Wills, Estate Planning, and Inheritance Law in Ecuador — What Every Expat Must Know

If you own property in Ecuador, have an Ecuadorian bank account, or have built any kind of financial life here, you need to understand how inheritance works in this country. And here's the thing that catches almost every American and Canadian expat by surprise: you cannot leave your Ecuadorian assets to whoever you want.

Ecuador uses a forced heirship system that is fundamentally different from US or Canadian law. If you don't plan for this, the Ecuadorian government will decide who gets your stuff — and the answer might not be what you intended.

This isn't a topic anyone wants to think about. But it's one of the most consequential legal issues for expats who own assets in Ecuador, and ignoring it creates real problems for the people you leave behind.

Ecuador's Forced Heirship System: The Big Difference

In the United States, you can generally leave your assets to anyone — your spouse, your children, your best friend, a charity, your cat. Your will controls.

Ecuador does not work this way.

Under Ecuador's Civil Code (Código Civil, Articles 1194–1250), your estate is divided into three mandatory portions:

The Three Portions

1. Legítima (50%) — This half of your estate MUST go equally to your "forced heirs" (herederos forzosos). You have zero discretion over this portion. It is divided equally among:

   • Your children (and their descendants if a child predeceased you)
   • Your surviving spouse
   • Your parents (if you have no children)

2. Cuarta de mejoras (25%) — This quarter can be distributed among your forced heirs as you choose, but it must stay within that group. You can use this to give more to one child than another, or to favor your spouse, but you cannot give it to someone outside the forced heir group.

3. Cuarta de libre disposición (25%) — This is the only quarter you can leave to anyone you want. A friend, a charity, a non-relative caretaker, a university — this is your free will portion.

What This Means in Practice

Example: You own an apartment in Cuenca worth $120,000 and have $30,000 in an Ecuadorian bank account. Total Ecuadorian estate: $150,000.

• $75,000 (50%) must be split equally among your children and surviving spouse
• $37,500 (25%) can be directed to specific forced heirs of your choosing
• $37,500 (25%) can go to whoever you want

If you wanted to leave your entire apartment to your new partner who isn't a spouse, or to a close friend, or to a charity — you legally cannot do that with assets located in Ecuador.

Who Are Forced Heirs?

The order of forced heirs under Ecuadorian law:

1. Children (legitimate, illegitimate, and adopted — Ecuador makes no distinction) and their descendants
2. Surviving spouse (including same-sex spouse)
3. Parents (only if there are no children)

If you have no children, no spouse, and no living parents, forced heirship doesn't apply and you can distribute your Ecuadorian estate freely.

The Critical Question: Which Law Applies?

Ecuador applies its inheritance law to assets located in Ecuador, regardless of your nationality. Your US will governs your US assets under US law. Your Ecuadorian assets fall under Ecuadorian law.

This is why you need separate estate plans for each country.

Making a Will in Ecuador

Types of Wills

Ecuador recognizes several types of wills, but the one virtually every expat uses is:

Testamento abierto (open will): Executed at a notary (notaría) in front of two witnesses. The notary reads the will aloud, everyone signs, and it's registered. This is the standard, recommended approach.

Other types exist — closed wills (testamento cerrado, sealed and opened after death), holographic wills (handwritten, risky because any procedural error can invalidate it), and special wills (military, maritime). Stick with the open will at a notary.

The Process

1. Hire an Ecuadorian lawyer who speaks English. They'll draft the will in Spanish according to Ecuadorian law. Cost: $200–400 for the legal drafting, depending on complexity.
2. Go to a notary (notaría) with your lawyer, your cédula or passport, and two witnesses. Witnesses must be adults, not beneficiaries of the will, and not related to the notary. Your lawyer can usually arrange witnesses.
3. The notary reads the will aloud in Spanish. If you don't speak Spanish, you'll need an interpreter (your lawyer can serve this role, or the notary may require a separate one).
4. Everyone signs. The notary registers the will in their protocol book and provides you with certified copies.
5. Notary fees: $100–200 depending on the notaría and the length of the document.

Total cost for a basic Ecuadorian will: $300–600.

Do You Need Both a US Will and an Ecuadorian Will?

