The inventory is a crucial step in the Succession Law, which involves sorting and distributing the assets of a deceased individual among their heirs and beneficiaries.
Lawyers must fully understand the intricacies of this process, whether they are legal or non-legal, in order to provide comprehensive and effective customer service in cases of inheritance.
This article will discuss key inventory aspects, including its functions, modalities differences, and best practices for lawyers looking to excel in the field. Take a look!
What is Part Communion of Goods, and what goods are included and excluded from this arrangement?
What does inventory refer to?
The inventory is the process, either legal or administrative, for sorting and allocating the assets, possessions, and liabilities of a deceased individual.
The inventory’s goal is to legally and transparently transfer the deceased’s estate to the heirs, enabling the proper sharing, alienation, or management of the assets.
The inventory in Brazil can be done either through a court process or outside of court, based on the circumstances of the case and agreement among the heirs.
Understanding the System and Legal Consequences of Complete Separation of Assets
What are the different types of Inventory methods?
Judicial Inventory
The judicial inventory must be conducted in the specified circumstances.
- When there are minors or individuals lacking capacity among the beneficiaries.
- When the heirs cannot agree on how to divide the assets.
- When a person passes away and leaves a will, except in cases where the will does not prohibit extrajudicial inventory.
Extrajudicial Inventory – Inventory without involving the court system
The extrajudicial inventory, as per Law No. 11.441/2007, can be conducted through a document if specific conditions are fulfilled.
- All heirs are superior, competent, and willing to share.
- There is no testament or, if there is one, it has already been legally validated.
- All parties involved sign the official document with the help of a legal professional.
This option is quicker and more affordable, and is suggested for cases that are settled mutually and without going to court.
When is the deadline for submitting the inventory following a death?
The inventory must be initiated within 2 months of the individual’s passing, as stated in Article 611 of the Civil Procedure Code.
Failure to meet this deadline could result in a fine being imposed on the ITCMD (Inheritance and Donation Tax), with the amount varying depending on state laws.
What documents are required?
Inventory typically necessitates certain essential documents.
- Certificate of death of the individual.
- Heirs and spouse’s personal records.
- Marriage certificate, if needed.
- Text: Religious texts or legal documents concerning ownership of land.
- Bank statements, evidence of investments, and paperwork concerning movable assets.
- Tax debts that are in the negative.
Lawyers must make sure all paperwork is accurate and current to prevent any hold-ups in the procedure.
Lawyers’ Guide to Inventory Actions: Step-by-step Instructions
Acting in legal inventories necessitates organization, planning, and focus on legal and documentary specifics.
Here are the essential steps to begin and effectively manage the process:
Initial examination of the case
- Interview the heirs extensively to identify the assets, liabilities, and any tax or legal matters associated with the deceased individual.
- Evaluate whether there are any conflicts between heirs or third parties that could impact the inventory process.
- Verify if the situation aligns with the criteria for extrajudicial inventory, such as agreement among heirs, lack of a will, and capacity of all involved, or determine if legal action is required.
Negotiation and mediation techniques
- In situations where there are disagreements among heirs, mediation techniques can be employed for conflict resolution.
- Avoid conflicts: minimize the chance of disagreements and disputes that could slow down the completion of the inventory.
Documentary preparation
- Documentation of the deceased includes a death certificate, identification documents (such as RG and CPF), marriage or birth certificate, any existing will, and proof of residence.
- A patrimonial survey gathers important documents related to real estate, vehicles, investments, bank accounts, companies, and other assets.
- Request tax debit certificates and identify creditors to prevent unexpected surprises when dealing with debts and bonds.
Calculation and settlement of ITCMD
- Requesting a judicial assessment of goods may be necessary for the calculation of State Tax.
- Track the guide emission and ITCMD payment to ensure approval of the sharing.
Preparation and procedure for submitting the Initial Petition
- Include in the initial petition: Identification of the deceased and the heirs, detailed description of assets, debts, and rights in the estate, appointment of an inventor (recommended by heirs or chosen by the lawyer), and request for notification of all concerned parties and involvement of the Public Prosecutor if needed.
- Identifying the deceased person and their rightful successors.
- Detailed connection between products, obligations, and entitlements related to innovation.
- Appointment of a representative chosen by the heirs or designated by the lawyer.
- Seeking participation from all interested parties and potentially involving the Public Prosecutor through a subpoena.
- Presenting the case at the deceased’s last residence is considered as competent judgment according to Article 48 of the CPC.
- Identification of the dead person and their beneficiaries.
- Detailed connection between products, liabilities, and ownership of inventions.
- Appointment of a representative (recommended by the beneficiaries or specified by the attorney).
- Seeking citation of all relevant parties and the subpoena of the Public Prosecutor, if necessary.
Inventor’s appointment
- The purpose of inventory is to instruct the person in charge on their responsibilities, managing losses, protecting the goods, and keeping track of inventory.
- Enhance the creativity in presenting initial statements and ensure the proper documentation of any evidence.
Goods’ portion
- Elaborate a clear plan outlining how the inheritance will be distributed among the beneficiaries.
- After being approved by the judge, judicial homologation involves assisting the heirs in the actual transfer of assets such as property records and vehicle transfers.
