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SUCCESSION/INHERITANCE TAX in Spain and UK + the Importance of Having a Will | Blacktower
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Oct 29, 2024
DO YOU HAVE A WILL FOR YOUR ASSETS IN SPAIN AND ALSO FOR YOUR HOME COUNTRY? Inheritance and Succession Tax can be very different here from what you may be used to, so it's important to have everything in place. Here's more with Christina Brady from @blacktowerfinancialmanagem7049 For any enquiries contact info@blacktowerfm FAO Christina or get in touch through the website: www.blacktowerfm.com Be sure to Like and Subscribe to our YouTube channel for more insights from BayRadio Spain, and follow us on Social Media: Website: http://www.bayradio.fm/ Facebook: https://www.facebook.com/BayRadioInSpain Instagram: https://www.instagram.com/bayradiospain/
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we specialize in protecting preserving
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and growing your wealth Black Tower
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financial management the team you want
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by your side visit blacktowerfm.com
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Tuesday Morning where I have Christina
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on from Black Tower financial management
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something you wanted to mention and uh
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definitely worth pointing out about
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making wills and succession tax and the
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like this especially in Spain where it's
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uh maybe very different and it varies
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region by region for some things isn't
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it it does and I've just read an article
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that was in the Press today and it said
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half of Britain's have not written a
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will and it's important to make one no
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matter how much you have and I can talk
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because I haven't updated mine for oh
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numerous years and I'm a financial
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advisor it's quite easy to put something
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off but however
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we are in an environment at the moment
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where unexpected unexplained deaths are
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at a peak and I'm having to deal with
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quite a few at the moment and I've had a
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few clients and sadly they've died and
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no one knows where their will is if
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they've got a will who their
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beneficiaries are who their solicitors
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are and it is it is is worrying really
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because they've got money where does it
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go you don't want it to go to the
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government so you know it is in your
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best interest to make a will and I think
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if you are British you should have a UK
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will to cover your UK and worldwide
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assets exclude in Spain and a Spanish
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will to cover your Spanish assets
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because in Spain
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inheritance is a lot different from in
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the UK in the UK spouse to spouse is
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free okay and it's the estate that pays
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the inheritance tax in Spain in certain
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regions and one of those being the
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Valencia region spouse to spouse is not
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free so if one of you die the spouse
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could be subject to inheritance tax
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okay and it's the beneficiary in Spain
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that has or the beneficiary wherever
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they are if they inherit anything from
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Spain has to pay the in tax before they
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can inherit and it's called succession
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tax
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um and everything you have in Spain is
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subject to that tax and if your
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beneficiaries in Spain then all your
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worldwide assets are subject to Spanish
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inheritance tax for that person because
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they live in Spain so so uh I die and my
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husband inherits my whatever I have if I
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have stuff in the UK If I have stuff in
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Spain or I don't know let's say I had
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stuff in America which I don't or
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stealthy in Switzerland I wish then he
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would have to pay Spanish inheritance
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tax on all of that my estate is also
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subject to UK inheritance status because
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I am a UK domicile you can lose your
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residencia but you cannot lose your
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domiciles usually on the place of birth
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of your father and so in the UK you have
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quite a spouse is supposed to be free so
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he's fine
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um but in Spain he would not so you need
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to have a will and there are ways to
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mitigate inheritance tax in Spain and
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that's why at the moment we are so busy
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because if you do an investment uh with
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someone like Black Tower we do it's what
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in called a tax compliant investment
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which the Spanish authorities have
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approved
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and it means that that investment
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although it's within the EU and it
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doesn't need to report it on the Modelo
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720 because the company has a
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representative in Spain it is outside
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Spain so most of them are in Dublin or
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Luxembourg therefore and their life
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Assurance policies so if you don't enjoy
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it names husband and wife or Partners on
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first death there is no enforced
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encashment so no taxable event okay it
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carries on in the survivor's name
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because it's life Assurance it's got a
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small amount of Life assurance and that
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is the key to this and especially if you
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live in Spain and you're not married in
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certain regions inheritance tax if you
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get it from a partner or if you get
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inheritance for someone who isn't
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related to you can go as high as 80
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percent
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so you know if you inherit a hundred
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thousand you may only see twenty
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thousand of it so there are ways to get
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around there and some people coming to
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me they go oh but I've got a Spanish
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wheel and it states UK law of succession
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so therefore I don't have to space
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banish inheritance tax
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law of succession is nothing to do with
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inheritance tax what it means is under
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Spanish law if you die your estate has
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to go to your children first before your
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spouse right now we've made a concession
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the EU has said that every country has
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to allow an individual to choose their
