Transfer Bond Certificates After Death in Portugal: Complete Guide
When the holder of Bond Certificates (Certificados de Aforro) and Treasury Certificates (Certificados do Tesouro) passes away, the heirs have the option to request the transfer of ownership or the redemption of the certificates. This article provides a comprehensive guide on how to proceed with such requests, including the necessary documents, requirements, and steps involved.
Table of Contents
- Who Can Request?
- When to Request?
- Documents and Requirements
- How to Request
- Cost of Requesting
- Example Transfer
- Conclusion
Who Can Request?
The heirs of the deceased holder of Bond (aforro) Certificates and Treasury Certificates are eligible to request the transfer of ownership or redemption of the certificates. Heirs can include:
- Spouse or civil partner
- Children or descendants
- Parents or ascendants
- Siblings or their descendants
- Other relatives up to the fourth degree
The head of the family, known as the “cabeça-de-casal,” typically initiates the process. The cabeça-de-casal is usually the closest relative, such as the spouse or eldest child. This person manages the estate and oversees the distribution of assets to the rightful heirs.
The inheritance process can be complex, and it’s essential to understand the legal requirements and procedures to ensure a smooth transfer of ownership. Legal representatives or persons acting under a mandate or power of attorney can also request the transfer on behalf of the heirs.
When to Request?
Heirs can request the transfer of ownership or redemption of Bond (aforro) Certificates and Treasury Certificates within specific timeframes following the certificate holder’s death. If the request is not made within these periods, the value of the certificates will be transferred to the Public Debt Regularization Fund (Fundo de Regularização da Dívida Pública, FRDP). The specific timeframes are as follows:
Bond (aforro) Certificates Series A and B:
- Within 5 years if the holder passed away before May 4, 1997.
- Within 10 years if the holder passed away after May 4, 1997.
Bond (aforro) Certificates Series C, D, E, and F:
- Within 10 years from the date of their redemption.
Treasury Certificates:
- Interest: Within 5 years from the maturity date.
- Principal: Within 10 years from the maturity date.
These deadlines are crucial to avoid the automatic transfer of the certificate value to the FRDP. Therefore, it is essential to initiate the process as soon as possible to ensure the heirs can claim their rightful inheritance.
Documents and Requirements
To request the transfer of ownership of Bond (aforro) Certificates and Treasury Certificates, the following documents must be submitted:
Identification Documents:
- ID and taxpayer number of the deceased.
- ID and taxpayer number of the heirs.
Required Forms:
- Form 706: Signed by all heirs or their representatives. Signatures must be notarized or authenticated by a registrar, notary, lawyer, or solicitor, and submitted at a CTT store. Alternatively, heirs can sign in person at a CTT store in the presence of a counter staff member.
Inheritance Documents:
- Notarial deed of inheritance qualification or simplified inheritance qualification and records.
- Free transmission participation proof (Form 1) from the Tax and Customs Authority, listing the certificates as of the date of death. Non-direct heirs must present proof of tax payment.
- Physical titles (paper certificates) for Series A, B, C, and D Bond Certificates. If these are not available, a justification must be provided using Form 706.
Bank Account Information:
- Bank document with the IBAN of each heir’s account if they wish to redeem the certificates.
Representation Documents:
- If an heir is represented by a proxy, the proxy must present a photocopy of their ID and a properly authenticated power of attorney with specific powers for the act. If an heir is represented by a lawyer, the lawyer must present a copy of their professional card.
Other Legal Documents:
- Will, if it exists.
- Partition deed, if it exists, requiring the involvement of the heirs to whom the certificates were allocated.
- Judicial certificate, if it exists, accompanied by relevant parts of the inventory process – such as the declaration of the head of the family, list of assets, meeting minutes, partition map, conclusion, or similar, when the partition is judicially processed, involving only the heirs to whom the certificates were allocated.
Minor or Incapacitated Heirs:
- Notarial partition deed preceded by judicial authorization (cf. Art. 1889, No. 1 of the Civil Code) or;
- Certificate extracted from the judicial inventory process, as mentioned above, containing the allocation of savings products and the distribution of these assets among the heirs, with explicit mention of the partition’s approval and final judgment or;
- In the case of a single minor or incapacitated heir, where the total is allocated to them, the legal representatives must sign Form 711, confirming no extrajudicial partition without prior judicial authorization, that the inheritance/legacy has no charges, and agreeing to the registration and immobilization of the certificates until the incapacity ceases.
- Form 701-A: Completed by the legal representatives with copies of their ID documents, taxpayer number, proof of address, and occupation/employer.
Special Cases:
For minor, interdicted, or incapacitated heirs, the same documents as listed above apply. The legal representatives must ensure all documents and necessary approvals are obtained and presented.
Gathering all the necessary documents can be time-consuming, but it is essential for a smooth and successful transfer of bond (aforro) certificates after death.
