How are the assets of an inheritance valued?

Assets in an inheritance can be very varied and numerous; however, all of them must be valued at their real cost. Before determining how the assets of an inheritance are valued, we show you which are the most common:

• Bank balances and financial assets. Among these we can highlight: regular bank accounts, shares, savings plans, etc.
• Real estate (houses, industrial warehouses, premises, etc.).
• Life insurance. It is possible that the deceased had taken out a life insurance policy before passing away, so it would be necessary to know its conditions and the beneficiaries.
• Household goods. These are the personal items that belonged to the deceased (jewellery, keepsakes, documents, etc.).
• All kinds of vehicles.
• Debts and expenses due to contracts or subscriptions.

To check how the assets of an inheritance are valued, we continue with the classification made previously.

As for money and securities, this is done by certificates of balances and securities issued by the bank and which must be dated as of the date of the deceased's death.

Vehicles are valued using value tables published annually by the Tax Agency.

And real estate must be valued at the real value, which must always be at least the fiscal value that the Tax Agency applies to them. This fiscal minimum for valuing assets is called the reference value and is the minimum for which a property can be taxed. The valuation of real estate in an inheritance can be raised above this fiscal minimum value up to its real value.

It is very important if an inherited property is to be sold, to value the property in the inheritance deed at its real value and not at the minimum reference value, because this way less tax will be paid at the time of sale. At JLA Notarios we will always take the fiscal aspect into account in inheritances, to achieve for our clients the tax savings allowed by law.

If one of the inherited assets in an inheritance is the deceased's main residence, a 3% of the value of the main residence must be added as household effects, according to the rules established by the Tax Agency.

The Civil Code does not clearly establish the exact moment at which the assets of an inheritance must be valued. As a reference notary office in Barcelona and based on the experience gained over the years, we have analysed a series of situations in which the assets can be valued.

• Death of the deceased: Many jurists and Notaries argue that the valuation of the assets should be carried out at the very moment the deceased passes away.
• Partition: Another sector, however, argues that the valuation of the assets must be carried out at the time of the partition of the inheritance. Otherwise, distortions and unfair valuations may occur that could harm the parties.