Offshore for Succession: What the Law Allows in 2026

An offshore company does not replace succession: the inheritance passes to the heirs as soon as it opens (Civil Code, art. 1,784), and the law of the deceased's last domicile governs it, whatever the location of the assets (LINDB, art. 10). A structure can organize the transfer of assets abroad, but it does not displace the forced share or the tax.

This guide separates what the law allows from what the market tends to promise. Each rule was checked against the legal text. Where the answer depends on the law of another country or on state regulation, the text says "consult," with no estimate.

Is it possible to avoid probate with an offshore company?

Not in the sense of succession ceasing to exist. For someone who lives in Brazil, succession opens at the deceased's last domicile (Civil Code, art. 1,785) and follows Brazilian law, whatever the nature and location of the assets (LINDB, art. 10). The shares or quotas of the offshore company are assets of the estate and go on the list of assets in the probate (Code of Civil Procedure (CPC), art. 620, IV, "e").

What changes with good planning is how each asset is transferred and how prepared the family is. A well-designed structure can reduce conflict and deadlock, especially for assets abroad, but it does not replace the Brazilian procedure or the tax. Anyone who promises to "escape probate" ignores what is in the articles above.

What does Brazilian law say about the succession of someone who lives here?

Four rules define the room to maneuver:

• •Immediate transfer. Once succession opens, the inheritance passes immediately to the legal and testamentary heirs (Civil Code, art. 1,784).
• •Forced share. Half of the estate belongs by full right to the forced heirs (art. 1,846). Where there are forced heirs, the testator may dispose only of the other half (art. 1,789).
• •Jurisdiction. Only the Brazilian courts handle probate and division of assets located in Brazil, even if the deceased is a foreigner or lives outside the country (CPC, art. 23, II).
• •Applicable law. The law of the deceased's domicile governs succession, even for assets abroad (LINDB, art. 10).

In practice: putting assets in an offshore company does not remove the half that is the forced heirs' share. The room for planning lies in the available half and in how the transfer is organized.

How does probate work today, and what deadlines does the law set?

Where there is a will or an interested party who lacks legal capacity, probate is judicial. If everyone has capacity and agrees, probate and division can be done by public deed, with lawyers assisting the parties (CPC, art. 610, §§ 1 and 2). The process must be opened within two months of the opening of succession and concluded within the following twelve months, deadlines the judge may extend (art. 611).

These legal deadlines do not say how long the process takes in practice, and this guide cites no averages because we found no official source. What is known is that probate requires the complete list of all assets, including shares, quotas, and rights (CPC, art. 620, IV). An heir who conceals assets, failing to describe them, loses the right he had over them (Civil Code, art. 1,992). That is why the offshore structure must appear in the family's documentation, not stay hidden.

How does the trust fit into succession?

The trust is the most widely used instrument in international succession planning, and Law No. 14,754/2023 (Lei 14.754/2023) gave it clear tax rules. Under the law, the trust's assets and rights remain under the settlor's ownership after the trust is established and pass to the beneficiary on distribution or on the settlor's death, whichever comes first (art. 10).

Three consequences of the legal text:

• •The change of ownership of the trust's assets is treated as a gratuitous transfer: a donation, if it occurs during life, or a causa mortis transfer, if it results from death (art. 10, § 2).
• •Income and capital gains are considered earned by the owner of the assets and subject to individual income tax (IRPF) under the owner's rules (art. 10, § 3).
• •The settlor or the beneficiary must request from the trustee the resources and information to pay the tax and meet obligations in Brazil (art. 10, § 5).

The law also allows the transfer to be considered as having occurred earlier, if the settlor irrevocably gives up part of the estate (art. 10, § 1). In other words, the trust organizes the transfer, but Brazil still sees the ownership and the tax. For the full design and taxation, read offshore trust for Brazilians and offshore trust: is it worth it?.

How does ITCMD apply to assets abroad?

ITCMD, the state tax on causa mortis transfers and donations of any assets or rights, is provided for in art. 155, I, "a," of the Federal Constitution (CF). For assets abroad, the Constitution says that the power to levy it will be regulated by a complementary law when the deceased owned assets, was a resident or domiciliary, or had the probate processed abroad (art. 155, § 1, III).

In addition, the Senate sets the maximum rates (art. 155, § 1, IV) and, since Constitutional Amendment 132/2023 (Emenda Constitucional 132/2023), the tax will be progressive according to the value of the share, bequest, or donation (art. 155, § 1, VI). The effective rate depends on each state's law, so consult the legislation of the applicable state before projecting any amount.

Donate during life or leave a will?

Both routes exist and have limits in the Civil Code. A donation from an ancestor to a descendant, or between spouses, counts as an advance of what is due by inheritance (art. 544). A donation is void to the extent it exceeds what the donor could have disposed of by will at the time of the gift (art. 549). Descendants who compete in the succession must bring into account the value of donations received, on pain of concealment (art. 2,002).

A will, in turn, allows disposing of all or part of the assets, respecting the forced share (art. 1,857 and § 1). A division made by the ancestor, during life or by last will, is valid as long as it does not harm the forced share (art. 2,018). See the succession planning service to structure these choices together with the company and the trust.

What happens if the structure is not declared?

An undeclared offshore company becomes a liability for the family. Law No. 7,492/1986 (Lei 7.492/1986) punishes with imprisonment of 2 to 6 years and a fine anyone who keeps abroad deposits not declared to the competent federal agency (art. 22, sole paragraph). According to the Central Bank, a resident with assets abroad totaling US$ 1,000,000.00 or more on December 31 must file the CBE between February 15 and April 5 of the following year, with fines of BRL 2,500.00 to BRL 250,000.00.

Individuals also declare to the Federal Revenue Service (Receita Federal) the income and profits of controlled entities abroad, at the 15% rate of Law 14,754/2023 (art. 2, § 1). The compliance and corporate structures routines should be ready before the first transfer. To protect assets without creating a risk of nullity, also read offshore asset protection.

When does it make sense to use an offshore company in succession planning?

It makes sense when there are assets in more than one country, a family business, or a need to define who manages what after death. Also when the family wants to put governance rules in writing, during life. It does not make sense when the goal is to hide assets, disinherit a forced heir beyond what the law allows, or escape tax.

Before starting, check:

1. •The design respects the forced share and the available half.
2. •The trust's and the offshore company's assets appear on the income tax return and on the CBE, when due.
3. •There are clear instructions for the trustee and for the heirs on data and payment of tax.
4. •Lawyers in Brazil and in the structure's country have reviewed the plan, including the local law on succession of the assets there.
5. •The plan was reviewed after changes of residence, marriage, birth of children, or changes in the law.

The offshore company in the BVI is an example of a vehicle used in this design, with its own reporting rules in Brazil.