Shutdown of operations
- Draft the final report after sharing, making sure all legal requirements have been fulfilled.
- Request the issuance of a certificate of ownership to be used by the heirs when transferring assets.
Lawyer’s function in managing the estate inventory
The lawyer has a key role in the inventory, being essential in both legal and non-legal matters. Some of the primary duties include:
- To provide instructions to beneficiaries regarding their obligations and entitlements during the inheritance procedure.
- Ensure the proper allocation of items to prevent potential legal disputes.
- Assistance will be provided with the required paperwork, such as certificates and records of items.
- Negotiating deals to help move forward when there are disputes among the heirs.
- To safeguard the client’s interests by ensuring all legal and tax responsibilities are met.
Taxation and expenses related to keeping stock
Inventory expenses consist of the ITCMD, which can range from 2% to 8% based on state laws, along with court or notary charges and legal fees.
The lawyer must ensure that the heirs are involved in the planning process to prevent unexpected financial issues.
Practical advice for attorneys on inventory and succession planning
Here are some useful suggestions for taking legal action in inventory.
Planning ahead of time
Advise your clients to prepare their paperwork ahead of time, such as birth certificates, marriage licenses, death certificates, property deeds, and contracts.
Whenever feasible, recommend continuous planning like drafting wills, making lifetime donations, or establishing family trusts to simplify inheritance and prevent future disputes.
Conflict resolution through mediation
Mediate between heirs to prevent lengthy legal conflicts by encouraging cooperative agreements that focus on mutual interests through mediation methods.
Think about the option of out-of-court mediation as a quicker and more economical alternative.
Regular updates
Monitor modifications in laws, court decisions, and tax regulations that impact inventory management, including alterations in ITCMD.
Participate in events and update courses, focusing on topics such as goods regulations, inheritance in same-sex partnerships, and updates in Family Law and Succession.
Detailed examination of documents
Examine wills, civil union agreements, property deeds, and marital arrangements that may impact the division of assets.
Check for any legal or administrative claims, such as labor or tax matters, on behalf of the deceased.
Engaging in transactions with lenders
Identify the obligations left by the deceased and engage in discussions with creditors to safeguard the inheritance and concerns of the heirs.
Focus on strategies to prevent the complete exhaustion of the debtor’s assets by considering options like dividing or removing guarantees.
Master deadlines
Monitor legal deadlines for initiating the inventory process closely to prevent heirs from incurring fines or penalties.
Manage process deadlines effectively by utilizing tools or worksheets.
Utilize technological resources
Invest in technology to improve your legal services! Legal AI, designed for lawyers, can help with drafting various legal documents such as petitions, contracts, opinions, and notifications.
You can enhance your productivity and make better use of your time with it.
Utilize legal management software to consolidate time tracking, manage paperwork, and enhance client communication.
Adopting digital signatures can speed up the process of formalizing documents and requests, cutting down on bureaucracy and enhancing efficiency in daily office operations.
In a way that aims to prevent something.
Promote the creation of legal documents like wills and prenuptial agreements.
It proposes incorporating protective clauses, like inalienability, incommunicability, and impenhorability, in contracts to prevent succession issues.
Inform customers
Conduct presentations, training sessions, or online seminars to educate clients on the advantages of continuous planning.
Offer practical manuals or e-books that outline the process and legal ramifications of conducting an inventory.
Networkwork – Network operation
Work together with other professionals such as accountants and property administrators to provide a comprehensive and effective service to your clients.
Partner with mediators or arbitration specialists for intricate cases.
Financial records
Inform the beneficiaries about the significance of managing the deceased’s bank statements, financial records, investments, and tax documents.
Verify the presence of products overseas and take into account global procedures for inheritance.
Explore options outside of the legal system
Choose extrajudicial inventory when feasible for a quicker and more affordable process, as long as there are no disagreements among heirs and they are all adults.
Inform customers about the criteria and advantages of this alternative, which can be completed onsite.
Specialization refers to the process of focusing on a specific area or field.
Invest in specialized courses in Succession Law and Estate Planning to stand out in the market.
Provide specialized services in fields like international inheritance or succession planning for family businesses.
By following these methods, you will enhance your ability to provide a comprehensive and efficient legal service, gaining customer confidence and standing out in the legal industry.
The significance of strategic moves in managing inventory.
The inventory procedure is a crucial step in the Succession Law.
Mastering different types of inventory, comprehending legal processes, and implementing best practices are crucial for lawyers to ensure efficient and accurate legal representation.
The process can become more efficient and cost-effective for clients by being organized, detail-oriented, and prioritizing conflict resolution, whether in a legal or non-legal setting.
Successive planning, utilizing technology, and always seeking updates are unique factors that can greatly enhance your work outcomes.
By adhering to these suggestions and instructions, you will be ready to handle inventory challenges, providing top-notch legal services to guarantee your customers’ peace of mind and contentment.
Read and enjoy the article about multi-parenting and its impact on family legal matters.
What documents are necessary for the inventory?
– Absence of tax debts.
When is the last day to submit the inventory after someone passes away?
The inventory must be initiated within two months of the death as per Article 611 of the Civil Procedure Code.
