Complementary Law No. 227 of 2026 establishes a new framework for ITCMD (Tax on Inheritance and Donations) in Brazil and significantly reshapes the traditional logic of estate planning.

The primary change concerns the tax base calculation. Under the new rule, the tax is now levied on the market value of transferred assets, abandoning historical or accounting criteria. In addition, progressive tax rates increase the overall tax burden according to the value of the transferred estate.

In practical terms, the classic asset-holding structure designed exclusively for tax efficiency loses much of its historical advantage.

What effectively changes

The tax base no longer reflects book value and instead captures the actual appreciation of assets. Real estate, corporate interests, and financial investments will now be taxed at their market value at the time of transfer.

Furthermore, progressive rates expand the tax impact on higher-value estates.

The effect is twofold:

• The taxable base increases.
• The effective tax rate may also rise.

In many cases, the inheritance tax burden may approach nearly double what had been projected under previous planning structures.

Risks and asset implications

The reform may trigger significant consequences, including:

• Immediate recalibration of existing estate plans.
• Substantial increase in projected tax liabilities.
• Liquidity pressure at the time of transfer.
• Risk of forced asset sales to cover tax obligations.
• Destabilization of holding companies created solely for tax purposes.

For business families and complex wealth structures, the impact is not merely fiscal — it is strategic.

Estate planning ceases to be solely a tax-saving instrument and becomes a matter of active liquidity management and structured asset governance.

Strategic recommendations

In light of the new framework, immediate review of all existing estate planning structures is strongly recommended.

Key measures include:

• Recalculating tax exposure based on current market value of assets.
• Conducting financial simulations to assess the real impact of progressive rates.
• Evaluating liquidity strategies, such as life insurance or pension instruments, to avoid forced asset divestment during sensitive periods.

Succession planning now demands a strategic governance approach rather than a purely tax-efficiency perspective.

Institutional reflection

Complementary Law 227/2026 reinforces a clear trend toward stricter fiscal oversight in wealth transfers.

Family businesses, holding companies, and investment structures must reassess their strategies through a multidisciplinary lens encompassing tax, corporate, and estate planning considerations.

PDK Advogados closely monitors structural changes in the Brazilian tax system and their impacts on corporate governance and business succession. Through our institutional channels and website, we regularly publish technical analyses on tax reform, corporate structuring, and asset protection strategies — always with a focus on legal certainty and long-term vision.