US Trust with a Brazilian Connection: Review Checklist

Educational scenario — not a report of a client engagement or an achieved result. This page replaces an earlier case narrative whose results and quotations were not substantiated for publication. No names, outcomes or savings below are presented as client evidence.

Situation to assess

A Brazilian tax resident is a settlor or beneficiary of a US trust.

What should you collect first?

Collect the trust instrument, amendments, distribution history, asset statements and the parties’ residence dates. Send only a brief description in the initial inquiry; sensitive records belong in an agreed secure intake process after conflict checks.

What distinction changes the decision?

Do not treat every distribution as the same taxable event. Brazilian attribution and reporting rules under Law 14.754/2023 and state inheritance or gift taxation require separate classification.

What is the next practical step?

Coordinate US and Brazilian advisers before a distribution or change of residence. A US trust label does not determine Brazilian treatment or eliminate forced-heirship questions.

Probate and tax checks

Brazilian probate eligibility depends on the facts and the current CNJ Resolution 35, including safeguards for wills and vulnerable heirs. A will is neither automatically required for notarial probate nor a guarantee of eligibility. Confirm tax, document and registry requirements before choosing a route.

The Brazilian Civil Code sets succession and family-property rules. For US-connected matters, check the IRS treaty list and current estate-tax guidance. For deaths in 2026, the US federal basic exclusion for citizens and domiciliaries is $15 million; prior gifts, filing elections, state taxes and nonresident rules require separate analysis. This does not exempt Brazilian transfers from ITCMD.

Discuss the scope of an estate-planning review. See our editorial and corrections policy.

Source: Law 14.754/2023.