So you’re going through your family documents and you realize that your deceased grandparents owned property in Brazil. From everything you can tell, it’s still in their name, but it likely now belongs to your parents. So now what?

There’s the usual due diligence that you’ll want to do. For example, you’ll need to see if there are any unpaid property taxes or personal debts. You might also check to see if there are any squatters living on the property.

Next, to transfer the property, you’ll have to start an inventário or inventory. This process involves identifying beneficiaries as well as assets and debts of the estate. Brazil’s Civil Procedure Code says that inventories must be completed within two months of a person’s death. In the past, this period was thirty days.

While there’s no federal penalty if you miss the two-month deadline, states can and do enforce their own penalties. In addition to paying the estate tax (Imposto sobre Transmissão Causa Mortis e Doação or ITCMD), some states charge fines as well as interest for late payments.

On the flip side, some states offer discounts to those who pay the ITCMD estate tax early. So it’s worth checking the applicable state law to see if you can lower your tax obligations.

The next time you inherit property in Brazil, get to work right away on the inventory process. After all, waiting just a few months could cost you a pretty penny (or should we say, real).