O ITCMD (Imposto sobre Transmissão Causa Mortis e Doação) is the state tax levied when goods or rights are transferred free of charge - either by inheritance or donation.
It is levied on real estate, money, shareholdings and other assets of economic value.
Responsibility for payment generally lies with the person who receive the good - the heir or donee.
The tax must be paid before the inventory is completed or the transfer of ownership is registered.
Rates vary by state - generally from 2% to 8% of the value of the assets, within the limit allowed by the Constitution.
Succession planning - such as gradual donations or family holding companies - can reduce the tax impact.