There are procedures that we must take into account when losing a loved one. Although we are not usually on the lookout, they are mandatory in order to be legally responsible for the assets, rights and obligations that our family member has acquired during life.
One of the procedures is through the Form 4423: Declaration and payment of Intestate Inheritance Taxes.
In the following lines we will show as simple as possible a guide to understand the importance. How to fill it out and some other related documents. They are also of great value to achieve compliance with the taxation of inherited assets.
What is Form 4423
First of all, let us know that inheritance, are rights, obligations and assets transmitted to the heirs or legatees at the time of death of a personeither by means of a will written under the conditions of law or without a will, that is, intestate.
According to the law and through the office of the Civil Registry and Identification Service, the Effective Possession of the inheritance must be made official, that is, assume responsibility and ownership of the items named above, this is done with the Form 4423corresponding to the Intestate Inheritance Tax Declaration and Payment.
This statement can be made in person or online, by going to the website of the SII Internal Revenue Service and then go to the corresponding SII office according to the address of the applicant heir, to complete the declaration and the respective tax payment, if applicable.
How to fill out Form 4423
It is important to bear in mind that the amounts to be used to fill out the form are those in force in the semester in which the death occurred, and the dates to be entered must be in the format 00/00/0000.
If there is a spouse, this is assigned twice what corresponds to each heir child.
To fill out form 4223, we will be guided by the titles of the parts in which the return is made up, you can access the follow link to see the model.
- To fill in the identification fields of the Originator, Applicant and Effective Possession Request, the same data that was placed in the Effective Possession Request Form will be copied.
- DETERMINATION OF HEREDITARY MASS
- Copy the total amounts from the fields of the Inventory section of the Beneficial Possession Request Form that have been extracted from the Tax Assessment Form, correctly placing the value, the exception and the net value of each item.
- Assets are totaled.
- Debts are placed, if any, and totaled.
- ALLOCATIONS AND TAX DETERMINATION
- Enter the date of death of the deceased
- To place UTM to the date of death, confirm in the Internal Revenue Services pagethe amount of the UTM for the required date.
- The date of the last marriage contracted by the deceased is placed.
- In the RUT fields, those corresponding to each heir will be placed, one per line.
- Assignment Box Affects $, the amount placed in the Net Value will be divided between the number of heirs, taking into account that the spouse is counted as two.
- Assignment Affects UTM field, will be calculated by dividing the value of the Assignment Affects $ by the value of the UTM that was in force on the date of death of the deceased.
- Exemption for kinship, the values expressed in Table 1, which is found at the bottom of form 4223, must be taken into account.
- Taxable Base, the difference or subtraction from the Assignment Affects UTM field is entered minus the Exemption for kinship. If the result is a negative number, zero (0) must be placed in this box and the following ones for Taxes (Table 2 and 3) and totals.
- In the event that the result is a positive number, in the UTM Tax box (Table 2) the data from Table 2 must be taken into account, where we will look for the rate and deduction corresponding to the number of the result of the Taxable Base, the taxable value by the rate and then the deduction will be subtracted.
- In the % Surcharge box (Table 3), Table 3 will be consulted and the corresponding data is entered.
- To then calculate the UTM Total Tax box, multiplying the UTM Tax by the % Surcharge, placing the result in this box and in the Total Taxes.
- In the lower part of the Tax totalization boxes, the sum of the boxes is placed.
- The UTM is consulted for the declaration date and placed where it corresponds.
- To fill in the Total Tax to Pay, multiply the Total Tax by the UTM on the date of the declaration and enter the result.
- If the result is positive, the result is transcribed to box No. 10 Total Tax to Pay.
- In the Sworn Declaration Box, the date of the declaration is placed and signed.
Important data and documents
There are some documents related to the succession of assets, including:
The Appraised Inventory of Assetswhich is a statement made in the Effective Possession Request Form.
Detailing each and every one of the assets, rights and obligations that are part of the inheritance of the deceased and their value.
What is taken as an act of good faith by the applicant, since he himself is the one who declares and places the value of the goods.
There is the Tax Appraisal Certificateis obtained on the page by clicking here.
In the Real Estate part.
Select Tax Appraisal Certificates.
Then select the «Tax Appraisal Certificate for Effective Possession Procedure», where the respective currency will be indicated in the required semester, this is in the case of real estate.
In Form 4423, the amount corresponding to 50% of the value of the fiscal appraisal must be placed, this must be updated to the semester in which the death of the cause of the inheritance occurred. With the exception that if the property was obtained by the deceased within the three years prior to his death, it must be registered for 50% of its acquisition value, if the amount is higher than the appraisal.
Other documents are related to the confirmation of filiation with the originator of the inheritancesuch as the existence of heirs who are not registered in Chilean territory, where the document to be presented must be legalized and translated into Spanish, if applicable.
Too if the applicant is to be represented by a third partywhere to present power of attorneyin order to be confirmed by the Civil Registry.
And as another of the exceptional cases, in situations that an heir sells his rights to one of the other heirs or to a third partyknown as assignment of hereditary rights, the corresponding assignment contract must be presented.
What is the effective possession of the inheritance?
The effective possession of the inheritance is the procedure before the Civil Registry what should be done to legalize ownership of property left by a deceased personamong these assets are housing, a car, savings account, etc.
In case the deceased has not left a will, the inheritance is intestate and the procedure is before the Civil Registry, the services of an attorney are not required.
This management It must be done by the heirs or at least one of themof in person or under the representation of a third party.
This procedure It must be done to be able to manage the declaration and payment of Intestate Inheritance taxes through Form 4423.
They are considered heirsthose people who, according to the law, are the ones who own the assets that the deceased possessed in life, there being a hierarchy to request the succession without a willThe next:
- The first in the hierarchy are the children, spouse or partner who civilly lived with the deceased and they survive it. A civil partner is understood to be the person who has signed a civil union contract with the deceased, regardless of gender. When any of the children of the deceased who caused the inheritance has died before him, the children of the first, grandchildren of the deceased, are heirs.
- Second, if there are no descendants. are heirs the parents or some close ascending relative, the surviving spouse or civil partner. If no parent, spouse or civil partner survives, the heirs are surviving grandparents. If the grandparents are deceased, then they are living great-grandparents those who inherit
- The third option. Lacking all of the above, they are the brothers. By affiliation of the father and mother. Or by any of them. If any brother had died, his sons inherit itthat is to say, the nephews of the deceased.
- In fourth place. In the absence of all the aforementioned. Those are heirs collateral relatives closest by consanguineous ties. That is to say, they descend from a common trunk but are not ascendants or descendants of the deceased deceased. First the guysin case no uncle survives, they are heirs the cousins of the originator
- In fifth place and in the absence of any heir without a will of those mentioned above, it corresponds to to the Treasury or public treasury.
It is important to emphasize that:
According to the law. The cohabiting partner of the deceased who did not sign the civil union agreement is not recognized as heir. Regardless of the time they have been together and still being publicly known as a couple.
Why the Declaration and payment of Intestate Inheritance Taxes
Carry out the process of Declaration and payment of Intestate Inheritance Taxes, is a mandatory procedure. It serves to be able to use and enjoy the assets, rights and obligations that have been inherited.
In addition to avoid falling into fines and/or paying interest before the Internal Revenue Service. Until the process is completed, it is not known if we are exempt from paying taxes.
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