Latest news and stories about inheritance law in property in Portugal for expats and residents.
The government has submitted a legislative proposal to Parliament aimed at resolving issues with undivided inheritances (heranças indivisas). If approved, the law would allow a single heir, a spouse married under a community of property regime, or an executor to unlock the sale of inherited properties. The initiative is part of a broader effort to increase housing supply in the market.
A new government proposal aims to reform inheritance laws by strengthening the power of testators to define how their assets are divided among heirs. The change would allow individuals to specify which specific properties or assets go to which heirs within the legitimate portion (legítima), a restriction that currently limits estate planning. Property owners should note that the reform also seeks to reduce the number of undivided inheritances (heranças indivisas) that often lead to legal deadlocks.
An analysis of the right to determine asset distribution after death, highlighting its role in fostering family trust and its potential economic impact on housing and regional investment.
The government has approved new regulations to resolve undivided inheritances, aiming to boost housing supply and enhance fire prevention efforts.
In the context of a housing crisis and where undivided inheritances have contributed to the degradation of real estate assets, the Government wants to carry out a “profound reform of inheritance law”.
The Government has submitted a legislative proposal to parliament allowing a single heir, a spouse married under community of property, or an executor to initiate the judicial sale of real estate from undivided inheritances. This measure aims to address properties that have remained undivided for over two years due to a lack of agreement among heirs, as part of a broader legislative package to increase housing supply. The process includes judicial oversight, expert property valuations, and electronic auctions to ensure transparency, while granting heirs the right of redemption to keep the property within the family. Additionally, the proposal introduces reforms to the Civil Code, including the role of an executor with powers of partition and new rules for the administration of inheritances to reduce litigation and facilitate the distribution of assets.
The government also intends to change the rules for the executor of an estate, strengthening the powers of administration and liquidation of the inheritance.
A single heir will be able to force the sale process of an inherited property if, after two years from the allocation of the inheritance, there is no agreement between the heirs. This is the main novelty that may be introduced into the law if the Government's proposal for the creation of a new process is approved.
The Government wants spouses of heirs who married under a community of property regime to also be able to initiate the sale of a property if there is no agreement between the heirs two years after the inheritance is assigned. The increase in negative assessment of the Government coincides with the strengthening...
Until now, unanimity among all heirs was required to sell a property, but the Government has approved changes so that, after a two-year deadlock in the division of the inheritance, a single heir is sufficient to unlock the sale of the property. Even so, the Prime Minister guarantees that “all heirs will, naturally, maintain the right to participate in the sale process”.
A single heir can end litigation that has been ongoing for more than two years. All parties are notified and have a right to the money.
The Lisbon Property Owners Association raises doubts about the change to undivided inheritances and states that it “may be unconstitutional”. Luís Menezes Leitão warns of potential litigation issues.
PRESS REVIEW | The measure aims to increase the supply of houses on the market and improve the management of rural land
