About Trusts Law in Funchal, Portugal
The concept of Trusts, as understood in common law countries, does not exist in the Portuguese legal system, there is no equivalent concept to trust in Portugal. Nevertheless, there's a way to structure similar arrangements using other instruments recognized by the Portuguese law such as donations, wills, and corporate structures.
Why You May Need a Lawyer
Despite the absence of formal trust law in Portugal, structuring a similar arrangement can be complex and requires a deep understanding of Portuguese law. A lawyer can help interpret the law correctly, advise on the best legal instruments to use, and navigate through the process. This help is also crucial when dealing with cross-border estates, inheritance tax issues, and protection of assets.
Local Laws Overview
Portugal has rigorous laws regarding donations and inheritance, which are strictly regulated. The law also provides for mandatory heirs - spouse, descendants, and ascendants, who cannot be disinherited. Inheritance Tax ("Imposto do selo") may be applicable to donations and inheritances. It's necessary to understand how these laws could affect your estate planning and asset protection.
Frequently Asked Questions
1. Can I set up a trust in Portugal?
No, Portuguese law does not recognize the establishment of trusts. However, there are other legal instruments to achieve objectives similar to those of a trust.
2. What are the alternatives to trusts in Portugal?
Some alternatives used to accomplish similar objectives of a trust are establishment of corporations, donations or wills. An experienced lawyer can provide guidance on the best solution in each case.
3. Is there inheritance tax in Portugal?
Yes, the inheritance tax ("Imposto do selo") may be applicable to donations and inheritances.
4. Can I disinherit my children in Portugal?
No, Portuguese law protects the rights of certain individuals, including offspring, who are considered mandatory heirs and cannot be disinherited.
5. How can I protect my assets in Portugal?
Due to the complexity of the Portuguese law, seek advice from a qualified lawyer. They can guide you through the best options available according to your specific situation.
Additional Resources
Portugal's Autoridade Tributária e Aduaneira (Tax and Customs Authority) provides resources and information about taxes related to donations and inheritances. The Ordem dos Advogados (Portuguese Bar Association) can provide qualified lawyers specialized in this area.
Next Steps
If you are in need of legal assistance relating to trusts in Funchal, Portugal, it’s recommended to hire a local lawyer with expertise in Portuguese inheritance and tax laws. Seek referrals and arrange consultations with lawyers to discuss your case and choose the one you feel most comfortable with to guide you in the process.
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