Yes. This is the recommended approach:

• Your US will covers your US assets (bank accounts, investments, property, retirement accounts)
• Your Ecuadorian will covers your Ecuadorian assets (property, bank accounts, vehicles, personal property in Ecuador)

Critical: Make sure the two wills do not contradict each other, and make sure neither will contains a clause that revokes "all prior wills" — because that clause in your US will could theoretically invalidate your Ecuadorian will. Have both lawyers review both documents.

What If You Don't Make a Will?

If you die without a will in Ecuador (intestate), the forced heirship rules apply automatically. Ecuador's intestate succession follows the same hierarchy:

1. Children and surviving spouse split the estate
2. If no children: parents and surviving spouse
3. If no children or parents: surviving spouse gets everything
4. If no spouse: siblings
5. If nobody: the state

The problem with intestate succession isn't necessarily who gets the assets — it's the time and cost. Intestate probate requires a judicial proceeding (juicio de sucesión intestada), which takes 6–12 months or longer and requires a lawyer. A will makes everything faster and cheaper.

Probate in Ecuador

With a Will

The process (juicio de sucesión testamentaria) is relatively straightforward:

1. Your lawyer files the will with the court or, in some cases, the process can be done at a notary if all heirs agree
2. The court verifies the will's validity
3. Heirs are notified and can accept or contest
4. Assets are inventoried and appraised
5. Debts are paid from the estate
6. Remaining assets are distributed per the will (within forced heirship rules)

Timeline: 2–6 months if uncontested. Cost: $1,000–3,000 in legal fees.

If all heirs are in agreement, a notary can handle the process without going to court (partición extrajudicial), which is faster and cheaper — typically 1–3 months and $800–2,000.

Without a Will

Same basic process but longer. The court must determine heirs (which may require locating and notifying people), apply intestate succession rules, and resolve any disputes. Timeline: 6–12 months minimum, sometimes longer. Cost: $2,000–5,000+.

Bank Accounts After Death

When an Ecuadorian bank is notified of an account holder's death, the account is frozen immediately. Surviving family members cannot access the funds until probate is complete and the court or notary orders the bank to release funds to the heirs.

This is a real problem if your spouse depends on that account for daily living expenses. Planning tip: Maintain a separate account in your spouse's name with enough to cover several months of expenses. Joint accounts are frozen too — the deceased's portion is subject to the estate process.

Property Ownership Strategies

How you title property in Ecuador has major implications for what happens when you die.

Individual Ownership

If the property is in your name alone, forced heirship applies to the full value. Your heirs go through probate to transfer the title.

Sociedad Conyugal (Marital Property)

If you're married under Ecuadorian law or your marriage is recognized here, property acquired during the marriage is generally community property (sociedad conyugal). When one spouse dies, the surviving spouse automatically owns 50% (their community property share), and only the deceased's 50% goes through the estate/forced heirship process.

Fideicomiso (Trust)

Ecuador has a trust mechanism (fideicomiso mercantil) that can be used for property planning. The property is held by a trust entity rather than in your personal name. This can potentially avoid some forced heirship complications, but:

• Trusts are more expensive to set up ($2,000–5,000)
• They require ongoing administration
• The legal landscape around trusts and forced heirship is not entirely settled — a court could potentially look through the trust structure
• You need a lawyer experienced in fiduciary law (derecho fiduciario)

LLC / Company Ownership

Some expats hold property through an Ecuadorian company (sociedad or compañía). When you die, you don't own the property — you own shares in a company that owns the property. Transferring shares may be simpler than transferring real estate, and it may offer some estate planning advantages.

Downsides: cost of incorporation ($1,500–3,000), ongoing accounting requirements, annual company tax filings, and the SRI (tax authority) looks more closely at companies that exist solely to hold a single property.

The honest advice: There's no magic structure that eliminates forced heirship entirely. The best approach is to understand the rules, title property thoughtfully, and have a will that works within the system. Talk to a lawyer before you buy.

Powers of Attorney: Do This Now

A poder (power of attorney) is one of the most important documents you can have in Ecuador, and one of the easiest and cheapest to set up. If you become incapacitated — illness, accident, cognitive decline — someone needs legal authority to act on your behalf.

Types

Poder general (general power of attorney): Grants broad authority to act on your behalf in all legal, financial, and administrative matters. Your agent can sign contracts, access bank accounts, sell property, deal with government agencies, and handle your affairs comprehensively.

