The usufruct is an essential wealth-planning tool for Brazilians. The US tax implications of usufructs require special attention for Brazilian families with US connections. These families must integrate their Brazilian and US planning to take advantage of opportunities and mitigate risks. Without effective planning, the US tax rules may undo the benefits of the usufruct in Brazil. This article focuses on Brazilian and US tax implications of a Brazilian usufruct involving US persons.
The Usufruct Concept
The usufruct is a fundamental civil law concept in the domestic law of many civil law jurisdictions. It is a valuable wealth planning tool ...