Inheritance distribution among siblings: rights, rules, and procedures

The distribution of inheritance among siblings can be a straightforward process if there’s consensus, or a complex one when disagreements arise over asset division. While the law establishes clear rules, exceptions and legal mechanisms can influence how the inheritance is distributed. Therefore, it’s crucial to understand your legal rights and duties to ensure a fair and balanced distribution. First and foremost, asset distribution must comply with the Civil Code, which defines the order of succession. The closest relatives have priority in inheriting the deceased’s assets. Thus, the order of succession follows this hierarchy:

1. Spouse and descendants (children and grandchildren);
2. Spouse and ascendants (parents and grandparents, if no descendants exist);
3. Siblings and their descendants;
4. Collateral relatives up to the fourth degree;
5. The State, if no family heirs exist.

Division of inheritance among siblings

When assets are shared among siblings, the division should generally be in equal parts. However, certain situations can alter this distribution, such as donations made during the deceased’s lifetime. If one sibling received an asset as a donation before the parents’ death, this fact must be considered in the distribution. The value of the received asset is deducted from that heir’s share through a process called collation. However, if a lifetime donation was made without the obligation to be included in the inheritance (meaning there’s a dispensation from collation), that portion is then included in the disposable quota and doesn’t affect the division among the other heirs. For example, if one sibling received a property valued at 100,000 euros and the total inheritance of 300,000 euros is to be divided among three siblings, that heir has already received part of their share. Thus, the other two siblings should divide the remaining amount between themselves.

Necessary Steps for Inheritance Distribution

The inheritance distribution process involves several bureaucratic and legal steps. It begins with the registration and communication of the death; that is, the death must be reported to the competent authorities and registered at a Civil Registry Office, Citizen’s Shop (Loja do Cidadão), or online via the Civil Online platform. The Tax Authority (Autoridade Tributária) and Social Security must also be informed. Next is the qualification of heirs. A head-of-household is appointed to manage the inheritance until its distribution. This responsibility typically falls to the spouse or the eldest child, unless the heirs agree otherwise. The qualification of heirs can be carried out in a notary’s office or court, simplifying the division of assets. And, you mustn’t forget to comply with tax obligations. After the distribution, the new owners must register the assets in their name and settle any taxes due, such as the Stamp Duty (Modelo 1).

What if there’s no agreement?

If siblings can’t reach an understanding regarding the inheritance distribution, the process can proceed to judicial inventory or be resolved via notarial means. In the case of a judicial inventory, the court analyzes the assets and the rights of each heir, and can order the sale of assets or distribute them according to legal quotas. If there’s a dispute over a specific asset, a draw can also be held, or heirs can be allowed to bid on the asset, acquiring the corresponding share from the other interested parties. If the judicial decision is challenged, appeals can be filed, which can prolong the process for several years. Inheritance distribution among siblings can be a simple process if there’s consensus. However, situations of conflict often arise that necessitate the intervention of third parties. To avoid legal and emotional complications, it’s advisable to seek legal counsel, ensuring that the asset division is carried out fairly and in accordance with the law.