Inheritance adjudication via public deed does not generate adjudication excesses

The management of assets following the death of a decedent often raises doubts regarding the exact moment when the transfer is perfected and whether asset movements prior to partition can be classified as donations or adjudication excesses.

What the DGT has resolved

The Dirección General de Tributos (DGT) has determined that the definitive adjudication of an inheritance, when formalized through a public deed, does not give rise to other taxable events under Inheritance and Gift Tax (ISD) in the form of adjudication excesses. The criterion establishes that any movement of assets carried out regarding a dormant estate, from the time of death until formal acceptance, must be understood as a provisional measure.

The resolution underlines that the tax treatment of these operations does not depend on arbitrary will, but is strictly linked to the civil regulations governing the acceptance and repudiation of an inheritance. Therefore, the transfer of assets in this phase is not considered a donation nor does it generate an adjudication excess if the final partition complies with what is legally established.

What it means for you

For heirs, this criterion provides legal certainty during the transition phase between death and definitive partition. It means that the tax administration cannot classify as donations the movements of assets carried out while the inheritance is still in a dormant state, provided that the formalities of the definitive adjudication are met.

This pronouncement prevents the management of the hereditary estate during the inventory and partition process from being erroneously interpreted as a gratuitous transfer of assets between heirs, which could lead to an unforeseen tax burden.

What you should do

It is fundamental that the partition and adjudication of assets are carried out in accordance with the applicable civil regulations to ensure that the public deed reflects the reality of the definitive adjudication. Since the tax treatment is subject to the rules of inheritance acceptance, it is necessary to analyze the nature of the movements made during the dormant stage to ensure their correct classification in the tax settlement.