Brazil's CNJ allows inheritance inventories before tax payment

The National Council of Justice (CNJ) has ruled that families can complete extrajudicial inheritance inventories at notary offices without the prerequisite of prior payment of the Inheritance and Donation Tax (ITCMD). This administrative decision follows a request from the Notarial College of Brazil (CNB).

While the tax remains mandatory, the new directive allows for the signing of the public deed of partition before the tax is settled. This change aims to assist heirs who lack immediate liquidity to pay taxes, preventing financial constraints from delaying the formal division of assets.

However, the implementation may face challenges in certain states. Local legislations in São Paulo, Rio de Janeiro, and Paraná currently require tax payment before the deed can be executed. Tax authorities in São Paulo and Rio de Janeiro have stated they will continue to enforce their existing laws, maintaining that the CNJ directive does not waive the tax obligation or override state-level tax collection rules.