How to Request
To request the transfer of ownership or redemption of Bond (aforro) Certificates and Treasury Certificates, visit a CTT store or the public service desk of the Agency for Treasury and Public Debt Management (Agência de Gestão da Tesouraria e da Dívida Pública, IGCP).
Steps:
- Check Required Documents: Ensure you have all necessary documents for the inheritance qualification process.
- Schedule an Appointment: Visit the relevant service desk to schedule an appointment for inheritance qualification and registration. Appointments can also be scheduled online through the Siga portal and the mobile app SigaApp (Android/iOS).
- Submit Documents: If scheduling in person, submit all required documents at the time of the appointment. If scheduling online, mail the necessary documents to the service desk where the appointment is scheduled.
- Document Review: The service desk will review the submitted documents. Additional documents may be requested, and these should be provided at least five business days before the scheduled appointment. If documents cannot be provided on time, a new appointment will be set.
- Finalize Process: On the appointed day, after signing the necessary documents, the assets will be registered in the names of the heirs.
Additional Services:
- The service desk can notify the tax authorities of the death and provide a list of assets.
- Request a tax identification number for the inheritance if one has not already been assigned.
These steps ensure that the transfer bond (aforro) certificates after death is completed correctly and efficiently. Following the correct procedures and providing all required documents will help avoid delays and complications.
Cost of Requesting
The cost of requesting the transfer of ownership or redemption of Bond (aforro) Certificates and Treasury Certificates varies. Please refer to Instruction No. 1 of 2024 from the Agency for Treasury and Public Debt Management (IGCP) for detailed information on the applicable fees.
Payment Methods:
- Cheque or Postal Order: Payable to the Agency for Treasury and Public Debt Management (IGCP, E.P.E).
- Multibanco: Payment through ATM.
The fees cover administrative costs and any additional services provided by the IGCP or CTT stores. It’s essential to budget for these costs and ensure you have the necessary funds available when submitting your request.
Example Transfer
Scenario:
Maria, a Portuguese citizen, passed away, leaving behind several Bond (aforro) Certificates (Series C) worth €50,000. Her heirs, João and Ana, wish to transfer the ownership of these certificates.
Step-by-Step Process:
- Identification and Documentation:
- João and Ana collect Maria’s ID and taxpayer number.
- They gather their own ID and taxpayer numbers.
- Completion of Forms:
- João and Ana fill out Form 706, signing it in the presence of a notary for authentication.
- Inheritance Qualification:
- They obtain the notarial deed of inheritance qualification and a copy of the free transmission participation proof (Form 1).
- Certificate Submission:
- They locate the physical certificates (Series C) and attach them to the application. If the certificates are lost, they provide a justification in Form 706.
- Bank Information:
- João and Ana provide their bank documents with IBAN for the redemption process.
- Submission:
- They visit a CTT store with all the documents and submit their request for transfer of ownership.
- Review and Approval:
- The CTT staff review the documents and process the transfer, updating the ownership records.
- Notification:
- João and Ana receive confirmation of the transfer, and the certificates are now registered in their names.
Key Takeaways:
- Proper documentation is crucial for a smooth inheritance qualification process.
- Scheduling appointments in advance can help manage the timeline effectively.
- Legal advice and assistance from a notary can simplify complex cases.
This example demonstrates the importance of following the correct procedures and ensuring all required documents are submitted to facilitate the transfer bond (aforro) certificates after death.
Conclusion
Transferring Bond (aforro) Certificates and Treasury Certificates after the death of the holder involves several critical steps. By understanding the requirements, gathering the necessary documents, and following the outlined procedures, heirs can successfully manage and transfer the certificates left by the deceased. Whether opting for the transfer of ownership or the redemption of certificates, it is crucial to adhere to the stipulated timeframes and legal obligations to avoid complications and ensure a smooth transition of assets.
Summary
- Who Can Request?
- The heirs, including spouse, children, parents, siblings, or other relatives up to the fourth degree, can request the transfer.
- When to Request?
- Heirs can request the transfer within 5 or 10 years, depending on the series and maturity of the certificates.
- Documents and Requirements:
- Necessary documents include identification, inheritance qualification forms, and bank account information.
- How to Request:
- Requests can be made at a CTT store or IGCP desk, with the proper documentation and completed forms.
- Cost of Requesting:
- Refer to IGCP’s instructions for detailed fees and payment methods.
By adhering to these guidelines, heirs can ensure a smooth and efficient transfer bond (aforro) certificates after death, honoring the legacy of the deceased and securing their rightful inheritance.
Also Read: How to Buy Bond Certificates (Certificados de Aforro) in Portugal?
Source: Eportugal
Disclaimer: This post is for educational purposes only and reflects our understanding of the topic. Please seek professional advice before making any decision.