Five things you should know about estate planning in Portugal
By International Adviser, 14 Feb 17
For British expats living in Portugal, or for those with Portuguese assets, the local equivalent of inheritance tax maybe relatively straightforward, says director of Blevins Franks Jason Porter, but succession law is very different. If advisers do not understand the rules, their client’s estate may not be distributed in line with their wishes or could attract more taxation than necessary.
Portugal’s succession law imposes ‘forced heirship’. If you are a Portuguese resident, this means that a fixed portion of your estate will automatically pass to your direct family.
This affects not just Portuguese property, but all your worldwide assets (other than non-Portuguese real estate).
As a result, your spouse, children (biological and adopted) and direct ascendants (parents and grandparents) could get a minimum of half your estate, regardless of whether that’s your intention.
However, it is possible to ensure your wishes are fulfilled by establishing specific arrangements to override this rule.
Tags: Blevins Franks | Estate Planning | IHT | Portugal
