It was recently reported that extrajudicial probate no longer requires the advance payment of the ITCMD (State Estate and Gift Tax). This change directly impacts how estate settlement and asset distribution are handled outside of the judicial system.
Understanding the Key Concepts
To grasp the scope of this measure, it is important to clarify two fundamental concepts:
- Extrajudicial probate (inventário extrajudicial): an administrative procedure conducted directly at a public notary office (cartório), without the need for court proceedings, used to inventory and distribute the estate left by a deceased individual.
- ITCMD: the Brazilian state tax levied on the transfer of assets and rights through inheritance or donations.
End of the Prior Payment Requirement
The main reported change is the waiver of prior tax payment as a prerequisite for completing the procedure at a notary office. Previously, the requirement for advance ITCMD collection often represented a financial barrier at the beginning of the probate process, as the parties involved had to disburse funds before having formal access to the inherited assets.
Under the new guideline, advance tax collection is no longer a mandatory condition for drafting the extrajudicial probate deed. This measure allows the administrative procedure to move forward more smoothly at the notary office.
Practical Considerations
Exempting the prior payment of ITCMD simplifies the workflow of out-of-court probate, providing greater speed for regularizing assets. This is a relevant development for estate planning and asset management for families and investors in Brazil.
This content is for informational purposes only and does not constitute legal advice. For guidance on specific matters, consult a qualified lawyer.
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