How to Transfer Bond Certificates in Portugal After Death?
Introduction
Imagine this: Maria, a beloved matriarch, has left behind a legacy in the form of Bond Certificates and Treasury Certificates. These certificates, symbolizing her lifelong savings and financial prudence, now need to be transferred to her heirs. João and Ana, her children, find themselves at a crossroads, unsure of how to navigate the intricate process of inheritance. This story will guide them and you through the detailed steps necessary to transfer bond certificates in Portugal after death.
Who Can Request?
In the heart of Lisbon, João and Ana gathered their courage and the necessary documents to embark on the journey of transferring their mother’s bonds. Heirs like João and Ana, including spouses, children, parents, siblings, and other relatives up to the fourth degree, are eligible to request the transfer of ownership or redemption of Bond Certificates and Treasury Certificates.
The head of the family, or “cabeça-de-casal,” typically initiates this process. Often, this person is the closest relative, such as the spouse or the eldest child, who manages the estate and oversees the distribution of assets to the rightful heirs. João, being the eldest, naturally took on this role.
The inheritance process can be a labyrinth of legal requirements and procedures, making it essential to understand every detail to ensure a smooth transfer. Legal representatives or persons acting under a mandate or power of attorney can also request the transfer on behalf of the heirs, providing a lifeline for those who find the legalities overwhelming.
When to Request?
Timing is everything, as João and Ana soon discovered. They learned that heirs must request the transfer of ownership or redemption of Bond Certificates and Treasury Certificates within specific timeframes following the certificate holder’s death. Missing these deadlines could mean that the value of the certificates would be transferred to the Public Debt Regularization Fund (FRDP), a scenario they were keen to avoid.
For Bond Certificates Series A and B, the request must be made within 5 years if the holder passed away before May 4, 1997, and within 10 years if the holder passed away after that date. For Series C, D, E, and F, the request must be made within 10 years from the date of their redemption.
Treasury Certificates have their own deadlines: interest must be claimed within 5 years from the maturity date, and the principal within 10 years. Understanding these timeframes was crucial for João and Ana to avoid the automatic transfer of the certificate value to the FRDP. Thus, they wasted no time in starting the process.
Documents and Requirements
The first step on their journey involved gathering a mountain of documents. João and Ana meticulously collected the identification documents of both the deceased and themselves, which included IDs and taxpayer numbers. They also needed several forms, including Form 706, which had to be signed by all heirs or their representatives. The signatures needed to be notarized or authenticated by a registrar, notary, lawyer, or solicitor, and submitted at a CTT store. Alternatively, heirs could sign in person at a CTT store in the presence of a counter staff member.
Inheritance documents were another critical piece of the puzzle. They obtained the notarial deed of inheritance qualification or simplified inheritance qualification and records. Additionally, they needed the free transmission participation proof (Form 1) from the Tax and Customs Authority, listing the certificates as of the date of death. Non-direct heirs had to present proof of tax payment.
Physical titles for Series A, B, C, and D Bond Certificates had to be located. If these were not available, a justification needed to be provided using Form 706. João and Ana also ensured they had a bank document with the IBAN of each heir’s account, as they wished to redeem the certificates.
For heirs represented by a proxy, the proxy had to present a photocopy of their ID and a properly authenticated power of attorney with specific powers for the act. If an heir was represented by a lawyer, the lawyer had to present a copy of their professional card.
Other legal documents, such as a will or partition deed, were necessary if they existed. If the partition was judicially processed, a judicial certificate accompanied by relevant parts of the inventory process was needed. For minor or incapacitated heirs, a notarial partition deed preceded by judicial authorization or a certificate extracted from the judicial inventory process was required.
Gathering all these documents was time-consuming, but João and Ana knew it was essential for a smooth and successful transfer of the bonds in Portugal after death.
Also read: How to Buy Bond Certificates (Certificados de Aforro) in Portugal?
How to Request
Armed with their documents, João and Ana visited a CTT store to initiate the transfer of ownership. The process began with checking the required documents to ensure they had everything needed for the inheritance qualification process. They then scheduled an appointment at the relevant service desk, which could also be done online through the Siga portal or the mobile app SigaApp (available on Android and iOS).
Submitting the documents was the next step. If the appointment was scheduled in person, they submitted all required documents at the time of the appointment. If scheduled online, they mailed the necessary documents to the service desk where the appointment was scheduled. The service desk would then review the submitted documents. If additional documents were requested, they needed to be provided at least five business days before the scheduled appointment. If João and Ana couldn’t provide the documents on time, a new appointment would be set.
On the appointed day, after signing the necessary documents, the assets would be registered in the names of the heirs. The service desk also offered additional services, such as notifying the tax authorities of the death, providing a list of assets, and requesting a tax identification number for the inheritance if one had not already been assigned.
Following these steps ensured that the transfer of bonds in Portugal after death was completed correctly and efficiently. By adhering to the correct procedures and providing all required documents, João and Ana avoided delays and complications.
Cost of Requesting
The cost of requesting the transfer of ownership or redemption of Bond Certificates and Treasury Certificates was another consideration for João and Ana. They referred to Instruction No. 1 of 2024 from the Agency for Treasury and Public Debt Management (IGCP) for detailed information on the applicable fees.
Payment could be made via cheque or postal order, payable to the Agency for Treasury and Public Debt Management (IGCP, E.P.E), or through Multibanco, an ATM payment method. These fees covered administrative costs and any additional services provided by the IGCP or CTT stores. João and Ana ensured they had the necessary funds available when submitting their request.
Example Transfer
To illustrate the process, let’s follow João and Ana’s journey in more detail. Maria, their mother, left behind Bond Certificates (Series C) worth €50,000. João and Ana wanted to transfer the ownership of these certificates.
Identification and Documentation:
João and Ana began by collecting Maria’s ID and taxpayer number, along with their own IDs and taxpayer numbers.
Completion of Forms:
They filled out Form 706, signing it in the presence of a notary for authentication.
Inheritance Qualification:
They obtained the notarial deed of inheritance qualification and a copy of the free transmission participation proof (Form 1).
Certificate Submission:
They located the physical certificates (Series C) and attached them to the application. If the certificates were lost, they provided a justification in Form 706.
Bank Information:
João and Ana provided their bank documents with IBAN for the redemption process.
Submission:
They visited a CTT store with all the documents and submitted their request for transfer of ownership.
Review and Approval:
The CTT staff reviewed the documents and processed the transfer, updating the ownership records.
Notification:
João and Ana received confirmation of the transfer, and the certificates were now registered in their names.
Key takeaways from their experience highlighted the importance of proper documentation for a smooth inheritance qualification process. Scheduling appointments in advance helped manage the timeline effectively. Legal advice and assistance from a notary simplified complex cases, ensuring a smooth transfer of bonds in Portugal after death.
Conclusion
Transferring bonds in Portugal after death 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.
João and Ana’s journey through the maze of paperwork and legal procedures exemplifies the importance of diligence and preparedness. With each step, they honored their mother’s legacy and secured their inheritance, proving that with the right knowledge and persistence, the process of transferring bonds in Portugal after death can be navigated successfully.