The lady in question is ready to sell her Spanish house and liquidate everything she has in Spain in order to move back to the UK. The house is jointly owned with her late husband, however, due to an unclear land registry issue, the value of the house allegedly cannot be ascertained in order to calculate the inheritance tax due on all of the Spanish assets, including fairly large amounts in the Spanish bank.
Because the tax has not been ascertained, the Spanish bank has frozen every account that my client has, in full. She has no access to any money other than her small monthly pension that she has had to divert from being paid into her Spanish account to her UK bank account. The bank, and the law, doesn’t care that she is now unable to pay utility bills, communication bills etc. Whatever the minutiae of the breaches of the law, I find the entire position my client finds herself in quite immoral.
Thankfully, I am in the process of releasing the cash that she invested with us all those years ago to her UK bank so that she can get on with her life and breathe easily again. By chance, had she not followed our recommendation, this cash could also have been frozen in its entirety.
When investing, most people are concerned with the return they will get on their money, but the bigger picture for us as advisers is the way the investment is packaged so that problems can be avoided when inevitable life circumstances occur – and the above story is a perfect example. So, if you do have large amounts of cash located in Spain, think about my client’s story, then give me a call to ask what we might suggest based on your circumstances.
This communication is for informational purposes only and is not intended to constitute, and should not be construed as, investment advice, investment recommendations or investment research. You should seek advice from a professional adviser before embarking on any financial planning activity. Whilst every effort has been made to ensure the information contained in this communication is correct, we are not responsible for any errors or omissions.
Lehman Brothers filed for bankruptcy on 15 September 2008. With $639 billion in assets and $619 billion in debt. Their bankruptcy filing was the largest in history and prompted an immediate fall in the FTSE 100 of 4%. It was the beginning of a slump that by Christmas of 2008 had resulted in 23% being wiped off the value of Britain’s top 100 companies. As a stock market crash, it ranks alongside the dotcom bubble and the shock of 1987. However, while living standards have flat-lined since that date, the stock market revival has been spectacular. Many investors were, however, spooked by the financial crisis of 2008 and liquidated their investment portfolios. Unfortunately as shown below – they lost out on the bull run of the next 10 years.
I recently attended the British Embassy Outreach Meeting in Perigueux and as you can imagine there were a lot of disgruntled expats wanting answers that, frankly, aren’t really available right now. Understandably, for many living through the turmoil and uncertainty of Brexit, there is a lot to take into consideration and some may even be contemplating moving back to the UK.