Inheriting a mortgaged home in Spain: these are the options

Debts are also inherited. And one of the most common debts that we find in an inheritance are mortgages. When Inheriting a mortgaged home in Spain, the heir will have to pay the taxes involved in the inherited home, mainly the inheritance tax and the municipal capital gains tax. And, in addition, add the monthly payment of the loan, if the home is mortgaged.

In inheritances, goods, rights and debts are received. But this does not mean that the successor must necessarily accept the inheritance. It is possible to reject it or, something more unknown among the heirs, to accept it for the benefit of inventory.

Discover below the different options available to heirs who receive a home on which a mortgage falls.

Life insurance

It is increasingly common for us to find life insurance linked to mortgages. This is nothing more than an insurance whose beneficiary is the bank in which the mortgage loan is contracted and that, in the event of the death of the owner of said mortgage, the bank receives a certain amount destined to amortize the mortgage. In this way, the heir will not have to face the payment of the mortgage, since it will already be amortized.

There is life insurance not linked to mortgages. Here, the beneficiary receives a certain amount that can decide whether or not to use it to pay the remainder of the loan.

In any case, the existence of such insurance can be found in the Single Registry of Life Insurance, providing the literal Death Certificate. In practice, the Life Insurance Certificate is always requested along with the Acts of Last Will, which informs us if the deceased left a will, and where appropriate which is the last one granted, which is the one that is valid.