Fideicommissary substitution refers to a legal arrangement in which a testator leaves property to a first heir with the requirement that it be passed on to a second heir after the first heir’s death. In other words, the first heir is not allowed to retain the property for themselves, but must instead transfer it to the second heir in accordance with the testator’s instructions.
Fideicommissary substitution is a legal arrangement in which a person (the testator) leaves property to a beneficiary (the fiduciary), with the condition that the property will be passed on to another beneficiary (the fideicommissary) after the fiduciary’s death. For example, a wealthy man may leave his estate to his wife, with the condition that after her death, the estate will be passed on to their children. In this case, the wife is the fiduciary and the children are the fideicommissaries. Another example is a person leaving a house to a friend, with the condition that after the friend’s death, the house will be passed on to a charity. In this case, the friend is the fiduciary and the charity is the fideicommissary. These examples illustrate the functioning of fideicommissary substitution. The fiduciary is granted temporary ownership of the property, but they are not allowed to dispose of it as they wish. Instead, they are obligated to pass it on to the fideicommissary after their death. This legal arrangement is often utilised in estate planning to ensure that property remains within a family or is utilised for a specific purpose.
A fideicommissary substitution is a legal arrangement where a property owner designates a beneficiary to inherit the property after the death of the initial beneficiary.
The initial beneficiary receives the property but is required to pass it on to the designated beneficiary upon their death.
Yes, it is a legal arrangement that is recognized in many countries.
Any property owner can create a fideicommissary substitution.
A fideicommissary substitution can help ensure that property remains within a family or designated group of individuals.
Yes, it can be changed through a legal process.
The designated beneficiary can take legal action to enforce the fideicommissary substitution.
Yes, it can be challenged if there is evidence of fraud or coercion.
There may be tax implications, and it is recommended to consult with a tax professional.
You can create a fideicommissary substitution through a legal document, such as a will or trust, with the assistance of a lawyer.
This site contains general legal information but does not constitute professional legal advice for your particular situation. Persuing this glossary does not create an attorney-client or legal adviser relationship. If you have specific questions, please consult a qualified attorney licensed in your jurisdiction.
This glossary post was last updated: 17th April 2024.
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