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V0652-23 17 March 2023 · SG de Impuestos Patrimoniales, Tasas y Precios Públicos Criterion in force
ISD · seguro de decesos

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.

The question raised

Question posed: Whether the amount received from funeral insurance must be declared when this amount is less than the actual burial expenses.

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