How can I leave part of my savings to my family?
Savings achieved over the years can be used to provide added peace of mind for the family. There are ways to leave part of your savings to your family, whether you are a pension plan holder or you opt for an annuity.
How can you inherit a pension plan?
In the event of death, the funds from a pension plan may be redeemed by the heirs. There are two types of beneficiaries:
- Specifically named: The pension plan holder specifies who should inherit the pension plan and also sets the proportion, where necessary. Also those mentioned in the will are valid.
- Not named: The rules of the pension plan itself may determine who the beneficiaries are, which usually coincides with the legal heirs (children, spouse). In the event of inconsistencies between the beneficiaries of the pension plan and those of the will, the document with the most recent date is used.
How can an annuity be inherited?
A life annuity can be inherited in a number of ways. Firstly, there is the possibility of there being two plan holders. In this case, the monthly income will be paid for as long as one of them is alive and it is assumed that the income is divided equally (50% for each one), with the appropriate deduction being applied to each holder. It is also possible to nominate an heir in the event of death, which must be reflected in the contract. In this case there are two methods: A single payment of the entire capital sum, usually a percentage of the premium paid and Income or a percentage of it.
How does inheriting a pension plan or annuity affect tax?
- Pension plan: The beneficiary is taxed on the inheritance of a pension plan in personal income tax as income from work. In other words, if the total amount is paid, the tax base may be increased until the maximum marginal rate of 45% is applied (it may reach 48% depending on the Autonomous Community in which you live). In this case, there is no inheritance or gift tax.
- Life annuity: In the event of the death of one of the holders, the other holder must pay Inheritance and Gift Tax, and will continue to receive the full amount of the income without any withholding of half of the income. The death capital of the holders, if it has been contracted, is paid to the beneficiaries once the last of the holders has died.
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In addition to supplementing your income, your beneficiaries will receive 100% of the capital that has been invested, plus an extra 1% up to a maximum of 500 euros in the event of death.
It has an extra contribution to your income, higher than in the previous model. The return is based on interest payments from the debt issuer.
Achieves a higher return for your income than in the previous two categories with a portfolio that invests in fixed and variable income and that develops over the years to obtain higher returns. Beneficiaries will not have fixed capital in this model in the event of death.
The amount of the monthly income is higher in this model because the capital sum for death decreases over the years.
Higher monthly income because the capital sum for death also decreases over the years and because it is linked to the value of portfolios. It invests mainly in fixed-income securities and develops over the years to obtain higher returns.
You obtain the highest monthly income of all categories but you renounce the capital sum for death and the refund of savings.
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