Tag Archive for: Italian Inheritance

Testamentary Succession in Italy: Italian Inheritance Law

/in

Close family members take precedence in Italian inheritance

Testamentary succession is determined in accordance with the provisions of a lawful will and the applicable rules of law

In Italy, the disposal of an estate occurs in compliance with the decisions of the testator as set out in an Italian will. Or, where the deceased was intestate, i.e the deceased did not have a will, in accordance with Italian inheritance law.

Italian inheritance law dates back to the Roman Law tradition. Because of this, testamentary succession in Italy follows the principle that a decedent’s close family members merit special protection. This therefore partially limits the right of the testator to dispose of assets entirely as s/he wishes.

Get Your FREE Guide to Planning Your Inheritance in Italy

Our PDF guide explains the ins and outs of preparing your inheritance under Italian law

Download now

Testamentary succession and foreign wills

Following the death of a testator with an Italian will, the competent authorities register and publish the will. However, in the case of foreign wills, Italian law states that an Italian Public Notary must authenticate the will before probate can begin.

Managing testamentary succession documents drafted in a foreign language and subject to a foreign jurisdiction in Italy can present difficulties. In fact, a notary cannot publish or legalise a will drafted in a foreign language. The notary will therefore require an Italian translation. You will need to engage a court-sworn translator to translate the will. Costs for this may be substantially higher than drafting an Italian will in the first place.

Drafting a will in Italian minimises the risk of conflicts among heirs following the death of the testator. It also ensures that the Italian authorities have a clear and direct understanding of the legal framework.

The exclusion of certain heirs from testamentary succession in Italy

As mentioned above, one of the principles of Italian legal succession is the protection of the family. Whether you die with or without a will, you cannot exclude some heirs from the succession.

Italian law calls these forced heirs. They must receive a part of the deceased’s assets. This is known as the reserved quota. Italian Civil Code also determines what quota of assets a testator can freely dispose of, without limitation. This is known as the available quota. 

Forced heirs, reserved and available quotas in Italy

The table below  shows the reserved quota for forced heirs and the available quota dependent on relationship to the deceased:

Forced heirs Reserved quotas and availability
Spouse (or registered partnership) (in the absence of children and parents) 1/2 to the spouse (or registered partner) = 1/2 available quota
One child (in the absence of a spouse or registered partnership) 1/2 to the child = 1/2 available quota
Two or more children (in the absence of a spouse or registered partnership) 2/3 to children (divided into equal parts) = 1/3 available quota
Spouse (or registered partnership) and only one child 1/3 to the spouse (or registered partnership) 1/3 to the child = 1/3 available quota
Spouse (or registered partnership) and two or more children 1/4 to the spouse (or registered partnership)  1/2 to children (divided in equal parts) = 1/4 available quota
Spouse (or registered partnership) and parents (in the absence of children) 1/2 to the spouse (or registered partnership)  1/4 to parents (divided into equal parts) = 1/4 available quota
Parents (in the absence of children and spouse or registered partnership) 1/3 (divided into equal parts) = 2/3 available quota
If there is a Will, the law reserves a quota of inheritance only for the spouse (or registered partner) and children (if the deceased had no children there is a reserved quota for parents who are still living), so if the Will is valid, other relatives cannot make claims.  


Applicable laws

It is also worth mentioning that non-Italian nationals may be subject to the testamentary succession laws of their own country. If the deceased was resident in Italy at the time of death, Italian Inheritance law applies to the deceased’s worldwide assets. Whereas if the deceased lived outside Italy, Italian inheritance law is only applicable to assets in Italy.

For foreign nationals resident in Italy, the introduction of EU Succession Regulations, known as Brussels IV, may also impact how you manage your testamentary succession. 

Finally …

Italian inheritance is a complex matter. In addition, if you own assets in more than one country, this can further compound the complexity. We recommend you seek independent legal advice regarding your personal situation. If we can be of assistance, please get in touch.

For more information about Italian succession and inheritance, you may find our Italian Succession Guide useful.

At De Tullio Law Firm, we have over 55 years of expertise managing cross border succession and estate planning matters throughout Italy. We are a full member of STEP, the world’s leading association for trust and estate practitioners.  

You may also be interested in Legitimate Heirs. Rights of “Forced Heirs” in Italian Inheritance

Inheriting property in Italy. Preparing for The Future

/in


Thinking long term about Italian assets

Do you, or your family, own Italian assets? Are you thinking of buying a property in Italy? If so, it is advisable to research and prepare for the future of those Italian assets. You may like to watch our short video on this subject.

Inheritance and probate laws vary from country to country. Italian assets will not be subject to the same laws as your assets at home. If the deceased was resident in
Italy at the time of death, inherit property Italy laws apply to the deceased’s
worldwide assets. Whereas if the deceased lived outside Italy, inherit property Italy
regulations are only applicable to assets in Italy.

The succession process following the death of a loved one can become complicated and stressful. When you need to consider assets abroad it can also become frustrating and costly.

