Inheritance management: Risks of joint accounts and estate debts

Legal and tax experts warn of significant risks associated with managing finances and assets immediately following a death. A primary concern involves the handling of joint bank accounts. While co-holders may have the authority to operate the account, withdrawing funds belonging to the deceased can be legally interpreted as a tacit acceptance of the inheritance. This determination, supported by rulings from the Central Economic-Administrative Tribunal (TEAC), can trigger tax obligations and legal responsibilities even without a formal signed acceptance.

Lawyer Elisa T. Cardona highlights several critical errors during the inheritance process. Beyond the risks of withdrawing money, families often face issues by delaying tax filings. The general deadline for inheritance tax is six months from the date of death, and failure to meet this or request an extension can result in surcharges and interest.

Other common pitfalls include rushing to sell or distribute assets before understanding the full scope of the estate's debts and obligations. Such haste can lead to personal liability for the deceased's debts. Additionally, disagreements between heirs regarding the sale of property can freeze assets for years, leading to ongoing maintenance costs and legal complications.