Requirements to Collect Inheritance: Steps, Documents and MORE

In this article you will find information corresponding to the Requirements to collect the inheritance. It is very important that you pay attention, since many times we find ourselves in this situation and we do not know how to proceed.

As you read, your doubts will be clarified. We will also talk about how to carry out the procedure step by step, who can do it, how the inheritance is distributed, what are the AFPs and much more.

How can the inheritance be collected in Chile?

To collect the inheritance in Chile, it is necessary to approach the corresponding office in the Civil registration. This is an administrative procedure that produces the arrival of the goods that belonged to the dead person to their legal beneficiaries. And of course meet the Requirements to collect the inheritance in Chile.

It is important to note that it is essential to carry out this step, because it forms the hereditary community and that in the long term it allows your heirs to dispose of your inheritance as they see fit or as it is legally established.

Step by Step

The steps to Collect Inheritance in Chile are described below:

1. As a first step, what is contained in the Effective Possession should be reviewed (explained later).
2. Make the request for Effective Possession.
3. Present the requirements for Effective Possession.
4. Carry out the inventory, based on legal stipulations.
5. Know the costs and deadlines for this process.
6. Anticipate possible eventualities during the procedure.

For detailed information on this, go to this link.

Documents Needed to Collect the Estate

There are a number of documents that are necessary to present as Requirements to collect the inheritance. For this you must go to the respective office. These are the following:

In addition to the above, if the amount of the associate’s account is greater than 5 AHU (Monthly tax unit), you must record the following: Effective Possession, this is acquired in the Civil Registry Service (in the case of a will), or in the Civil Court.

Who can do it?

This procedure is done under the figure of Effective Possession. Which can make one or more heir members. They can do it personally or through a representative to represent them. All this in order to legally use the inherited assets (home, car, money saved, among others), which were left by the deceased person (the deceased).

If for any reason the inheritance left was not settled in a will, the diligence is carried out in the Civil Registry. Presenting the Requirements to collect inheritance. No need to hire an attorney.

Distribution of inheritance

Certainly the death of a loved one, in a very painful event for the family. And that goes hand in hand with a number of errands that cause anxiety, due to the tragic moment that is being lived. As well as record the Requirements to collect the inheritance.

For this reason, it is essential to know about the legal elements, that is, how the inheritance is distributed. Since ignorance about the subject can result in conflicts with family members.

If the deceased or deceased person left a will, some rules must be respected as in Chile there is no testamentary freedom. That is, you cannot distribute the inherited assets to anyone, much less that the distribution of these is made in a disorganized way to each of the heirs.

Therefore, inherited assets must be distributed as follows:

By Half Legitimate

It refers to 50% of the total amount of the inheritance. Which should be distributed among the so-called «Forced heirs». These are: The spouse, parents and children.

The Fourth Upgrade

It is 25% of the assets that are inherited, they are arranged to improve the patrimony that the «forced heirs» receive. An example may be: The deceased or deceased person may have left an extra 15% to his spouse and the other 10% to the youngest child.

The Fourth of Free Disposition

With this he refers to the other 25% that remains. And in such a case the person that the deceased has decided.

Now, when the deceased person has not left a will, the conditions are different and the inheritance is distributed in this way:

1. In First Order: It goes to the spouse with whom you lived civilly and the children. Consequently the inheritance is transferred to the grandchildren he has on the son’s side.
2. Second order: In the event that there are no children, the assets can be given to your parents. If these died, the inheritance could even pass to the grandparents.
3. In Third Order: It refers to when there is none of the previously named heirs. That being the case, the assets pass into the hands of the existing siblings from the father and mother. But if anyone has died, his children (nephews) inherit.
4. Fourth Order: Now, if any of the above is missing, the goods pass to the closest. In other words, blood relatives who are alive such as cousins, uncles, among others.
5. In Fifth Order: This order occurs when the people mentioned above are missing. Consequently, the assets pass into the hands of the treasury.

In Chile the Laws do not discriminate against the deceased’s partner as heir, unless they have signed the Civil Union Agreement. It is possible that the spouses have had a long period of coexistence, and their relationship has been public, however, it is not valid for the purposes of inheritance. For this reason, the Civil Union Agreement Law.

What is the AFP?

The AFP (Pension Fund Administrators) are entities that legally invest the money of individuals in financial market instruments. In order that the savings produce a great long-term utility.

These operations are not free, because each employee has to pay some commissions month by month and a balance at the time of retirement, and thus acquire the funds of these companies. The AFPs play an essential role in the economic future of workers.

For this reason, we must give them the importance they require. Carry out a study and an analysis to hire the most suitable company, according to the profile we have. The AFPs are in charge of managing the money that employees have every month in their private capital accounts.

Through that administration, they finance later any type of pension. It can be a disability, funeral, retirement or survivor’s pension. These companies receive their own contributions from employees.

And the carried quotas are invested to favor the worker, in shares of the stock market, also in bonds of private or public institutions, debt securities and in other forms of investment. The State promotes savings of 10% of the worker’s monthly salary. However, it is known that it is not the total that each worker has to pay at the end of the month, because 10% still has to add the commission that their AFP has.

Within the Chilean AFP market, there have been some modifications from the beginning. Currently, a large number of sales and unions have led to the existence of 6 AFPs. Below is a list of AFPs that exist in Chile:

The AFPs have some characteristics, which we mention below:

Solidarity Support

They are able to foresee situations of need in old age, profits come from common taxes of the Nation.

They are a Contributory Support

Contributions are strictly private, and membership is fully mandatory for both volunteer members and independent employees.

Voluntary Support

It is created by voluntary pension savings programs (APV), and also voluntary savings accounts. There are advantages over voluntary savings.

If you are a new client for the Pension Fund Administrators, you do not have the opportunity to freely choose the most convenient AFP. This is because as of August 2010, there is a Law that orders employees to join the AFP that has obtained the last tender. And therefore stay in it while it is in force.

At the end of this bidding period, the associated savers have the possibility to change their AFP whenever it is necessary. When choosing which one, you must be sure that our saved money is protected.

And it is recommended to carry out a study beforehand where the commissions generated by each of the AFPs can be compared. And also observe the number of affiliates that each company has and thus be able to guide themselves in a better way. Apart from studying each company and comparing them, the provisional cost that corresponds to it is counted.

The AFPs have the ability to operate in markets that pose risk. This through a list system that indicates and discriminates between selectable and non-selectable tools. The AFPs invest in the mechanisms stipulated by the Central Bank of Chile and the AFP Superintendency. They can be divided in two ways:

For Fixed Income

Variable income

We hope we have helped you regarding the Requirements to collect the inheritance. In such a way that you can begin to carry out the pertinent proceedings.

It is important that you analyze and advise yourself very well on the situation in which you find yourself, so that everything goes as well as possible. We wish you luck with your procedure.

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