Sónia Costa Pascoal authors article on undivided inheritances and the sale of hereditary shares
What happens when an inheritance has not yet been divided? Is it possible for an heir to sell their share? Sónia Costa Pascoal, associated partner at Abreu Advogados, explains in an article published by Jornal de Negócios that, when an inheritance has not yet been distributed, heirs may choose to sell their ideal share (the hereditary share) to another heir or to a third party, noting that the remaining heirs have a right of pre-emption.
The lawyer further clarifies that, according to the recent understanding of the Supreme Administrative Court and the Tax Authority, the sale of a hereditary share, as a global set of rights in the inheritance, is not subject to Personal Income Tax (IRS), although the purchaser must pay Property Transfer Tax (IMT) and Stamp Duty. This solution may be advantageous for those wishing to transfer or acquire an interest in an inheritance.
Read the article here.
