Portugal has a legal device called a usufruct where there is a beneficial ownership given to someone over a property but legal title to the property is in the names of one or more people.Anyone with experience with usufruct?
Luis, thank you for your reply. Do I understand correctly that if I purchase a Portugal property and want my two children to be registered on the title as owners with me enjoying a usufruto, then even though I originally purchased the property, once my children are on title then I cannot sell the property if I wanted? Only they can? Thank you.
Hi Sabresl.a.a.s, thank you for clarifying a bit more. Here in Canada we have no such an agreement as a usufruto. Putting a property in trust with one person owning it and another person allowed to freely use the property is the closest we get to a usufruto.
One critical aspect of the usufruto arrangement that you might help with is how the title to the property is registered in Portugal. For example if I own the property and I want the the raiz in the names of both my children who are adults, in North America title can be registered "joint tenants with right of survivorship" or "tenants in common" with no right of survivorship. Either choice can have very different consequences in estate planning as to what happens to the property should I die. Thank you.