Taxation of the succession pact of the present

Abstract

The succession pact of the present is a mortis causa free acquisition whose tax effects over different tax concepts have recently been harmonised by the Supreme Court. It is an adequate legal instrument to organise succession while alive. However, the General Direction of Aragon has changed its criteria to a more restrictive interpretation of the Autonomous tax regulations, even though the legislative reform of the tax regarding successions will propitiate, in principle, the granting of succession pacts of the present in which the taxable persons will be able to adhere to the tax benefits foreseen in the state regulations.