Brazil’s Fifty Percent Rule in Inheritance

From Ashton Kutcher to Daniel Craig, celebrities are making it clear that their wealth is theirs, and they won’t be leaving much, if anything, to their kids. The same is true for wealthy philanthropists like Bill Gates who intend to donate their fortunes to charity rather than to their family.

But not so fast if you’re living in Brazil. Estate planning isn’t so simple because the choice isn’t entirely yours. Brazil’s inheritance laws require that 50% of your estate be passed to your “necessary” heirs, and there’s no way around it.

Brazil’s 50% rule isn’t a suggestion; it’s an obligation. Heirs have a legal right to inherit part of the estate. The rule ensures that immediate family members, usually a spouse and children, are protected from disinheritance. No matter what you want, you’re stuck giving at least 50% of your estate to your heirs.

And for anyone who has a favorite child they think deserves more than the others, that’s out of the question too. The rule requires the obligatory 50% be divided equally among the heirs.

The other 50% is up to you to distribute as you wish. It could go to extended family members, friends, charities - the choice is yours. Your will, which should be filed with a notary office in Brazil with respect to Brazilian assets, can dictate where this portion of your estate will go.

As with all things in Brazil, it’s essential to plan ahead and carefully consider your options. However, be mindful that the final choice might not always be yours.