Get Your FREE Guide to Planning Your Inheritance in Italy

Our PDF guide explains the ins and outs of preparing your inheritance under Italian law

Download now

EU Regulations

In 2015 a new EU regulation came into force. Known as Brussels IV, this regulation aims to facilitate cross border succession. 

Brussels IV enables a testator with assets abroad to choose which country’s law will govern their will. In addition, it introduced a European Certificate of Succession (ECS). Heirs, legatees, executors of wills and administrators of the estate can use an ECS to prove their status and exercise their rights or powers in other EU Member States.

Brussels IV also offers potential benefits for non-EU nationals. Again appropriate action needs to be taken in the form of a choice of law clause in a will. For example, US nationals could nominate US law to apply to the succession of their property in Italy. An Australian with property in Spain could nominate Australian law. A Canadian citizen with property in France could elect Canadian law, and so on.

The country where the deceased was habitually resident determines the way Italian assets are handled

With or without a will, applicable laws and processes vary. For instance, in Italy, a public notary must authenticate a will before probate can commence.

If the testator did not draft an Italian will, a sworn translation of international wills is necessary. Because the testator is no longer around, a translation of a will can create issues and misunderstandings during the probate process. Having separate wills in the countries where you have assets is therefore the best method to prevent problems after your death.

If no will exists, the situation can become very complex for heirs. It is advisable to enlist the help of a specialist lawyer in Italy to manage the succession of Italian assets. If you would like more detailed information about the Italian succession process, you find our Guide to Italian Inheritance helpful.

If you own Italian assets or, you are a beneficiary of an Italian inheritance, it is always advisable to seek legal advice. A lawyer will be in a position to provide useful information about tax liabilities on Italian assets. In addition, a lawyer will also be able to provide information about the rights and responsibilities of an heir. An experienced legal professional will be able to provide advice based on a comprehensive inventory of the assets in question. This will allow you to make an informed decision on how best to proceed.

Finally …

If you own Italian assets don’t put off estate planning because they think you do not own enough, you are not old enough, it will be costly or confusing, you will have plenty of time to do it later, you do not know where to begin or who can help you, or you just do not want to think about it.

Estate planning should be an ongoing process, not a one-time event. You should review and update your plan as your family and circumstances change. This would include when you make an international investment such as a property purchase in Italy.

At De Tullio Law Firm, we have over 55 years of expertise managing cross border succession and estate planning matters throughout Italy. Our firm is also a full member of STEP, the world’s leading association for trust and estate practitioners.

Please contact us if you have any cross border inheritance questions or if would like to discuss your situation.

Italian Will. Why Is It Worth Drafting An Italian Will?

/in , ,

Why is it worthwhile making an Italian will?

If you own property in Italy, having an Italian will can prevent all sorts of difficulties for heirs when transferring ownership of an Italian property.

In Italy, the disposal of an estate occurs in compliance with the decisions of the testator as set out in an will. Or, where the deceased was intestate, in accordance with inheritance law.

in Italy, the law requires that a public notary authenticate a will before probate can begin.

Get Your FREE Guide to Planning Your Inheritance in Italy

Our PDF guide explains the ins and outs of preparing your inheritance under Italian law

Download now

Although, generally speaking, Italy recognises the validity of international wills, they can raise a number of difficulties. As a matter of fact, a notary cannot publish or legalise documents in a foreign language until a court-sworn translator has translated them into Italian. This entails additional cost. It can also lead to misinterpretations of the testator’s wishes regarding disposal of an estate. Sorting out any misunderstandings may end up being another costly and lengthy matter.

It is also worth bearing in mind that having an Italian will can speed up  administrative procedures. For example, with banks. In Italy, accounts and deposits of the deceased are frozen following an account holder’s death. The procedure to access funds can be a difficult and protracted process. Heirs will have to pay certain expenses from their own pockets in the meantime.

In summary. The main advantages to making an Italian will are threefold

1. Reduces the risk of conflict among heirs.

2. Creates possible inheritance tax reductions for heirs.

3. Makes the decedent’s wishes clear to Italian authorities.

A competent legal advisor can help you draft a will that complies with EU Succession Regulations and Italian law. This limits the effects of legal succession in Italy and ensures that the estate is disposed of according to the testator’s wishes, without violating EU and Italian succession regulations.

Finally …

Inheritance is a complex matter. In addition, if you own assets in more than one country, this can further compound the complexity. We recommend you seek independent legal advice regarding your personal situation. If we can be of assistance, please get in touch.

For more information about succession and inheritance in Italy, you may find our Italian Succession Guide useful.

At De Tullio Law Firm, we have over 55 years of expertise managing cross border succession and estate planning matters. We are a full member of STEP, the world’s leading association for trust and estate practitioners.

 

You may also be interested in Legitimate Heirs. Rights of “Forced Heirs” in Italian Inheritance

Wills. Do You Have A Valid Will That Covers All Your Assets?

