Draft bill 14.

Summary.

The draft bill proposes to replace the rules in Articles 1550 and 1555 of the Judicial Code (Código Judicial) concerning extrajudicial inventories and the valuation of inherited assets. Under Article 1550, when an estate consists solely of real property, money, or instruments representing money, the heirs’ legal representative would prepare the inventory by submitting a written list of those assets. This provision identifies who would submit the inventory and how it would be prepared for those categories of property.

If the estate includes movable property, Article 1550 provides for experts to carry out the inventory in the presence of two attesting witnesses. The heirs present or their representatives would appoint those witnesses; if they disagree, the Judge would appoint them. The provision therefore sets out a procedure for an estate containing movable property alongside the procedure for real property, money, and instruments representing money.

Article 1555 provides that valuation would follow completion of the inventory and would depend on the type of asset. Money, instruments representing money, mortgage credits, instruments evidencing obligations, and other duly secured claims would be assigned their nominal value as determined by the heirs. For movable property that cannot be valued under that rule, the Judge would order an appraisal by an expert appointed by the heirs. If the heirs cannot agree on the appointment of the valuation expert, the judge would make the appointment.

For real property recorded in the Cadastre (Catastro), the Judge would assign the value recorded there, unless the heirs or the representative of the Treasury (Fisco) challenge it. A certificate issued by the head of the relevant office would establish the cadastral value. Where an expert valuation is performed, it could be recorded immediately after the inventory or in a separate document. Expert participation would not be required in the cases governed by the nominal value and cadastral value rules in Article 1555. The final clause provides that the proposed law would take effect upon its promulgation in the Official Gazette.

The public bodies connected with these provisions are the judiciary, through the decisions assigned to the Judge; the Cadastre, through property values and their certification; and the Treasury, through its representative’s ability to challenge a value. The provisions could be of interest to or affect heirs, their legal representatives, and experts, as well as the real estate, banking, and insurance sectors in connection with property, claims, or instruments forming part of an estate.