Contribution to protected patrimony - Jesús Benavides Notary Office

Contribution to a protected patrimony

Step 1

What is a contribution to protected assets?

A contribution to a protected patrimony is a notarial document that allows contributions to be made to a distinct patrimonial unit, destined to protect and satisfy the present and future economic needs of a disabled or dependent person.

Step 3

What are the costs of formalizing the contribution to a protected estate?

This is a merely informative and non-binding estimate. It is calculated on the basis of two criteria: 1) our knowledge of the Notarial Tariff and 2) our daily experience in the preparation of this type of notarial document. (Royal Decree 1426/1989, dated November 17, 1989). and 2) our daily experience in the preparation of this type of notarial document. However, any variation (upward or downward) will be duly justified at the time of issuing the final invoice for the notarial service rendered.

Step 4

More frequently asked questions

What is a protected heritage?

A protected patrimony is an institution provided for in civil legislation, by virtue of which it is possible to create a set of assets intended to meet the present and future vital needs of a person suffering from a handicap or disability.

For further details, please refer to the section of this website on the analysis of the constitution of protected assets.

What is the purpose of contributions to a protected estate?

Logically, when the protected patrimony is created, a series of assets or rights are contributed to it that, at that time, are considered sufficient to meet the needs of the beneficiary.

However, if a posteriori, the persons who constitute it (for example, the beneficiary's parents), or other third parties (for example, other relatives, such as grandparents, siblings or friends of the beneficiary), have the possibility of contributing additional assets or resources, with which to ensure in a more adequate way the needs of the beneficiary, or to cover new needs that may arise, through this new contribution, the contributors will be able to adequately cover such needs, ensuring decent attention and care for the beneficiary.

How can more assets be contributed to the protected estate after it has already been constituted?

Once the protected patrimony has been constituted, it is possible a posteriori to contribute more assets or rights to ensure the beneficiary's dignified living conditions. For this purpose, these new contributions must be conveyed by means of a new public deed, in which these additional contributions will be recorded.

How will the administration of these new assets be governed?

The administration of these new assets that are contributed to the protected patrimony will be governed by the provisions of the original deed of incorporation, and not by the provisions of the contributors in this new deed.

What are the tax benefits of contributing to a protected estate?

In relation to the tax treatment of the contribution to protected assets, it is again necessary to remember, as was done when analyzing the constitution of protected assets, that it is here where one of the great differences between the state and autonomous community regulations appears, since the tax benefits applicable to this figure differ notably depending on the type of regulation.

Thus, if the protected patrimony is constituted under the protection of state regulations (Law 41/2003, of November 18, 2003), the following tax benefits, among others, may be applied:

  • As far as the disabled person's personal income tax is concerned, the contributions received by his or her protected assets will be considered as earned income up to the amount of €10,000 for each contributor (and with an annual limit of €24,250 as a whole), so that whatever exceeds this amount will not be subject to taxation.
  • As regards the contributor's personal income tax, the contributor may deduct up to €10,000 per year from his taxable income for the contribution made.
  • In the case of Transfer Tax and Stamp Duty, the contributions made to the protected assets will be exempt.
  • Likewise, the part of the contributions that are considered as earned income for the recipient will not be subject to Inheritance and Gift Tax.

On the other hand, in the case that the protected patrimony is constituted under the Catalan law, these tax benefits, as far as Personal Income Tax is concerned, are not applicable, since the Personal Income Tax Law only provides for their application when the constitution is carried out under the protection of the state law.

Thus, in the Catalan case, more limited tax benefits will be applicable, provided for in the Catalan Law 2/2016, of November 2, on urgent modifications in tax matters, of which the following are noteworthy:

  • A 99% bonus in the Wealth Tax for the assets that are part of the protected patrimony.
  • In the Inheritance and Gift Tax, a 90% reduction in the excess amount of the contributions to the protected patrimony with respect to the limit established by law to be considered as earned income.
  • In the case of Transfer Tax and Stamp Duty, the contributions made to the protected assets will be exempt.

Related articles

Step 6

Make an appointment