Planning Your Estate in Portugal: Lessons from Our Journey
When my husband Alan and I, Leslie, made the leap from the United States to the stunning island of Madeira over three years ago, we were ready for a fresh start. Like so many expats, we dreamed of a life filled with sunshine, ocean views, and a slower pace that let us truly savor every moment. But what we didn’t realize, as we navigated the transition to our new life in Portugal, was that one of the biggest adjustments would involve preparing for what happens after we’re gone.
Our situation was a little complicated—blended families often are. Alan and I both came into our marriage with lives and loved ones from before. Alan has children from his previous marriages, and together, we have one child: our son, Wolf. Naturally, our top priority was to ensure that, when the time comes, our estate would be handled in a way that reflects what matters most to us.
But that’s where the complications began.
Understanding the Challenge
Here’s what we discovered: under Portuguese inheritance laws, when I (Leslie) pass away, my assets will automatically go to Alan and Wolf equally. That may sound straightforward, but when Alan eventually passes, those assets—originally mine—would be distributed equally among all of his children, including those from his previous marriages. While that’s the legal default, it didn’t reflect our wishes.
Our goal was to ensure that Wolf, our shared child, received the majority of my estate. After all, Alan’s other children will inherit from both their father (Alan) and their mothers, while Wolf would not inherit anything from Alan’s previous partners. To make things fair and straightforward, we needed to plan carefully to ensure that Wolf was provided for according to our intentions.
We also learned that, under Portuguese law, if someone dies without a will, the estate doesn’t automatically go to their spouse. If their parents are still alive, and they have no children, the estate would be divided between the parents and the spouse. For some, that might be fine—but for us, and likely for many of you, that could cause unintended complications.
Finding a Solution
After plenty of research and guidance, we found a solution that worked for us. We created two wills: one in the United States and one in Portugal. Our US wills reflected our specific wishes about how we wanted our assets divided, particularly with our blended family in mind. However, as residents of Portugal, we also needed Portuguese wills to ensure our wishes were legally enforceable here.
The key was making sure our Portuguese wills clearly referenced and aligned with our US wills. This ensured that the inheritance laws of the United States—rather than Portugal’s forced heirship rules—would govern how our estate was distributed. With this approach, we were able to prioritize Wolf while ensuring that Alan’s other children would still inherit from their father, as intended.
Now, we want to help you understand what you need to know for yourselves. This isn’t really about our complicated story. Every family is unique, and your priorities, relationships, and assets will shape your own estate planning decisions.
What You Need to Know About Estate Planning in Portugal
If you’re an expat living in Portugal, here are some important points to consider:
Forced Heirship Laws Are the DefaultPortuguese inheritance laws require that a portion of your estate automatically go to certain family members, such as your spouse, children, or parents. If your wishes differ from these default rules, you’ll need to create a legally binding will to ensure your assets are distributed according to your preferences.
You Can Choose Which Law Governs Your EstateThanks to the EU Succession Regulation (No. 650/2012), expats can elect for the inheritance laws of their home country to apply to their estate. This is especially useful for those from countries where forced heirship isn’t a legal requirement. However, this must be explicitly stated in your will—otherwise, Portuguese law will take precedence.
You Might Need More Than One WillIf your assets are spread across multiple countries, you may need wills in each of those jurisdictions. For us, creating Portuguese wills that referenced our US wills was the best way to protect our wishes and ensure compliance with local laws.
Inheritance Taxes in Portugal Are Favorable—but NuancedThe good news is that Portugal doesn’t have an inheritance tax. Immediate family members—such as spouses, children, and parents—are also exempt from the 10% stamp duty that applies to other beneficiaries. That said, if you have assets in multiple countries, you may still face tax obligations elsewhere, making professional guidance essential.
Why You Should Work with an Expert
We didn’t figure this out alone—and neither should you. The legal landscape surrounding estate planning in Portugal is complex, especially for expats. That’s why we turned to Sandra Fernandes of SFJ Consultancy. Sandra specializes in helping expats navigate Portuguese inheritance laws, create wills, and plan their estates with confidence and clarity.
Sandra and her team guided us through the process, helping us craft a plan that fit our unique family dynamic. She answered all of our questions, explained the legal nuances, and ensured that our wishes would be honored both in Portugal and abroad.
If you’re ready to take the next step, we can’t recommend Sandra enough. Her expertise will save you time, stress, and the risk of unintended legal complications.
📧 Contact Sandra Fernandes: Sandra.jfernandes@sfj.pt
Your Next Steps
To make things even easier, we’ve included a short video where Sandra explains the basics of estate planning for expats in Portugal. Watch it to get a clearer sense of your options and start thinking about what makes the most sense for your situation.
[Insert Video Link Here]
Whether your story is as complex as ours or far simpler, the most important thing is to take action. Without a will in place, your estate will be divided according to Portuguese law—and that may not align with your wishes.
By working with someone like Sandra and getting your wills in order, you’ll:
Protect your loved ones.
Ensure your assets are distributed according to your wishes.
Avoid unnecessary legal complications.
Final Thoughts
Our journey to creating an estate plan wasn’t easy, but the peace of mind it brought us was worth every step. We know now that our son Wolf will be taken care of in the way we intended, and that’s a gift we’re proud to give him.
Now it’s your turn. Whether you’re new to Portugal or have been here for years, take the time to plan for the future. It’s not just about protecting your assets—it’s about caring for the people you love and ensuring their lives are made easier, not harder, when the time comes.
So, don’t wait. Reach out to Sandra, watch the video, and start crafting a plan that works for you. Because estate planning isn’t just about what you leave behind—it’s about the peace of mind you gain today.
We Should Have Done This Sooner! It'll Be Fun!
We invite you to join our It'll Be Fun Monthly Online Meetup Group.
Contact us:
Yorumlar