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V0652-23 ·17 March 2023 ·consulta-vinculante Medium impact
Tax

Funeral insurance payouts below burial costs should not be included in the deceased's estate

A taxpayer inquired whether a funeral insurance indemnity must be declared when it does not cover the full amount of funeral expenses paid. The Directorate-General for Taxes (DGT) ruled that such an amount does not form part of the deceased's estate and that the difference constitutes a deductible expense.

In 6 key points

How it affects those involved

This ruling clarifies that funeral insurance payouts intended to cover burial costs are not subject to inheritance tax if they are less than the actual expenses incurred, as they do not increase the net value of the estate.

Lifecycle

2023-03-17PublishedPublished in the BOE
Official text Based on BOE data (boe.es). Information, not advice.

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This analysis is informational only and does not constitute legal advice or create a client-adviser relationship. BM Consulting.
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