Brazil CNJ allows inheritance inventories without prior tax payment

The National Council of Justice (CNJ) has implemented a new rule, formalized through Resolution No. 695, that allows families to complete inheritance inventories at notary offices without the prior payment of the ITCMD (Imposto sobre Transmissão Causa Mortis e Doação).

While the tax remains mandatory, the new regulation separates the formalization of the public deed from the requirement of immediate tax payment. This change aims to assist heirs who possess assets, such as real estate, but lack the liquid cash necessary to settle tax obligations before finalizing the division of the estate. Under the new rule, notaries must record that heirs are aware of their tax obligations and notify the tax authorities within five days.

However, implementation varies by state due to existing local laws. In São Paulo and Rio de Janeiro, tax authorities have indicated that the requirement for prior payment will continue, with Rio de Janeiro citing the need for fiscal control. In Paraná, notaries are exempt from the responsibility of prior collection but must still fulfill accessory obligations and report the deeds to the state to avoid joint liability.