Contributed By Baker McKenzie S.A.S.
In Colombia, a testator only has an unlimited right of disposal over one half of her or his estate that corresponds to the freely disposable portion. The testator may decide upon the beneficiary of the assets comprising the remaining half of the estate, but must respect the compulsory portion that corresponds to his or her heirs.
Certain corporate arrangements (national or foreign) such as life insurance policies and the use of foreign or national legal entities may be implemented when forced heirship rules do not meet the wishes or needs of the testator or his family. The latter by legally allowing assets to be passed down to intended beneficiaries successfully and circumventing Colombian forced heirship rules.
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