Sónia Pascoal highlights the benefits and limitations of the reform of undivided estates
The reform of undivided estates will allow a testator to appoint a third party, even if they are not an heir, to manage the estate, sell properties and carry out the distribution of assets. Speaking to Executive Digest, Sónia Pascoal considers that this change could facilitate the management of assets and help prevent disputes between future heirs.
She also welcomes the creation of a judicial procedure enabling a single heir to initiate the sale of a property where the transaction is blocked by a lack of agreement. However, she warns of the risk that the mechanism may be misused as a means of placing pressure on the remaining beneficiaries.
Sónia Pascoal also expresses reservations about the reform’s practical effectiveness. A lack of resources in the courts could lead to lengthy proceedings, while the costs involved may be high compared with the value of the assets. She further notes that the sale of a property does not necessarily resolve the distribution of the entire estate and therefore considers that the solution will have a limited scope.
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