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National rules above
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a country they live in so for Brits we
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can choose to have UK law of succession
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which means that children do not pay
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preference over your spouse and you can
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leave it to your spouse first and then
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your children but you are still subject
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to inheritance tax in Spain it doesn't
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get rid of that liability it just means
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you can choose who your beneficiaries
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are and that is key as well because
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otherwise if you don't your children get
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preference over your spouse and in some
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instances can get up to two-thirds of
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your estate and that means that your
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spouse basically gets nothing so it's
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really really key and if you do have a
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will please some let someone know
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uh you know where you keep all your
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information your solicitor or your next
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of kin or someone and on there put down
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the basics like you know where your bank
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account is where your Investments are
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who your solicitor is have you got a
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will you know if possible keep a copy of
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your will so God forbid anything happens
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to you someone can find that easily in
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Spain you only have six months in which
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to sort it all out after that you start
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to incur fines and you know it becomes a
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nightmare so please be very very careful
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unfortunately this is happening more and
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more at the moment and it's not just the
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elderly you know I've got people who've
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died in their early 60s mid 60s early
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70s
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um and at the moment I it is I've got
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more than I've ever had in the 14 years
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I've been doing this so and as I said
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there's one lady who sadly died her
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husband died a little while ago they
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have no children
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um no relatives that we can find can't
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even find a copy of the will so what do
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we do we don't know who to contact we've
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got no one to contact so you know I've
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advised the investment companies Etc but
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we're stumped you know what do you know
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we don't want that money to be lost and
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go to governments we wanted to go to the
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people hopefully that you wanted it to
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go to yeah
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um so please be very very careful also
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you know you've got to save enough money
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for when you get elderly for care but be
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realistic don't make yourself suffer and
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go without what you want and go without
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holidays just to have that amount of
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money live your life and when people
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come into me sometimes they come in they
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say oh we want to do this investment and
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they'll go away doing maybe only a half
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of what they expected because we've gone
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through it and they want to go and see
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this part of the world they want a new
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car they want this you know life Is For
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Living when you die you don't want to
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regret your life so whilst you've got to
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be careful you've got to make sure
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you've got enough to live on enough to
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support yourself enough to give yourself
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self for when you get older you've got
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to enjoy your life yes and I think I
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like the phrase about you know where
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people are you know watching what they
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eat all the time and say well there
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would have been people that waved away
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the sweet trolley on the Titanic you
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know you have to deny yourself
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everything you've got to put things into
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perspective and you've got to realize
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you know it's and some I did I do have a
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couple of people and not anymore but
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came to me and said oh I've got this
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money and they wouldn't spend it because
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they were saving it for their
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grandchildren and after you have a chat
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with them you know what are their
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grandchildren going to do if it's a lot
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of money go and buy themselves a nice
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sports car when the person in one person
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involved hadn't done anything with their
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life what is the point you know you've
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got you've made your own way in life
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you've made yourself a success you've
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got yourself money okay it's nice to be
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able to give some to your grandchildren
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and your children but not the expense of
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your own life and I know I sound like uh
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oh that's all well and good but it's
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true it's your life you get one chance
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at life you know make it work for you
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and you know some people say oh when I
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get older I'll do this when I get older
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I'll do that however sometimes ill
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health can come when you don't expect it
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it can come in your 40s your 50s your
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early 60s so while you are fit if you
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can afford it and you want to do stuff
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do it yeah but as I said please make
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sure that you are prepared you know
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we're short of one thing in life and
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that is that we're all gonna die okay
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whether we like it or not we're all
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gonna die so you and especially as you
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get older
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um it's such when you get your 70s and
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80s it's horrible things say even in
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your 50s and 60s you haven't got that
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much longer to go in in respect to what
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you've already lived so maybe put things
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in place and if you are in your 70s and
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80s I know this sounds horrible but put
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in place a power of attorney yes that's
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what I was going to mention yeah
