07 Apr Estate Probate Lawyers Attorneys in Peru Estate Probate Lawyers Attorneys Inheritance
Successions in Peru: Peru Estate Probate Lawyers Attorneys Inheritance
From simple successions to complicated ones, we work seriously to complete the process as quickly and cost-effectively as possible.
Are you a foreigner in Peru who needs help?
Foreigners who reside in Peru can be in for an unpleasant surprise when attempting to draft or execute a will within Peruvian territory. It is not uncommon for a judge to declare a will as null and void, for failing to comply with Peruvian law. Likewise, a notary might refuse to legalize a will based on the same line of reasoning. Faced with this baffling attitude, how can you ensure the successful execution of your will? Below are some helpful tips for understanding inheritance in Peru:
The first piece of advice you should have in mind is checking whether Peruvian law is applicable when drafting your will. According to international inheritance law, a person’s inheritance shall be subject to the laws of his or her last place of legal residence. This means that, when a person passes away in Peru, or when a person drafts a will in Peru, they must be mindful of Peruvian mandatory rules regarding inheritance. Consequently, a will which fails to comply with said rules will be considered null and void.
The second piece of advice would be checking which rules are applicable to you. Peruvian inheritance law establishes that your spouse and children are mandatory heirs. This means that, except in the case of specific circumstances, you cannot disinherit your spouse or children. According to these provisions, half of the inheritance must go to your spouse, and the remaining half must be equally divided between your spouse and children.
Successions in Peru
Notwithstanding the aforementioned, Peruvian inheritance law allows you to freely dispose of up to one-third (1/3) of your personal and private property when you have a spouse and children; and up to one-half (1/2) of your property when you only have living parents and ascendants.
The third and final piece of advice would be trying to get your will legalized by a notary. If you have followed the instructions above, you should have no problem having your will legalized by a notary. Doing so will help immensely in the execution of your will, as the notary will forward your will to the Peruvian Superintendence of Public Registries for its official registration. Having your will registered will significantly improve the chances of its correct execution by the judicial branch, and will minimize the occurrence of misinterpretations and costly legal procedures.
Things that you can inherit in Peru
Property: When someone dies any private property (or shares in private property) that (s)he owned will become a part of his or her estate. This estate will be distributed according to the law by the administrator. Depending on the type of property held and the instructions left in the will, there are many ways in which an individual could inherit property and many rights and responsibilities that come along with such an inheritance.
House: if you have inherited a house, you’ll want to make sure the homeowner’s insurance is paid up and the estate or trust is named as the insured, in case anything happens to the home between the decedent’s death and the end of the probate.
Household chattels: means all furniture, curtains, drapes, carpets, linen, china, glassware, ornaments, domestic appliances and utensils, garden appliances, utensils and effects and other chattels of ordinary household use or decoration, liquors, wines, consumable stores and domestic animals owned by the intestate immediately before the intestate’s death. Things like a motor vehicle, boat, aircraft, racing animal, original paintings or other original work of art, trophy, clothing, jewelry, or other chattels of a personal nature are not part of household chattels.
Farm: Estate planning is important for all families and business owners, but it is crucial for farmers. It takes someone who understands farming, and the law, to give you the best legal representation when structuring your farm succession plan. This is the goal of our estate planning attorneys.
Peru Estate Probate Lawyers Attorneys Inheritance
We will sit down with you and wade through the complex legal, tax and related issues associated with farm succession planning. Our goal is to provide you with the best solutions, including:
- Minimizing death taxes
- Leaving your children’s inheritance in a trust,
- Creating mechanisms to maximize the benefits of the law. We caution farmers to get accurate estimates on the current value of their holdings since the value of farms continues to be on the rise.
- Treating all children fairly – but not necessarily equally. This might include implementing a plan that allows the child who is managing the farm to have control of day-to-day decisions and be provided with a reasonable salary for services rendered while dividing net profits equally among all the children.
- Implementing a customized farm succession plan that meets the specific needs of each farm family. For example, we might recommend doing some gifting during the farm owner’s lifetime in order to reduce the size of the taxable estate at death. In other circumstances, lifetime gifting might not be advisable.
Estate Probate Lawyers in Peru
Life Insurance: If you are the beneficiary of a life insurance policy, the proceeds can pass directly to you without going through the probate process. The proceeds are not subject to income tax in Peru, although depending on the size of the decedent’s estate, estate taxes may apply. In order to receive the funds, beneficiaries should contact the life insurance company and provide any requested documentation.
