PERU Trends and Developments Contributed by: German Carrera, Juliana Llosa, Yesica del Carpio and Moritz Abramovitz, CPB Abogados
a spouse, only one-third of his estate may be freely disposed of; while the remaining two-thirds shall be reserved for their forced heirs. In practice, parents often transfer assets while retain - ing the economic benefits associated with them. For this reason, advancements are frequently combined with a reserved usufruct, allowing the parents to con - tinue using, possessing and receiving income from the assets during their lifetime. This structure is commonly used for real estate, family businesses and investment assets. It enables fami - lies to organise the future distribution of wealth while preserving the parents’ financial security and control over the economic benefits of the assets. As a result, it has become one of the most widely used succes - sion planning tools among Peruvian families seeking to balance wealth transfer, family harmony and long- term financial stability. c ) Designation of support with representation One of the most significant recent developments in personal and wealth planning in Peru has been the growing use of the designation of support with rep - resentation ( Designación de Apoyo con Represent- ación ), which allows individuals to appoint a trusted person to assist and represent them in the event of a disability. This mechanism has gained popularity because dis - ability can prevent a person from managing assets, businesses and financial affairs, creating significant difficulties for both the individual and the family. Through a notarised document, a person may appoint a representative who will act according to specific instructions, ensuring continuity in the management of personal and financial matters of the disabled indi - vidual. As a preventive planning tool, it allows families to pre - pare in advance for potential incapacity events. This mechanism represents a major improvement over the previous system, where lengthy judicial proceed - ings were necessary to appoint such representative. By avoiding such delays, the designation of support with representation helps protect the individual’s inter -
ests while ensuring business continuity and effective asset management. As a result, it has become an increasingly important tool of wealth preservation, business continuity and
succession planning strategies in Peru. d ) Wills as wealth planning instruments
There is a growing trend among relatively young high- net-worth individuals in Peru to grant wills. While wills traditionally served only to confirm the statutory suc - cession regime, they are now increasingly used as sophisticated wealth-planning tools that allow tes - tators to distribute assets according to the specific needs and circumstances of family members. For example, parents often allocate liquid assets to the surviving spouse while leaving real estate, busi - ness interests or long-term investments to their chil - dren. This helps ensure the spouse’s financial stability while preserving wealth for future generations. Another important objective is avoiding co-ownership arrangements. In the past, the distribution of estates frequently resulted in multiple heirs jointly owning indivisible assets, such as real estate or family busi - nesses. Since many decisions affecting co-owned property require unanimous consent under Peruvian law, these structures can lead to conflicts, delays and inefficient asset management. As a result, testators increasingly seek to assign spe - cific assets to specific heirs whenever possible. Where co-ownership cannot be avoided, alternatives such as Peruvian trusts are often considered. Through a trust, decision-making can be delegated to a family com - mittee, which generally operates by majority vote and facilitates more efficient administration. The growing use of wills is also supported by the fact that Peru does not impose inheritance, gift or forced- heirship advancement taxes. Consequently, families can focus on succession planning, governance and asset preservation. Today, wills are viewed not only as instruments for transferring wealth upon death, but as strategic tools to preserve family harmony, reduce disputes and facilitate the orderly transfer of wealth across generations.
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