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V1102-14 15 April 2014 · SG de Impuestos Patrimoniales, Tasas y Precios Públicos Criterion in force
ISD · usufructo vitalicio

Usufruct does not expire for tax purposes due to lack of certificate of life if current law does not require it

Consultants inquired whether their mother's life usufruct is considered tax-extinguished due to failure to present a certificate of life required by a repealed regulation. The DGT ruled that, as it is not provided for in current law, the usufruct only expires upon the occurrence of actual legal grounds for extinction.

The question raised

Whether it is appropriate to understand that, for tax purposes, the life usufruct of the applicants' mother has been extinguished, and if so, whether the consolidation of ownership in the bare owners would be time-barred when it occurs.

The DGT's ruling

Law 29/1987 repealed Decree 1018/1967 to the extent that it opposes its content. Since the current Inheritance and Gift Tax Law does not establish extinction due to lack of proof of life, the usufruct is not understood to be fiscally extinguished until its actual extinction occurs. Therefore, the consolidation of ownership that has not yet occurred cannot be time-barred.

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