Good morning companions,
An income is complicated for me and I doubt, doubt …
Here is the case: Pepe and Lola, married in community property, buy a flat with a mortgage (150,000 euros, 50% holders), they have a son and now Pepe DIES with 50 years and the mortgage pending (a pity).
Pepe had contracted an INSURANCE that in case of death covers that mortgage for 100,000 euros, THE DIRECT BENEFICIARY IS THE BANK AND THE POLICYHOLDER IS ONLY HIM, his wife does not appear in any of that insurance.
The mortgage in 2020, when Pepe dies, at that time amounts to about 130,000 euros and the Insurance makes a transfer and amortizes capital for 100,000 euros, leaving only 30,000 pending from now on.
From everything that I have consulted so far, I deduce that those 100,000 euros are NOT TAXED IN SUCCESSIONS (the beneficiary is the Bank, not Pepe’s widow or heirs) and with respect to personal income tax, the 50% mortgage amortized by the Insurance that Pepe did not generates personal income tax for Pepe (mortis causa) perooooo …..
For Lola, his widow, with all this operation the Insurance has amortized 50,000 euros of his half of the mortgage, despite the fact that she is neither the policyholder nor the beneficiary, but because of Pepe’s Insurance ….. I can’t find anything Of course, where you tell me if Lola should pay taxes for those 50,000 euros that have decreased her mortgage debt …
It might seem like a Capital Gain for the widow, those 50,000 euros but I don’t see it clearly nor do I find anything that regulates it or forces it to pay taxes … and it pissed me off.
To Lola, the widow, they appear in her Tax Data as the amortized amount of her 50% mortgage in 2020, those 50,000 euros of course, Pepe’s insurance paid the Bank and the Bank reduces debt …
As you see?. Any suggestion or contribution ?. Have you had a similar case?
The widow must pay personal income tax as capital gain for that 50% reduction of her mortgage or as she does not appear as a borrower or as a beneficiary of the Insurance, NO TAX ?.
Thanks, as always, any contribution will be welcome,
Greetings
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