When a person passes away, their assets must be distributed among the rightful heirs. This process, known as succession (or probate), is one of the most important legal procedures in Costa Rica and requires that each real estate asset be valued accurately and professionally. Below, we explain how it works and why the appraisal is a fundamental piece of the process.
Types of Succession in Costa Rica
Costa Rican law provides for two main types of succession:
Testamentary Succession
This occurs when the deceased left a will that establishes how their assets should be distributed. The will must meet the legal requirements set forth in the Civil Code to be valid. Costa Rica recognizes freedom of testation: the testator may freely dispose of their assets, provided they secure support for minor children or children with a disability that prevents them from supporting themselves, and for their parents and spouse while they need it (Civil Code, art. 595). If the will fails to do so, an amount sufficient for that support, estimated by experts, is set aside before the heirs receive the rest.
Intestate Succession (Without a Will)
When no will exists, the law determines who the heirs are and in what proportion they receive the assets. The Civil Code (arts. 572 and 573) calls heirs in successive orders; each order inherits only if there is no one in the previous one:
- Children, parents and the spouse or common-law partner (including children and parents by upbringing): inherit in equal shares, with adjustments for marital property or separation
- Grandparents and other ascendants
- Siblings
- Nephews and nieces
- Uncles and aunts
If none of them exist, the estate passes to the Education Board of the place where the assets are located and to the Costa Rican Red Cross.
The Succession Process Step by Step
The succession procedure in Costa Rica follows a well-defined legal process:
- Opening the case: An attorney files the petition before a court or notary public
- Publication of notices: Announcements are published in the Judicial Bulletin so that potential creditors or heirs may come forward
- Asset inventory: All assets of the deceased are identified, including real estate, vehicles, bank accounts, and other holdings
- Property appraisal: A licensed appraiser determines the value of each real estate asset
- Debt settlement: Outstanding obligations of the deceased are paid
- Adjudication: Assets are distributed among the heirs accordingly
Why Is an Appraisal Essential in a Succession?
The appraisal serves critical functions within the succession process:
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Equitable distribution: To divide assets fairly, you first need to know what each one is worth. Without a professional appraisal, it is impossible to guarantee that each heir receives their rightful share.
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Basis for tax procedures: The value of the real estate is used in the tax and municipal procedures that accompany the succession, such as the transfer tax when applicable. A professional appraisal documents that value with technical support.
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Signed by a licensed professional: It is advisable to have the appraisal signed by a professional registered with their association (the CFIA, Colegio Federado de Ingenieros y de Arquitectos, Costa Rica’s Federation of Engineers and Architects, or the Colegio de Ingenieros Agrónomos, the agronomists’ professional body) with valuation experience, so they answer to that association for the report. For property tax, Law 7509 requires it expressly (art. 10 bis). In court proceedings, the judge weighs the report with the other evidence and may appoint their own expert.
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Conflict prevention: When heirs have an objective, professional valuation, disputes over asset values are significantly reduced.
Appraisal Requirements for Successions
For an appraisal to work well in a succession proceeding in Costa Rica, it should meet these requirements:
- Be prepared by a professional registered with their association (CFIA or Colegio de Ingenieros Agrónomos) with valuation experience
- Include a complete description of the property with registry data
- Contain a technical analysis with the methodology used
- Be signed and stamped by the responsible professional
- Present a current value as of the time of the proceedings
Avoid Delays in Your Succession Process
A professional, well-supported appraisal expedites the succession process and prevents objections that can cost months of delay. The appraiser’s experience with this type of valuation makes all the difference.
At Díaz Peritajes, we have extensive experience in succession appraisals throughout Costa Rica. We are a firm with several professionals, founded by Ing. José Alberto Díaz V., a CFIA member since 1982, and our appraisers provide you with a rigorous, signed technical report that supports each stage of your succession process.