Use of Testament in Panama
First of all, let’s define what a testament is:
It is a legal instrument by which a person expresses his will on the fate of his assets and rights after his death. The set of assets to be distributed is called inheritance.
In general, a testament does not have an expiration date, except when the testator revokes it or when the document does not meet the legal requirements, which causes its nullity. In Panama, Law 2 of August 22, 1916 of the Civil Code, sets forth the guidelines for the use of testaments.
In general, the testament determines who will be the beneficiaries of the assets of the deceased, or the use of them. Once the death occurs, his will in the testament must be confirmed through a succession process.
In Panama there are two types of succession process:
- “Testado” (when there is a testament according to the Law), or
- “Intestado” (There is not testament or it does not comply with the Law).
In a testament you must always have a witness who meets the requirements of Article 713 «Distribution of Assets in Testament».
The Law distinguishes two ways of distributing assets in a testament:
- Universal Title: when all the assets, rights and obligations are transferred in percentages to each heir.
- Singular or Particular Title: when a property or particular right is transferred to one or several persons.
It is important to point out that the testator will not always be able to leave his assets to whomever he wishes, since there are legal obligations with the descendants, ascendants and spouse if it is the case, since there are the so-called forced heirs.
If you need advice, do not hesitate to contact us, at Ba-Lawfirm.com, we have specialized Panamanian lawyers, who have solutions to your requirements.
If you need advice, please contact us at ba-lawfirm.com or through our email consultas@ba-lawfirm.com, we are ready to help you.