Poder especial (special power of attorney): Limited to specific tasks — selling a particular property, managing a visa application, handling a specific legal matter.

The Process

1. Go to any notaría with your cédula or passport
2. The notary drafts the poder (or your lawyer drafts it and the notary formalizes it)
3. You sign in front of the notary and witnesses
4. Cost: $100–200

Who Should Be Your Agent?

• Your spouse is the obvious choice, but have a backup — what if you're both incapacitated?
• A trusted friend in Ecuador who speaks Spanish
• Your Ecuadorian lawyer
• An adult child (but they'd need to be in Ecuador or have someone to sub-delegate to)

Do this early. If you wait until you need it, it may be too late — you must be mentally competent to grant a power of attorney. Once you're incapacitated, the only option is a court-appointed guardian (curador), which takes months and costs thousands.

Inheritance Tax in Ecuador

Ecuador imposes an inheritance tax (impuesto a la herencia) with progressive rates:

Inherited Amount (USD)	Tax Rate
Up to ~$72,000	0%
$72,000 – $144,000	5%
$144,000 – $288,000	10%
$288,000 – $576,000	15%
$576,000 – $1,152,000	20%
$1,152,000 – $2,304,000	25%
$2,304,000 – $4,608,000	30%
Over $4,608,000	35%

These thresholds are approximate and adjust periodically. The tax is paid by the heir, not the estate. Spouses and direct-line descendants get the most favorable treatment; distant relatives and non-relatives pay higher effective rates.

US Estate Tax Implications

If you're a US citizen or permanent resident, your worldwide estate is subject to US estate tax. The current federal estate tax exemption is approximately $13.6 million per individual (2026), so most people won't owe US estate tax. But:

• Your Ecuadorian property and bank accounts are part of your US taxable estate
• You may need to file Form 706 (US Estate Tax Return) if the total estate exceeds the filing threshold
• Ecuador and the US do not have an estate tax treaty, but you may be able to claim a foreign tax credit for inheritance taxes paid in Ecuador

This is an area where you absolutely need a tax professional who understands both systems. FileAbroad can help with the US tax side.

The Action Plan

Here's what you should do, in order:

1. Before buying property: Consult with an Ecuadorian lawyer about titling strategies. How you put the property in your name (individual, joint, company, trust) affects everything that happens later.
2. Make an Ecuadorian will. $300–600 at a notary. Even if your estate is simple, a will makes everything faster and cheaper for your heirs.
3. Review your US will. Make sure it doesn't revoke your Ecuadorian will. Make sure it covers your US assets appropriately.
4. Execute a power of attorney. $100–200 at a notary. Do it while you're healthy and competent.
5. Tell someone. Make sure your spouse, your children, or a trusted person knows where your Ecuadorian will is, who your Ecuadorian lawyer is, and what accounts you have. A will that nobody can find doesn't help anyone.
6. Review every few years. Life changes — remarriage, new children, property purchases, divorce. Update your will and POA as needed.

Finding the Right Lawyer

You need an Ecuadorian attorney (abogado) who understands both Ecuadorian succession law and the concerns of foreign clients. Specifically:

• They should speak English (or you need an interpreter you trust)
• They should have experience with estate planning for expats, not just general practice
• They should understand the interaction between US and Ecuadorian estate law (or be willing to coordinate with your US attorney)
• Ask for references from other expats

Expect to pay $150–300/hour for a competent bilingual attorney in Cuenca or Quito. The initial consultation plus will drafting is typically a flat fee of $300–600.

The Bottom Line

Ecuador's forced heirship system is not optional, not negotiable, and not something you can avoid with a clever trick. If you own assets in Ecuador, 75% of those assets are going to your forced heirs whether you like it or not. The 25% you control freely is all you get.

The good news: if your forced heirs are the people you'd choose anyway (your spouse and children), the system works in your favor — it protects them by law. The complications arise when your wishes don't match the default rules, or when you haven't planned and your heirs face a slow, expensive intestate process.

Make the will. Sign the power of attorney. Have the conversation with your family. It costs a few hundred dollars and a couple of hours at a notary. Not doing it costs your loved ones months of legal proceedings and thousands in fees during what's already the worst time of their lives.