From new UK pension tax rules landing next April to the Spanish documents every expat should have in place, here is the latest estate planning news, plus some handy seasonal advice, from the team at Thy Will Be Done.

1. Why you need a Spanish Power of Attorney and a Health Advance Directive

Navigating legal and medical decisions as an expat in Spain takes proactive planning. Without the right documents, a sudden loss of capacity can leave your family facing complex, costly cross-border legal proceedings just to manage everyday affairs or medical choices.

A Power of Attorney (Poder Notarial) is vital for financial and legal security. If you lose mental capacity through illness or an accident, your chosen representative cannot automatically step in to manage Spanish bank accounts, pay bills or sell property without a power of attorney already executed before a Spanish notary. Crucially, it must include the specific Poder Preventivo (preventive power) clauses, so it remains valid precisely when you need it most.

An Advance Directive (Documento de Instrucciones Previas, or Living Will) covers medical choices. It legally sets out your wishes on end-of-life care, life-prolonging treatment and organ donation should you become unable to communicate. Spanish healthcare providers are legally bound to follow these registered directives, sparing families agonising decisions and disputes in an emergency.

Together these instruments bridge the gap between English-law expectations and Spanish bureaucracy. Putting them in place early keeps your voice, your assets and your dignity fully protected under Spanish jurisdiction.

2. A Spanish prepaid funeral plan, or a trust, is a must

Because cremations usually have to take place within 48 hours of death in Spain, it is important to prepare for your final journey well in advance, to lift the organisational and financial burden that would otherwise fall on your family. There are two options.

1. A traditional prepaid Direct to Cremation plan

Everything is covered: collection from home or hospital, time in the funeral home, travel to the crematorium and, if you wish, the return of your ashes in an urn for your family. The recommended plan is £2,595, with the ability to buy one outright (for yourself, or both of a couple), or pay a 595€ deposit followed by interest-free payments over 12 months (166.66€) or 24 months (83.33€). You can also buy a single plan for the first of a couple to pass away, with the survivor deciding later whether to buy their own.

2. Setting up a trust in the UK

For those who prefer not to tie money up in Spain, a UK trust (fully covered by the FSCS) can be set up instead. With two family members as trustees and you not a beneficiary, funds sit outside UK inheritance tax after seven years. Up to £325,000 can be held without tax, a potential saving of up to £130,000 if your estate is over £325,000, and funds can be released on death to the recommended funeral plan provider so your wishes are still carried out promptly.

3. Attending a Moros y Cristianos festival this autumn? A few tips

A Moros y Cristianos (Moors and Christians) festival is one of the highlights of life in Spain, blending history, pageantry and community spirit. To make the most of it:

• Treat the schedule as a guide. Official programmes are loose; events often start on “Spanish time”, and impromptu processions appear around every corner.
• Leave the car behind. Road closures, parking restrictions and marching bands make driving a headache. Park well outside the centre and walk in, or use local transport.
• Prepare for the noise. From morning firecrackers (masclets) to blank-firing muskets and brass bands, it is loud. Earplugs are handy, and do consider sensitive pets.
• Dress for stamina and weather. It can be hot even in autumn, yet nights get breezy and celebrations run into the early hours. Wear comfortable shoes and bring a light layer.
• Secure your spot early. Grandstands often need tickets, but street-side viewing is free. Arrive in good time for a good position on the parade route.
• Enjoy it respectfully. This is a deeply meaningful local tradition run by community volunteers, not a tourist show. Embrace the hospitality and the atmosphere, and keep an eye on your belongings and your surroundings.

4. How you can help protect Spain’s environment

Living abroad brings a responsibility to settle into the local community sustainably, and recycling is a simple way to do your bit. Spain uses a colour-coded system: yellow for plastics and cans, blue for paper and card, green for glass, and brown for organic waste.

Language barriers and unfamiliar local rules mean recyclables sometimes end up in general waste by mistake. When that waste breaks down in landfill it releases methane, a greenhouse gas far more potent than carbon dioxide. By separating your household waste, rinsing a tin, flattening a box, or using your local Puntos Limpios (civic recycling centres), you help reduce the energy needed to extract raw materials and you protect the Mediterranean’s ecosystems and marine life. Small, everyday habits add up across thousands of expat households.

5. Pensions and inheritance tax from next April

From 6 April 2027, most unused pension funds and death benefits will be counted as part of a deceased person’s estate for UK Inheritance Tax (IHT). This is a major change. It undoes the long-standing strategy of preserving pensions while spending other assets first, so it is worth reviewing your plans now.

• Re-think your drawdown strategy. With pensions now exposed to a potential 40% IHT charge, it may make sense to draw on pension funds more actively for living costs in retirement.
• Review your beneficiary nominations. Spouses and civil partners stay exempt, but make sure your expressions of wishes are up to date, especially where beneficiaries are children or others who would now face a tax liability.
• Consider lifetime gifting. Using pension income to fund gifts can shrink your taxable estate. Regular gifts out of surplus income can fall outside your estate straight away, provided they do not affect your standard of living.
• Watch the Residence Nil-Rate Band. Adding pension wealth to your estate raises its value, and larger estates can see this band tapered or lost.
• Prepare your executors. Executors will be legally responsible for reporting and paying IHT on pension assets, which means closer coordination with pension providers. It is one reason more clients are appointing Thy Will Be Done as executors for their UK estates as well as their Spanish ones.

If this affects you, it is a good moment to review your Will and wider estate plan.

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