Foreign Trusts and Estates in Brazil

In most countries, there are laws regarding the appropriate measures to take when someone is dying or has died. Death can be hard on family members and loved ones, and emotions often run high. While grieving is certainly important, financial issues must also be dealt with as soon as possible.

Certain laws in Brazil are in place to help people manage such issues when a loved one passes away. Brazilian succession law governs inheritance questions, but a foreign trust requires a separate review of its governing law, the assets, the people involved and Brazilian tax and succession rules. A foreign trust does not automatically remove Brazilian assets from probate.

If you own any property or assets in Brazil, you should consider looking into trust and estate laws to determine the best methods of distribution when you pass away. The same is true for people with close family members living in Brazil while they live in another country. This guide focuses on foreign trusts; for the broader plan, see our Estate Planning services.

Get Your Estate in Brazil in Order Ahead of Time

A person’s estate includes his or her tangible assets and personal property, as well as rights and interests that may not be physical. Debts, ownership arrangements and the marital-property regime also affect what can pass to heirs.

A will is a legal document that records who should receive the property you may legally dispose of when you pass away. You do not need to wait until death is imminent: creating a will in case of sudden death is a smart idea. Without clear planning, your death may be more of a burden on your loved ones. They will have to make decisions about administration after you have passed, and conflicts often arise. Those decisions remain subject to the applicable law and any valid will.

Where Brazilian succession law applies and there are necessary heirs, half of the inheritance is reserved as the legítima. The disposable share, existing gifts and marital-property rights require review; a will or trust is not a promise of unrestricted freedom to choose beneficiaries.

Consider a Foreign Trust in Its Proper Jurisdiction

In jurisdictions that provide for these arrangements, trusts are often created when a person worries that his or her estate will be tied up in probate upon their death. Instead of handing your property down to your loved ones directly, it may be possible to put it in a trust before your death instead, if the governing law permits it and the property is validly transferred.

Whether your loved ones can access it directly without going through a trial depends on that jurisdiction, the trust terms, ownership and any dispute. This is not an assurance that a foreign trust bypasses Brazilian probate. By using a trust for your property or assets, you may organize how your loved ones receive the assets after your death, but the arrangement must work under the relevant laws.

Additionally, trusts can be used to hold property or assets until a specified distribution age under the governing foreign law. A child can own or inherit property before adulthood; minority is not, by itself, a bar to ownership. If you own property, you may wish to give it to your child when you die. If you find out you will pass away before your child reaches the intended distribution age, foreign counsel can assess whether you can keep it in a trust until he or she is old enough to claim it under the trust’s terms. Brazilian representation, administration and succession rules still need separate attention.

What Changes When Brazil Is Involved?

Brazilian tax legislation expressly addresses foreign trusts. That does not create an automatic Brazilian equivalent of a common-law living trust or establish that every foreign trust is ineffective.

For succession, distinguish the applicable law from the authority conducting probate. LINDB article 10 starts with the deceased’s domicile and includes a protective rule for specified Brazilian family members. CPC article 23(II) reserves judicial probate and partition of Brazilian-situated assets to Brazilian authority. The route for a particular asset depends on ownership and the facts; signing a foreign trust deed alone does not settle those issues.

If someone has already died, see our Inheritance & Probate services and probate-process guide. This page does not replace those procedural guides.

Tax Treatment Is a Separate Question

Law 14,754/2023, articles 10–12, addresses foreign trusts for Brazilian tax purposes. Its attribution rules generally treat assets as belonging to the settlor and then to the beneficiary at distribution or the settlor’s death, whichever comes first, with an earlier-transfer provision for an irrevocable relinquishment of rights. Brazilian-resident individuals need advice on the resulting income-tax and reporting obligations.

ITCMD requires its own analysis. Complementary Law 227/2026 includes foreign-trust transfer rules; liability, timing and the applicable state legislation must be checked for the actual arrangement. A trust is not a general exemption from inheritance or gift tax. See our inheritance tax and fees guide for the broader cost questions.

Coordinate the Trust with the Rest of Your Plan

Incapacity planning in Brazil may involve the medical power of attorney and the living will, alongside separate arrangements for financial decisions and any other measures required by your circumstances. It is not limited to two documents.

It is difficult to look ahead and imagine your own death, but doing so now can spare your family and loved ones unnecessary uncertainty. By making your will and planning your trusts and estates now, you can reduce the burden of decision on your family upon your decease, which may give them more time to grieve and heal. If you’d like to learn more about trusts and estates in Brazil, an attorney can be helpful when deciding whether or not you’ll need to make such arrangements for your passing.

For coordination of wills and advisors across countries, see international estate planning. For Brazilian lifetime-transfer options, see lifetime estate planning. A holding company, gift or usufruct should be assessed on its own costs, legal effects and tax treatment.

Have Your Existing Documents Reviewed

Bring the trust deed and amendments, any letter of wishes, wills, asset and ownership records, family details, and the settlor’s and beneficiaries’ domicile and tax-residence information. A senior bilingual attorney can coordinate the Brazilian review with counsel in the trust’s jurisdiction.

Contact Oliveira Lawyers to discuss the scope of your review.