Car: it is necessary to initiate before the judge a process of succession so that, once the case is resolved, he sends judicial communication that orders the Automobile Registry where the Vehicle is registered, the transmission of the property to the heirs.
Motorcycle: you will need to register its transmission at the Automobile Registry in Peru.
Annuities: Some annuities cannot be inherited, as payments stop when the owner passes away. Some, however, can pass to a designated beneficiary or have special provisions for transfer to a spouse.
Successions in Peru
Family business: If you are previously in the business and want to take over as the leader (whether you are a family member or not), consider adopting these guidelines:
- Have a personal development plan.
- Find and use a suitable mentor or coach.
- Identify opportunities for skills development, e.g. turn-around situations, start-up situations, handling employee performance problems.
- Gain experience outside the business.
- Develop your profile independent of the owners, e.g. by joining industry associations and attending relevant seminars.
- Ensure regular communication with the owner.
But if you are not in the business, think carefully before entering the family business. So you should ask yourself the following questions: Why am I joining the business? Is it to please my parents, or will it provide me with the career I want? Will I have the freedom to make a real contribution and reach my own potential? What can I bring to the business?
While it is true that most airlines technically “own,” the frequent flyer miles your loved one earned, there’s no reason for you not to be assertive about requesting that the miles are transferred to your account. A few companies will allow the transfer of airline miles after the death of a loved one.
When you call the airline company, get copies of the death certificate, the loyalty program account number, address, and email ready. It is also important that you have your own account, into which the awards can be transferred.
Aircraft: If the decedent owned an aircraft in Peru, by filing the necessary papers with the probate court administrator, he will be given the power to sell or re-register the aircraft.
Airplanes can remain in the name of the person who died until you want to transfer the property. The new owner must register the aircraft in the DGAC- Dirección General de Aeronáutica Civil, Peru.
Jewelry: Dividing jewelry among heirs may be difficult if the deceased didn’t leave instructions, but there are some things an executor or administrator can do to avoid arguments with heirs.
There are different ways to divide this asset:
According to Will
If the will left specific instructions for pieces of jewelry, the administrator must follow those instructions first. An administrator only divides jewelry not specifically left to a person in the will.
Dividing by Value
If the will left all the deceased’s personal possessions to siblings without giving instructions for specific items, the administrator must divide the jewelry among siblings equally. He should have all jewelry appraised by a professional jeweler or appraisal service. Then he will use that value to give each sibling an amount of jewelry equal to their share.
Dividing by Request
Dividing jewelry is often more difficult if the siblings want specific pieces for sentimental reasons. The executor still must have the jewelry appraised, as each beneficiary is entitled to an equal share. He may take the appraisal list and meet with the siblings to discuss who will receive what.
If one sibling agrees to take jewelry worthless because of personal reasons or to please another sibling, the administrator has to give that sibling more of the other personal possessions to make up the difference in value. Ultimately, the administrator should decide who gets what if the siblings can’t agree. He may try to fulfill requests and get siblings to agree to avoid problems. But he has the authority to divide the jewelry as he sees fit. As long as each sibling gets their fair share.
It is said that at least one in three people collects something, from art and classic cars to antiques.
Like every other valuable asset a collector owns, art collections, antiques, and others should be addressed within his or her comprehensive estate plan. These plans are traditionally developed by an advisory team that may include attorneys, investment advisors, financial planners, and insurance specialists.
The collection should be protected from loss, damage, the claims of creditors, and unnecessary taxation.
Does Peru recognize foreign wills?
Peru has ratified the “Hague Convention on the conflicts of laws relating to the form of testamentary dispositions”. Thus, in most cases, there are no issues with respect to the formal validity of a foreign will.
What are the rights of a surviving spouse in Peru?
The surviving spouse has the right to 50% of the estate. Also, an equalization of accrued gains in the marriage. If the deceased did not name his spouse in his will, the spouse will receive the forced share.
What are the rights of the children of the deceased or other next of kin?
If the testator did not make a will, the children receive a share of the estate under Peru’s intestacy rules. If the deceased did not name them in his will, the children will receive the forced share.
What happens if there is more than one heir?
If there is more than one heir, the estate becomes the joint property of the other heirs. In principle, any act of administration requires a unanimous decision of the other beneficiary. However, some exceptions apply.
What is a Peruvian certificate of inheritance?
The certificate of inheritance states the identity of the heir and his respective share in the estate. As well as any limitations to the heir’s power of disposition over the estate. It is often necessary to prove the heir’s right of inheritance, especially when immovable property is part of the estate. The Certificate of inheritance proves that the appointed person has a right to administer the estate.