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.

Recommended products

This is a range of plans aimed at optimum management of savings, taking into account the retirement time-frame horizon.

This is a range of plans in which fixed and variable income is combined to offer you the best combination of profitability and risk.

This is a range in which you invest in plans linked to the stock market to take advantage of the potential return when you are still many years away from retirement.

This is a range of plans in which you invest in money markets and fixed income to collect benefits when you are only a few years away from retirement.

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.

Frequently asked questions

VIDACAIXA S.A. DE SEGUROS Y REASEGUROS, like all other insurance and financial institutions, is required to have an up-to-date copy of the current identification documents of customers to comply with the provisions of Law 10/2010 on the Prevention of Money Laundering and Financing of Terrorism.

The insurance institution must have the required documentation before 30 April 2015. If this is not the case, the products that have been taken out with our company will be blocked.

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In the case of retirement:

When you retire, you will have to decide how and when you want to collect on your plan by contacting your branch of "la Caixa".

If you do not have entitlement to retirement (due to the fact that you have never paid social security contributions, etc.), the contingency will be deemed to have occurred after the ordinary retirement age in the General Social Security System (65 years), at the time when the participant does not work or has ceased working and is not contributing towards the retirement contingency in any social security system. However, the benefit may be paid in advance as from:

  • age 60
  • age 45, if the policy holder is disabled

In the case of disability:

The plan may take effect in the event of total and permanent disability for the usual occupation, or absolute and permanent for any type of work, or severe disability.

In the case of death:

In the event of death, both in the period in which the contributions are made (participant) and in the period in which benefits are received (beneficiary).

In the case of serious illness:

When it is accredited with a medical certificate from the Social Security or an approved body:

a) any physical or mental illness that temporarily incapacitates the patient for a continuous period of at least 3 months and that requires a major surgical intervention in or treatment at a hospital.

b) any physical or psychological illness or injury with permanent consequences that partially limits or totally prevents the usual occupation or activity, whether or not assistance is required from other people.

In the case of long-term unemployment:

When the participant is legally unemployed (not voluntary), provided that he or she is registered with the National Employment Institute (INEM) or the competent body and does not receive contributory benefits.

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In the event of death, either during the period in which the contributions are made or in which an annuity is already being received, the accumulated balance will be paid to the spouse, children or any other person who has been named by the policy holder.

As a capital sum:

All accrued consolidated rights are paid in the form of a one-off capital sum.

As a financial income:

This consists of an income, the amount and frequency of which (monthly, quarterly, half-yearly) is decided by the customer and which is paid until the accumulated balance is exhausted. The balance outstanding or part of it may be paid at any time, in which case the subsequent annuities will not be paid until the balance advanced has been offset.

As a capital sum and financial income (mixed):

One part is collected in the form of capital and the other part in the form of financial income.

As an assured income or as an insurance:

It is possible to receive an annuity for life, for one or two lives, and with or without life insurance. Furthermore, if you wish, you can choose to take out an annuity for a certain period of time, but without capital on death.

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A pension plan is a product that allows you to save in a convenient way so that you can have a capital sum or an income at the time of retirement or in the event of invalidity and in the event of death, so that your beneficiaries can receive it.

But also, at the moment, pension plans are the product that allows you to obtain the maximum tax saving in your income tax return.

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Maximum annual contribution:

The maximum annual contribution you can make is €8,000.00.

This limit includes contributions to all pension plans, insured benefit plans, company benefit plans, certain Mutual Benefit Societies and private insurances that exclusively cover the risk of severe dependency or major dependency, and also includes company contributions.

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