The death of a family member requires the execution of a probate process and distribution of the estate. The main tax burden is the Inheritance Tax (ITCMD) (State Tax on Transfer by Death and Gift), as well as procedural, notary, and attorney fees.
Inheritance Tax (ITCMD) (State Tax on Transfer by Death and Gift) is the state tax levied on the transfer of any asset or right by inheritance (due to death) or gift. As it is a state tax, the rate varies from state to state in Brazil, limited to a federal ceiling of 8%.
In addition to the inheritance tax (ITCMD), the transfer of assets requires notary fees (public deed of extrajudicial probate or judicial process fees), registration fees for properties, and mandatory attorney fees (whether judicial or extrajudicial).
Extrajudicial probate is done at a Notary's Office through a Public Deed, being much faster (days or weeks). It requires all heirs to be of age, capable, and in total agreement on the division of assets, in addition to the presence of an attorney. Judicial probate is mandatory if there is a minor or incapacitated heir, a will, or disagreement on the distribution, and can take months or years.
Yes. According to civil law, probate must be opened within a period of **60 days** from the date of death. Failure to comply with this period generates fines on the Inheritance Tax (ITCMD) in most Brazilian states (in São Paulo, for example, the fine is 10% to 20% of the due tax).