Colombia Forum

fecherklyn
Joined 2015
Posts: 1381

5 years ago

Inheritance & Estate Planning for expats in Colombia

5 years ago

The forum often receives queries from resident expats asking what happens to their Colombian assets if they die in Colombia. As the subject is complex, I have often thought the readers must frequently “log-out” as bewildered as they were when they started. Thus when I received the following Legal Bulletin from Robledo & Higgs, I thought it could interest some forum members as it clearly sets out the fundamental rules which are themselves an essential stepping stone to reviewing each individuals own situation and requirements.

I personally have wills covering my assets in countries outside Colombia and a Trust for my assets in Colombia.

INHERITANCE & ESTATE PLANNING IN COLOMBIA
March 2019

If you own assets in Colombia – such as real property, bank account/s, shares or other investments - your death will have legal consequences regarding those assets. If you are a foreigner, then you may already have arrangements in place in your country of origin, such as a Will or a Trust. Colombian law will not recognize those arrangements when it comes to who receives your Colombian estate in the event of your death, which would be subject to Colombian civil laws that strictly regulate who can receive it. It is therefore advisable that you put in place legal arrangements that will be recognized in Colombia, in respect of your Colombian estate.

Your Colombian Estate

Having a spouse or permanent partner further complicates the distribution of your assets, particularly if you married your spouse outside of Colombia, or if you have been living with your partner in Colombia for more than 2 years. In Colombia, your estate that is available to distribute to your heirs following your death is determined by the totality of your assets, less your debts, less the proportion your spouse may be entitled to (which will vary depending on the nature of the relationship or the presence of prenuptial agreements).

Dying intestate

If you die intestate (that is, without any arrangement in place), then your estate will be distributed in the following order - to:

1. Your children (by blood or formal adoption);
2. Your parents or grandparents;
3. Your siblings and surviving spouse;
4. Your nieces/nephews;
5. The Colombian Government.

It is important to note that a subsequent category will only be considered when a person does not exist in a preceding category, and that deceased heirs will be represented by their offspring.

What about a Will?

Testamentary Wills do exist in Colombia and this is one way you can have more control over the distribution of your assets in the event of your death. However, this is not definitive. Although Law 1934 of August 2018 did seek to introduce more flexibility in this space, it remains the case that you must leave 50% of your Colombian estate to your children, or if childless, to your parents or grandparents. Only if you have no children, parents or grandparents can you freely distribute your estate according to your wishes.

What about a Trust?

We recommend creating a trust arrangement in respect of your Colombian assets. This structure gives you the flexibility during your life to decide who will receive which of your Colombian assets in the event of your death. We specialize in helping you manage your assets effectively now, so it is not left until after you have gone.

Source: Robledo & Higgs SAS is a Colombian law firm specializing in legal advice for foreigners. We are committed to helping our clients make informed decisions. For a complimentary consultation please visit www.robledohiggs.com or contact us at [email protected].

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