It is important that people, regardless of the assets they wish to bequeath, draft a will with their last wishes, indicating how they want these assets to be inherited and distributed once they pass away (successions). In the will, the testator can bequeath to family members, friends, or acquaintances:
- Properties
- Money
- Vehicles
- Artworks
- Jewelry
- Businesses
- Houses or apartments, etc.
Making a will prevents conflicts among family members or close individuals since the last wishes of the one who bequeathed their assets in full use of faculties must be respected, and the appropriate legal means should be followed to ensure the will’s validity.
In the will, the person can designate universal heirs to distribute the assets equitably or define the legacy of specific assets. For example, they can specify that a house will pass to a child, and a business will be inherited by a grandchild.
What is a closed will? The closed will is written by the testator, so its content is confidential. Characteristics:
- It can be written by hand or using a computer.
- The closed will bears the testator’s signature.
- It must be presented to a Notary Public to be legally valid: it will be in a sealed envelope.
- The presentation to the Notary Public is also made in the presence of at least two witnesses.
- The Notary adds to the cover of the envelope a public document stating that they received the document from the testator; the number of sheets that make up the will as indicated by the testator; and whether it has erasures or annotations.
- The envelope and the public document with annotations are signed by the Notary, the testator, and the witnesses.
- Once the legal formalities are completed, the will and the public document remain in the hands of the Notary or are returned to the testator, who will safeguard the documents as they see fit.
- The closed will can only be opened after the testator’s death and in the presence of a civil judge.
What is an open will? The open will is prepared in the presence of a Notary Public and three witnesses. Other qualities include:
- It is drafted in a public document.
- It is read by the Notary in the presence of the testator and witnesses. Or by the person indicated by the testator.
- It indicates the exact date (day, month, and year), time, and place when the will was prepared.
- The will is signed by all present parties: Testator, witnesses, and Notary.
- The Notary proceeds to take the will to the National Archive where it will be kept. Storing the will in the National Archive prevents possible alterations by third parties.
Who cannot make a will? The Civil Code of Costa Rica specifies that individuals under 15 years of age and people with some mental disability cannot make a will. Likewise, those who cannot read or write cannot create a closed will.
What happens if I do not leave a will written and registered? If a person dies without having a will, their assets pass to their legitimate heirs, in the following order of priority:
- Children
- Parents
- Spouse, whether a wife or cohabitant in a common-law marriage
If any of the legitimate heirs are missing, the assets will be distributed in this order:
- Testator’s grandparents
- Legitimate siblings
- Children of legitimate siblings
- Boards of Education where the testator owns assets
What is a testamentary trust? A testamentary trust is one where the assets are transferred to a third party who will act as their administrator; the administrator will follow instructions in managing the assets to generate profits that will eventually be received by the heirs and fulfill the wishes of the trustor.
The administrator of the testamentary trust can be any person to whom the testator transfers their assets (properties, shares in a company, money or investments, among others), for a specified period, to manage them properly and ensure that the legacy is never squandered. Therefore, the figures of the testamentary trust are:
- Trustor: testator
- Trustee: administrator = financial or banking institution
- Beneficiary: heir or heirs