Case Study: British Expat Dies Without a Brazilian Will

Client Profile

David, 52, British executive who worked as the Brazil country director for a European industrial automation company. Lived in São Paulo for 7 years, initially on a temporary work visa, later obtaining permanent residency. Married to Juliana, 48, Brazilian national. Two minor children: Lucas (12) and Sofia (9). The family lived in Vila Nova Conceição, one of São Paulo’s most affluent neighborhoods.

Brazilian assets:

• Apartment in Vila Nova Conceição: R$5.2M (purchased 2018)
• Investment portfolio at XP Investimentos: R$1.8M (CDB, LCI, fundos multimercado)

UK assets:

• Workplace pension: £280,000
• ISA (Individual Savings Account): £140,000
• No UK property (sold before moving to Brazil)

Total estate: approximately R$10.5M (including UK assets at prevailing exchange rate).

David had a UK will drafted in London before his move to Brazil. He never created a Brazilian will. He died of sudden cardiac arrest at age 52 while playing tennis at his club in Ibirapuera.

The Challenge

David’s death without a Brazilian will triggered a cascade of legal, financial, and practical problems for Juliana and the children.

Problem 1: Judicial Inventory Was Mandatory

Under Brazilian law, when there are minor heirs, the inventory must proceed through the judicial system (inventário judicial) — the extrajudicial (cartório) option under Lei 11.441/2007 is only available when all heirs are adults and in agreement. Lucas and Sofia, at 12 and 9, made extrajudicial impossible regardless of any other circumstance.

A judicial inventory in São Paulo, for an estate of this complexity, typically takes 12-24 months. David’s took 18 months.

Problem 2: Frozen Bank Accounts

Upon David’s death, XP Investimentos froze the R$1.8M investment portfolio. This is standard procedure — Brazilian financial institutions freeze the deceased’s accounts until a court-appointed inventariante (estate administrator) presents a judicial authorization to manage the funds. Juliana was eventually appointed inventariante, but this took 3 months. During those 3 months, she had no access to R$1.8M in liquid assets — money she needed for mortgage payments, school tuition, household expenses, and the children’s daily needs.

Juliana’s own savings covered approximately 6 weeks. She was forced to borrow R$85,000 from family members to bridge the gap.

Problem 3: Apartment Could Not Be Sold

Juliana considered selling the Vila Nova Conceição apartment and moving to a smaller home — both to reduce expenses and to generate liquidity. But real estate cannot be sold during an open inventory proceeding without judicial authorization, which requires the Ministério Público (public prosecutor) to review and approve any disposition of assets affecting minor heirs. The apartment was effectively frozen for the entire 18-month process.

Problem 4: UK Assets Required Separate Proceedings

David’s UK will governed his UK assets, but its execution required a separate Grant of Probate from the UK courts. Juliana had to hire a UK solicitor to handle the pension and ISA. The UK pension fund required a death certificate — which the UK solicitor needed apostilled and translated from Portuguese. The Brazilian death certificate needed to be sent to the UK, translated by a certified translator, and apostilled under the Hague Convention. This back-and-forth added 5 months to the UK proceedings alone.

The UK pension had a nominated beneficiary (Juliana), which simplified the pension payout. But the ISA had no beneficiary designation and passed through the estate, requiring the Grant of Probate before Juliana could access it.

Problem 5: ITCMD Bill of R$280,000

São Paulo ITCMD at 4% applied to the full value of David’s Brazilian estate passing to heirs (R$7M total: R$5.2M apartment + R$1.8M investments). Under CC Art. 1.829, Juliana as surviving spouse under comunhão parcial de bens (the default marriage regime) was entitled to her meação (50% of assets acquired during the marriage). The apartment was acquired during the marriage, so Juliana’s meação was R$2.6M — this portion is not subject to ITCMD because it was already hers by operation of the marriage regime.

The taxable inheritance was the remaining R$4.4M (R$2.6M from apartment + R$1.8M investments). ITCMD at 4%: R$176,000. However, the SEFAZ (state tax authority) assessed the apartment at a higher reference value of R$6.8M, pushing the ITCMD to approximately R$280,000.

Juliana had to pay this R$280,000 before receiving the inherited assets — a timing problem that forced her to request judicial authorization to use estate funds for ITCMD payment, adding another 45 days to the process.

Problem 6: No Powers of Attorney

David had no Brazilian procuração granting anyone the authority to manage his affairs. Juliana had to petition the court for every administrative action: accessing bank statements, obtaining tax records, communicating with David’s employer about pending compensation, and managing the apartment building’s condomínio obligations. Each petition required judicial review and Ministério Público approval due to the minor children.

What a Brazilian Will Would Have Changed

A R$3,000 Brazilian testamento público — a single afternoon at a cartório — would have changed the trajectory dramatically:

More importantly, if David had engaged in estate planning during his lifetime, he could have:

• Executed a donation with usufruct of the apartment, removing it from the inventory entirely
• Set up a life insurance policy to provide immediate liquidity for Juliana (CC Art. 794 — exempt from inventory and ITCMD)
• Coordinated his UK and Brazilian wills so neither revoked the other
• Created powers of attorney for Juliana covering both Brazilian and UK assets

“The most expensive document in Brazilian estate planning is the one that was never drafted. A R$3,000 testamento público would have saved this family R$320,000 and a year of grief.” — Zachariah Zagol, Founding Partner, OAB/SP 351.356

The Outcome

After 18 months, the judicial inventory was concluded. Final accounting:

Estimated cost had David done proper estate planning:

Difference: R$320,000 — plus 10 months of Juliana’s life spent navigating courts instead of caring for her grieving children.

Key Takeaway

David was not irresponsible. He was a senior executive who earned well, invested prudently, and had a UK will in place. He simply assumed — as most expats do — that his home-country estate plan covered him. It did not. Brazilian law governs succession of assets located in Brazil (LINDB Art. 10), and a UK will has no automatic effect on Brazilian real estate or bank accounts. The cost of this assumption was R$320,000 and 18 months of family trauma that a single afternoon at a cartório could have substantially mitigated.

“Every expat who owns property in Brazil and does not have a Brazilian will is running the same risk David’s family paid for. The only question is whether the cost falls on you or your heirs.” — Zachariah Zagol, Founding Partner, OAB/SP 351.356

If You’re Facing a Similar Situation

If you are a foreign national living in Brazil without a Brazilian will — regardless of whether you have estate documents in your home country — you are carrying the same risk David’s family paid for. An estate planning consultation takes 90 minutes. A Brazilian testamento público can be drafted and registered in days. The pre-2027 donation window offers additional savings for those willing to act now. Don’t leave your family in the position Juliana found herself in. Contact ZS Advogados today.