Successions and wills

When a person dies, their estate passes to their heirs. Until the succession is processed and the declaration of heirs is registered, the assets remain in the deceased's name and cannot be sold, mortgaged or encumbered.

Testate succession: exists when the deceased left a will. Uruguayan law recognizes two main forms: - Open will: executed before a notary public and witnesses. The most common form. - Closed will: the testator submits their dispositions in a sealed envelope before a notary and witnesses, who authenticate the envelope without knowing its contents. Even when a will exists, the forced heirship share (legítima) of forced heirs must be respected. Intestate succession: when there is no will, the law determines who inherits and in what order: - First, descendants (children and, by representation, grandchildren). They exclude ascendants and collateral relatives. - In the absence of descendants, ascendants share with the surviving spouse. - In the absence of descendants and ascendants, the surviving spouse inherits. - Failing all the above, collateral relatives (siblings, nephews/nieces) inherit. Additionally, the surviving spouse has a right to the spousal share as a forced allocation when they do not receive enough through community property or other entitlements. A partner in a judicially recognized cohabiting partnership (Law 18.246) has comparable inheritance rights.

The forced heirship share (legítima) is the portion of the estate that the law mandatorily reserves for forced heirs. If there are descendants: - One child: one half. - Two or three children: two thirds. - Four or more children: three quarters. If there are no descendants, ascendants are forced heirs entitled to one half of the estate.

The Real Estate Transfer Tax (ITP) applies to transferred properties at differentiated rates depending on the relationship with the deceased: - 3% for heirs and legatees in direct line (ascendants, descendants) and spouse. - 4% for all others (collateral relatives and unrelated parties). The base is the real value of the property as determined by the Dirección Nacional de Catastro, adjusted by the applicable coefficient. The tax accrues at death and is settled when the declaration of heirs or estate distribution is executed.

1. Gathering documentation (death certificate, wills, title deeds, cadastral references, civil registry records). 2. Filing before the competent Court. 3. Declaration of heirs. 4. Inventory and valuation. 5. Settlement of debts and taxes. 6. Estate distribution and assignment. 7. Registration.

A straightforward succession takes 6 to 12 months; complex ones take longer. Costs include professional fees, court fees, ITP, certificates and registration expenses.

Acting before death simplifies the process and reduces costs. We advise on drafting wills, corporate structures, civil-law trusts (fideicomisos), donations with reserved usufruct and family business protocols.

If you need to handle a succession or would like to plan ahead, reach out to us.