Many foreign individuals who acquire property or other assets in Costa Rica do not initially consider the importance of proper estate planning in the country. However, planning for the transfer of assets located in Costa Rica can be as important—if not more so—than planning in one’s home jurisdiction, particularly due to the distance that often exists between beneficiaries and the assets involved.
If you own property or are in the process of formalizing ownership in Costa Rica, it is essential to structure your holdings appropriately to ensure that they are transferred according to your wishes. While estate planning is not always an easy subject to address, failing to do so may result in assets being distributed contrary to your intentions or may create unnecessary difficulties for your beneficiaries.
A key consideration is that estate planning instruments prepared abroad—such as wills or trusts—may not be effective in Costa Rica. Wills in Costa Rica are governed by local law and are subject to strict formal requirements. Furthermore, even if probate proceedings are initiated in another jurisdiction, their enforcement in Costa Rica may be complex due to issues related to jurisdiction, distance, and procedural formalities.
For this reason, it is generally advisable to prepare and execute a will in Costa Rica that specifically governs assets located in the country. If a will already exists abroad, the Costa Rican will should clearly state that it does not supersede or invalidate the foreign document, but instead applies exclusively to assets located in Costa Rica. In some cases, joint wills may be executed by couples, including provisions addressing both separate and simultaneous death scenarios.
Costa Rican wills are typically prepared by a local attorney and executed as an “open will” before a notary public, after which they are recorded in the notary’s protocol and eventually deposited with the National Archives. Alternative forms may be used where confidentiality is desired. Importantly, a will may be amended or revoked at any time by the person who granted it.
It is also advisable to coordinate the Costa Rican will with estate planning instruments in your home country, particularly to address potential conflicts or ensure proper recognition of the Costa Rican will with respect to assets located in such other country.
Effective estate planning should not be limited to the execution of a will. It is equally important to ensure that ownership of assets is structured appropriately, taking into account individual circumstances and objectives. Careful consideration should be given to the designation of heirs and executors, and, where applicable, to the appointment of guardians for minor children and any conditions associated with such roles.
Proper planning helps ensure that assets are transferred efficiently and in accordance with your wishes, minimizing complications for your beneficiaries during an already difficult time. Thoughtful structuring and informed legal guidance can make a significant difference in protecting your investment and facilitating its orderly transition to those you intend to benefit.
At Lang & Asociados, we assist clients in structuring their estate planning in Costa Rica with clarity and precision, ensuring that their assets are properly protected and aligned with their long-term intentions.