the first 15k euros is allowed for ie each kin beneficiaries, in my case this would be a total of 30k euros off property value. A sliding scale is then introdced which at its peak is 40% but the vaue has to be in the region of half a million or so to attract that tax (this is all the info I have reaped since posting) of course it varies from area to area but it's well noted that Spannish tax laws are antiquated and the european courts have already changed the tax laws on non residence income tax to make everyone the same. I think (hope) more changes are on the horizon. The other option is to leave it to them in stages ie first death leaves three ways, their tax would be way down the scale on first death, there is of course the option to sell prior to dying but would need a crystal ball to follow that line. At the end of the day the blunt truth is I'll be dead so will I worry ?? plus I wish someone left me a property I have only to find the tax on, the other thing of course is they do not want any ties or tax liabilites in spain in case future legislation in uk penalises them tax wise. All in all I want peace of mind, I love my daughter in law to bits but you never, never know. I know my sons but I dont know the second sons wife because he has'nt met her yet. 

lolaron