Inheritance Involving Assets in Brazil, Switzerland and Germany: Why International Estate Planning Is Essential

The increasing international mobility of individuals and families has led to a growing number of estates comprising assets located in multiple jurisdictions. When assets are held simultaneously in Brazil, Switzerland and Germany, succession becomes an international legal matter that extends far beyond a traditional probate proceeding.

In such circumstances, the determination of heirs, the validity of wills, the administration of the estate and the distribution of assets may be governed by different legal systems. As a result, effective coordination among courts, registries, financial institutions and legal professionals in multiple countries often becomes necessary.

Brazilian Jurisdiction Has Territorial Limits

Under Brazilian law, Brazilian courts have exclusive jurisdiction over probate proceedings and the distribution of assets located within Brazil, pursuant to Article 23, II, of the Brazilian Code of Civil Procedure.

This rule applies regardless of the deceased person's nationality or place of residence at the time of death.

However, such jurisdiction does not allow Brazilian courts to directly distribute real estate, bank accounts, investment portfolios or corporate interests located abroad. In other words, a Brazilian probate proceeding cannot automatically transfer assets located in Switzerland or Germany.

For this reason, the Brazilian Superior Court of Justice (Superior Tribunal de Justiça – STJ) has consistently applied the principle of multiple succession proceedings, according to which each country generally retains authority over assets situated within its own territory.

Applicable Law May Differ From Jurisdiction

Another important distinction concerns the difference between jurisdiction and applicable law.

Although Brazilian conflict-of-law rules attribute significant relevance to the deceased's domicile as a connecting factor for inheritance matters, assets located abroad may also be subject to the private international law rules of Switzerland and Germany.

In practice, this may result in parallel succession proceedings conducted in different countries, each requiring compliance with its own procedural and documentary requirements, including:

• Certified translations;
• Apostilles and legalization procedures;
• Asset valuations;
• Recognition of foreign documents and judicial decisions.

As a consequence, international estates frequently require legal coordination across jurisdictions to ensure consistency and efficiency throughout the succession process.

Recognition of Foreign Decisions

International judicial cooperation plays an increasingly important role in cross-border estate matters.

Brazilian courts may recognize and enforce certain foreign decisions, including declaratory rulings involving wills or inheritance rights, provided that such recognition does not infringe upon Brazil's exclusive jurisdiction over assets located within its territory.

This distinction is especially important in cases involving foreign wills, foreign probate decisions and judicial determinations issued by courts in Switzerland, Germany or other jurisdictions.

Accordingly, foreign decisions may produce legal effects in Brazil, but only within the limits established by Brazilian law and international cooperation principles.

Tax Considerations Require Individual Analysis

Tax planning is another critical aspect of international succession.

In Brazil, inheritance and gift taxes are generally levied through the ITCMD (Inheritance and Gift Transfer Tax), which falls under the authority of the Brazilian states and the Federal District.

However, cross-border inheritance situations often raise complex tax questions involving:

• The location of assets;
• The deceased's domicile;
• The heirs' residence;
• The existence of probate proceedings in multiple countries;
• Applicable tax rules in each jurisdiction.

The interaction between Brazilian, Swiss and German tax regulations requires a case-by-case assessment to avoid unforeseen liabilities and potential double-taxation issues.

The Importance of International Estate Planning

International succession should not begin after death.

Experience shows that proactive planning can significantly reduce legal disputes, administrative burdens and unnecessary costs for heirs and beneficiaries.

Measures such as:

• Drafting or updating wills;
• Organizing estate documentation;
• Mapping domestic and foreign assets;
• Reviewing matrimonial property regimes;
• Undertaking tax and succession planning;

can substantially improve legal certainty and facilitate the orderly transfer of wealth across generations.

When assets are located in Brazil, Switzerland and Germany, coordinated assistance from qualified professionals in all relevant jurisdictions becomes a strategic necessity rather than a mere convenience.

Conclusion

Families with assets distributed among Brazil, Switzerland and Germany face legal challenges that extend well beyond traditional probate proceedings.

Jurisdictional issues, conflict-of-law questions, recognition of foreign decisions and international tax considerations all require careful planning and specialized guidance.

Proper international estate planning helps preserve family wealth, reduce risks, minimize conflicts and provide greater certainty for future generations.

In an increasingly globalized world, protecting a family's legacy often requires legal solutions capable of crossing borders.