When you open a pension plan, the usual thing is that the beneficiary (the person who has the right to receive the money) is the participant (owner), that is, the one who contributes to it.
The other possibility is that the money is collected by the beneficiaries chosen by the participant when he dies, whose data has been recorded in the pension plan contract. You can also specify the% of each of the beneficiaries, if it is the will of the person.
What if there are no designated beneficiaries?
For the situation in which, as a participant, you have not chosen beneficiaries, the amount will be collected by your legal heirs. In case you do not have relatives, you can choose as beneficiary at the time of your death an NGO, a friend or a church.
Taxes by beneficiaries
The capital redeemed at the time of the death of the owner of the fund will be taxed as income from work in the income statement. Without taking into account the form of payment (it can be with a single payment or several payments over time). The advantage of this is that you do not pay inheritance tax.
Beneficiaries can collect the money from the pension plan whenever they want, it is not mandatory that it is when the owner's death occurs. They must provide several documents: the application for death benefit (each beneficiary one), a photocopy of the DNI and original death certificate.
• The participant chooses the beneficiaries in the pension plan contract.
• If no one is named, it will be for the legal heirs, those that appear in their will, or failing that, those designated by law.
• It can be a legal person such as an NGO.
If you want to plan your future, knowing what amounts you are going to have or what you prefer to leave with your relatives, you can put your affairs in order as soon as possible. In such a way you make sure that your will will be done. In case you want to hire a pension fund, call Audacia Abogados, and find out about your rights.