
Inheritance and the division of assets in Portugal are regulated by the Portuguese Civil Code. This process involves several stages, from the so-called “opening of the succession” to the division of assets between the heirs. Below, we explore the main points of this process.
1. Opening the Succession
Succession is opened at the time of the death of the holder of the assets, and takes place at the place of the deceased's last domicile, according to Article 2031 of the Civil Code: “Succession opens at the time of the death of its author and at the place of his last domicile.”
With the opening of the succession, the assets left by the deceased become part of an undivided and lying estate until it is accepted by the heirs or declared vacant by the State (Article 2046 of the Civil Code). Once accepted, the estate ceases to lie fallow, but remains undivided until the assets are divided among the heirs.
First, the priority heirs are called in the order defined by law to accept or reject the inheritance. If the first in the order of priority do not accept, the subsequent heirs will be called, and so on, until the inheritance is declared vacant for the Portuguese State in the last resort (Articles 2032 and 2133 of the Civil Code).
2. Legal heirs
Legitimate heirs are classified into different classes, called to inherit in the following order of priority, according to the Civil Code:
Spouse and descendants (children, grandchildren);
Spouse and ancestors (parents, grandparents);
Siblings and their descendants;
Other collaterals up to the fourth degree (always preferring the closest);
Finally, the State.
Portuguese law gives priority to descendants and their spouse, followed by ascendants with their spouse and, lastly, collateral.
In other words, as stated above, as a general rule, if the deceased left a spouse and children, only these will be called to the succession in the first instance. Only if they do not exist, are unwilling or unable to accept the inheritance, will the order of succession continue as indicated.
3. Testament (will)
It is also important to check whether or not a will exists. If there is, the will of the deceased, expressed in the document, must be respected, as long as it doesn't harm the legitimate heirs (who are the people we saw above, the spouse and descendants etc.).
4. Acceptance and Repudiation of Inheritance
The heirs called to the inheritance have the right to accept or repudiate it. Acceptance can be express (through a declaration) or tacit (acceptance implied by the heir's actions). Repudiation must be done expressly, through a declaration (Articles 2056, 2062 and 2063 of the Civil Code).
If the heir is a minor, it is possible for them to repudiate the inheritance, with special authorization from the Public Prosecutor's Office.
5. Asset Inventory and Valuation
In the event of a disagreement between the heirs, an inventory process may be necessary to identify the heirs and list and evaluate the deceased's assets, dividing them up among everyone at the end. Depending on the situation, this process can be judicial or extrajudicial.
In this process, among other things, if there is any doubt about the value to be attributed to one or more of the assets that make up the estate, it is possible to ask for them to be valued by a professional.
6. Sharing of Assets
The division of assets can be amicable (consensual between the heirs) or contentious (decided by the court in the event of a disagreement).
7. Final Formalities
Once the division has been made, it may be necessary to transfer the assets into the names of the heirs, which may include land registry (for real estate) and other legal formalities.
Final considerations on the subject of inheritance and division of assets in Portugal
Inheritance management and the division of assets can be complex, especially in large families, with high-value assets, or many assets or debts, for example. It is advisable to seek the help of a lawyer experienced in inheritance law to ensure that all procedures are followed correctly and that the rights of the heirs are respected.
We hope that this simplified guide has clarified the main aspects of inheritance and asset sharing in Portugal. If you have any further questions, please comment below and keep following our content. See you next time!
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