Undivided inheritance is a phase of the succession process in which the estate left by a deceased person has not yet been partitioned among the heirs. According to Portuguese civil law, undivided inheritance refers to the set of assets, rights, and obligations that make up the deceased’s estate and that are accepted by the heirs, but which have not yet been divided among them.
Definition and Characteristics of Undivided Inheritance
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Opening of Succession:
Undivided inheritance begins with the opening of succession, which occurs immediately after death. At this moment, all the deceased’s assets become the undivided inheritance.
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Indivision of Assets:
During the indivision phase, all heirs have rights over the entirety of the estate, but not over specific parts. The estate is considered a single and undivided whole.
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Administration:
The administration of undivided inheritance is generally done by the “head of household” (cabeça-de-casal), who is the closest heir to the deceased, such as the spouse or eldest child. This person is responsible for managing the assets until partition is carried out.
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Duration:
The inheritance can remain undivided for a maximum period of five years, as stipulated in article 2101 of the Civil Code. This deadline can be renewed by agreement between the heirs.
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Right to Partition:
Any heir has the right to demand partition of the inheritance. Partition can be done by agreement between heirs or, in the absence of consensus, through a judicial inventory process.
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Tax Obligations:
During indivision, the inheritance continues to have tax obligations, which must be fulfilled by the heirs. The undivided inheritance is assigned a tax identification number (NIF) for this purpose.
Undivided inheritance ends with partition, the moment when assets are divided among heirs according to their shares, and each heir acquires specific rights over the assets assigned to them.