Many Brazilians who live in the United States maintain strong personal, family, and financial ties to Brazil. Owning property, holding bank accounts, or being an heir to assets in Brazil is very common among the large populations of Brazilians living in states like Florida and Massachusetts.
However, when a person passes away, inventory matters regarding Brazilian assets are governed by Brazilian law, regardless of where the heirs live or if they’re Brazilian or a foreigner.
Gaining an understanding of how inheritance works in Brazil is essential for Brazilians abroad helps to protect rights and avoid legal complications.
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Does Brazilian inheritance law apply if I live in the United States?
Under Brazilian Civil Code, assets in Brazilian territory are always subject to Brazilian inheritance rules, even if the deceased or the heirs live in the US. This means that real estate, bank accounts, investments, and business interests in Brazil must go through a Brazilian inheritance process.
According to Dr. Vitória Vilariño, a succession law specialist and lead author at Direito à Herança, living in the United States does not prevent an heir from receiving an inheritance in Brazil, but proper legal representation is needed in order to comply with Brazilian procedures.
Importance of a Lawyer Specialized in Brazilian Inheritance Law
Brazilian inheritance law (Direito Sucessório) is complex and highly formal. A lawyer specialized in inheritance in Brazil is central to assisting heirs who live abroad with:
For States-side Brazilians, having a trusted lawyer in Brazil makes sure that all corners are covered and the process runs smoothly.
Judicial Versus Extrajudicial Inventory in Brazil
There are two ways to process inheritance cases in Brazil:
A specialized inheritance lawyer will determine the appropriate route and manage the entire process on behalf of heirs abroad.
Understanding ITCMD (Brazil Inheritance Tax)
Similar to US inheritance taxes, Brazil does not have a federal inheritance tax. ITCMD (Imposto sobre Transmissão Causa Mortis e Doação) is a state tax on inheritance and donations in Brazil:
Even if the heir lives in the United States, ITCMD must be paid in Brazil for Brazilian assets. The deadline is typically 180 days.
Receiving the Inheritance from Abroad
Once the inventory is completed and ITCMD is paid, assets are transferred to the heirs. This may include:
With proper legal representation, Brazilians living in the US can receive their inheritance without traveling to Brazil, using powers of attorney and remote procedures, which may be necessary for those with no financial or social ties in Brazil.
Final Considerations
With inheritance matters usually coming around during emotional times, the distance can make the process even more challenging. For US-based Brazilian citizens, getting to know the laws around inheritance in Brazil, as well as connecting with a specialized inheritance lawyer, is the safest way to protect one’s inheritance and receive it without issues.
