12/05/2025
The Brazilian Federal Supreme Court (STF) has recently ruled that the amicable partition of inherited assets is valid even if the Inheritance and Gift Tax (known as ITCMD) has not yet been paid.
Under the Brazilian Code of Civil Procedure, when all heirs are adults, legally capable, and in agreement with the distribution of the estate, a simplified probate procedure may be used. In such cases, the partition can be formalized without requiring prior proof of tax payment. This does not mean that ITCMD is waived — the tax remains due and will be assessed and collected later by the state tax authorities through administrative proceedings.
Impacts on Taxpayers:
The ruling streamlines inheritance procedures, particularly when there is agreement among heirs. It reduces legal costs, avoids delays in asset transfers, and highlights the importance of proper estate planning to ensure compliance with tax obligations while facilitating wealth succession.
Our Tax and Private Wealth & Succession Planning teams are available to assist with probate procedures, estate structuring, and tax risk mitigation.
Co-authored by: Tiago Zonta Guerreiro and Carlo Fantoni Neto.
