The most common figure in Guatemala for disposing of a person's assets after death is the will. However, it is known that testamentary and intestate succession processes in Guatemala are slow, bureaucratic, and expensive.
They can last from 1 to 5 years, and in special cases up to 10 years.
It's understandable that the person who wishes to inherit is concerned that after their death, their heirs will not be burdened with heavy expenses and long, tedious processes.
Consequently, many people have opted for other alternatives that are more practical and faster, and that in turn produce the same result as a testamentary (with a will) or intestate (without a will) succession process.
These alternatives consist of arranging and “distributing” assets before death, rather than after.
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What is the solution?
To be able to transfer movable property (vehicles, jewelry, money, among others) or immovable property (properties, farms, houses, apartments, and the like), the most commonly used instrument is the purchase and sale agreement or donation.
It's possible you're considering that this doesn't solve the problem, as this type of contract transfers ownership, leaving the previous owner unprotected because they no longer possess or can use their assets and property.
The foregoing is resolved through a sale and purchase agreement or donation, with a reservation of “lifelong usufruct”.
How does it work?
Life Estate.
With the figure of usufructo vitalicio, the person transfers their assets to people of interest through purchase agreements or donations, but these latter individuals can use the assets only when the owner passes away.
Example:
Ana has a house where she lives with her two children. Upon her death, she wants the property to pass to them. However, she does not want to leave a will because she wants to avoid her children incurring unnecessary expenses and time investing in a probate process. Furthermore, she does not want her children to own the house while she is alive. Consequently, she seeks legal advice lawyers in Guatemala To get the best solution, she finally decides to donate the house to her two children, but she reserves the usufruct for life (use of the property until she passes away); in such a way that when she is no longer here, the property passes to their names, and not before.
What happens if I have my assets registered under a Corporation?
It is quite common for parents to decide to put all their assets in the name of a corporation to facilitate asset management. In this case, the previous example is applicable; however, for convenience, it is recommended that the donation or sale contract with reservation of lifetime usufruct be on the shares rather than on the movable and immovable property.
Conclusion
The figure of usufruct is easy to apply and is considerably more favorable than a will. It is common that due to ignorance it is not used, however, it is not as complicated as it is considered. Even if the person has already made a will, this strategy can still be applied. It is important to mention that you will need the advice of Lawyers in Guatemala.
