Courts of Justice throughout the country have been setting up the understanding that it is legal to compensate heirs who sustained burden in probate proceeding conducted abroad. Contrary to what used to apply, i.e., that assets located in other countries could not be subject to distribution in Brazil, now it is possible to offset the unequal distribution during the probate proceeding conducted in Brazil.
The search by Brazilians for investments abroad has been growing continuously, which is already reflected in family law and in the division of property among heirs. Under the procedural rules, assets located abroad must be distributed abroad, which often results in problems and tardiness in the effective transfer of the property.
With the new court interpretation, it is now possible to adjust procedural rules to the current Brazilian reality of seeking investments and construction of property abroad. Since there are different inheritance rules around the world, court have been ensuring heirs, particularly heirs at law, the equal distribution of the property according to the Brazilian rules. This path has been built by the compensation for the distribution in Brazil. Even though it is new, Courts are slowly adhering to the new argument and starting to enforce the compensation for the distribution.
Written by Clara Couto, Paralegal at Drummond Advisors