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especially if you're not here all the
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time especially as well yes it's really
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key just in case you're becoming
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incapacitated you know you may have a
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stroke you may get a blood clot which
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causes a stroke you make it out some as
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you make it he says you know if
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something could happen and without a
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power of attorney your accounts are
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frozen you can't get money to pay for
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your care and so obviously you've got to
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pick someone you trust so usually people
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trick pick a solicitor or a lawyer or
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their brother or their sister or their
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you know their oldest child someone they
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can trust and some people and also you
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can make not only will some people make
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living wills
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and what that means is I had a couple
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that did this they had a living will and
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in the world it stated if anything
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happened to them and they were left in a
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vegetable you know State I don't hate to
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say that that they wouldn't prolong
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their care they would let them die with
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dignity so that you know you need to
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talk to your solicitor about that as
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well about what you can do in those sort
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of circumstances and obviously it's if
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you trust you know some doctors won't
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just do kill you obviously but there are
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certain things to make you have an
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easier end to your life so you know
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that's another thing to to consider but
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please make sure that your paperwork is
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somewhere where someone can find it even
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if it's just a little business card with
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bits written on the back like solicitors
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number
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Etc so someone can find that you know if
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you see so they know what to do
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um you know you work very very hard for
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your money as I said and also there are
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ways to mitigate inheritance tax in
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Spain and that's what people need to
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understand different regions have
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different rules if you're in the
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Valencia region I'm afraid at the moment
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we've got one of the worst we did used
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to have one of the best but now we've
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got one of the worst so you need to plan
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for it and black towel can help you with
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that honestly someone came in the other
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day she said she'd been talking to
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people as you do in a restaurant or a
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bar and they made this couple really
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Panic about inherited tax they were
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giving them always nightmares there are
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scenarios so they came in to see me I
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said well you've got this in a compliant
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wrapper you've got this and this I said
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the maximum your inheritance tax bill is
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going to be if anything because you've
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got expenses deduct is about 5 000 Euros
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and they were so happy I said actually
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in reality it won't be more than about 2
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000 and the person in the pub had made
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them believe or whatever bar or
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restaurant that they were going to lose
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everything you know the spouse that was
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left behind was going to be destitute
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so please don't listen to gossip come
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and speak to us we can help you with
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ways to mitigate your inheritance tax
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whether you're married whether you're
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living together whether you're a mom and
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a son or a mom and a daughter you know
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if you're resident in Spain we can help
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you with that and that's what we're here
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to do we're here to give you peace of
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mind as well in regards to taxes and you
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know and finances as well as giving you
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investment advice yeah and as far as the
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world goes especially make sure people
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know where it is if you do have one but
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um worth update if you've got property
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especially it's worth keeping it up to
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date yeah
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[Music]
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yeah the difference is in Spain is when
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you get to a will it's on a central
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registry and it's kept in Madrid so it's
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not like UK you can do a wheel put it in
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your drawer and no one knows about it
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when you do one it is registered in
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Madrid so therefore it can be found okay
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well that's anything that's come up
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worth getting in touch if you have any
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questions for Christina and lots of ways
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to get in touch what's the email address
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the email the best one is info Black
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Tower FM that stands for financial
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management.com and put Bay radio
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attention Christina and it will come
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through to me someone will get in touch
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with you you can go onto the bay radio
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website you can go to advertisers you
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can click on blacked out take you
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through to our website just fill in a
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contact form again put Bay radio or
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Christina so they know where it's come
12:54
from remember we don't just cover Spain
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we cover France Germany most of Europe
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UK North America South America Australia
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so if you have any questions in those
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countries again about anything we've
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spoken about including inheritance tax
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you get in touch or you can call the
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office which is
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96505-8212 you know we're here to help
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you so please don't hesitate if you need
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anything if you need any advice please
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get in touch thanks ever so much for
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your time it's a useful thank you very
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much as always listening and exceeding
13:26
expectations for over 31 years Black
13:30
Tower financial management the team you
13:32
want by your side visit blacktowerfm.com
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