/in , ,

Are your affairs in order? Wills are important – especially if you own assets in more than one jurisdiction

The independent professional body for solicitors in England and Wales has warned that the consequences of dying without a valid will can be dire for those left behind. The research revealed that 73 per cent of 16-54 year olds don’t have wills. Whereas 64 per cent of people over the age of 55 have made their final wishes clear in a will.

The research also found that men are more likely to have a will and keep it updated than women.

Twenty-three per cent of respondents wrongly believed that without a will, their possessions would automatically go to their family.

Get Your FREE Guide to Planning Your Inheritance in Italy

Our PDF guide explains the ins and outs of preparing your inheritance under Italian law

Download now

Dying intestate not only means your final wishes will probably go unheeded, but the financial and emotional mess is left for your loved ones to sort out. This need not be your final legacy.

Owning property in Italy adds to the complexity for heirs if you die intestate

If the deceased was resident in Italy at the time of death, Italian Inheritance law applies to the deceased’s worldwide assets.

If the deceased lived outside Italy, Italian inheritance law is only applicable to assets in Italy.

This means that foreign nationals with a second home in Italy are subject to international succession procedures.

Generally speaking, Italy recognises the validity of international wills. However, a will in a foreign language needs to be translated by a sworn translator before a notary can register and publish it. This involves cost, takes time and may lead to misinterpretation.

It is therefore advisable for non-Italian nationals who own assets in Italy to draft an Italian will to cover those assets.

Why should you have an Italian will for your assets in Italy?

Firstly, having an Italian will minimises misunderstandings and/or conflicts amongst heirs. Secondly, it facilitates legislative, linguistic and jurisdictional matters with the Italian authorities. Thirdly, having an Italian will can reduce estate tax and lastly, it simplifies the whole inheritance procedure.

Making a will is usually a relatively simple process but we urge people to use a qualified, insured solicitor because he or she will be able to spot cross-border nuances that could lead to trouble later on if not properly addressed.

You need to list all the assets that you would like to include in your Italian will . For example, Italian property, vehicles you keep in Italy, bank accounts and so on.

Estate planning should be an ongoing process, not a one-time event. You should review and update your will as your family and circumstances change. This would include when you make an international investment such as buying property in Italy.

EU Succession Regulations: choice of law in wills

EU Law 650/2012, also known as the Brussels IV Regulation came into effect on 17thAugust 2015. Brussels IV contains a provision for individuals to make an election in their wills for the country of their nationality, or where individuals have multiple nationalities any one of their nationalities, to apply to the devolution of their estate.

Interestingly, there are also potential benefits for non-EU nationals. However, again, appropriate action in the form of a choice of law clause in a will is necessary.
Nominating a country law needs careful consideration. You should take into account matters such as foreign matrimonial regimes, usufruct, tax consequences, joint ownership structures and other foreign proprietary rights with respect to your estate.

Finally …

Because each case is different, you should seek professional support and advice relating to wills.

At De Tullio Law Firm, we have over 55 years of expertise managing cross border succession and estate planning matters throughout Italy. Our firm is also a full member of STEP, the world’s leading association for trust and estate practitioners.

Please contact us if you have any questions about making an Italian will or if would like to discuss your situation.

You may also be interested in How to write an Italian Will.

To find out more about Italian inheritance, you might find our Guide to Italian Inheritance helpful.

Brussels IV: Cross-Border Inheritance Law

/in , ,

What is cross-border inheritance?

Cross-border inheritance laws determine which country handles an inheritance (known in legal terms as succession) and, which country’s national law will govern the inheritance. Cross-border inheritance applies if you live in a country which is not your country of origin or if you own assets in more than one country. Likewise, if you are a beneficiary or executor of a family member who lived in a different country from their country of origin when they died. EU Regulation 650/2012, also known as Brussels IV, came in to effect on 17th August 2015.

Brussels IV has implications for all nationals who reside in a participating EU Member State or who have a connection to a participating EU Member State.

Prior to the introduction of Brussels IV, each EU jurisdiction applied its own rules to govern the devolution of individuals’ property.

Get Your FREE Guide to Planning Your Inheritance in Italy

Our PDF guide explains the ins and outs of preparing your inheritance under Italian law

Download now

In order to determine which country laws would apply to an estate, EU states considered various connecting factors. These included domicile, residence, nationality or habitual residence. In addition, in some EU states, applicable succession law depended whether the assets were immovable (property and land) or movable (bank accounts, vehicles, furniture, jewellery and so on).

The fact that each jurisdiction applied different connecting factors often led to costly, protracted and complex conflicts of laws.

Brussels IV simplifies cross-border inheritance matters

Since the 17th August 2015 however, participating EU States have harmonised succession rules. In an effort to simplify cross-border succession, the EU adopted a single, unified connecting factor – habitual residence.

Therefore, the law of the country where the individual was habitually resident at the time of death is the default position. This, regardless of the location of assets in the estate and, whether the assets are immovable or movable.

For example, if you are a British national but you are habitually resident in Italy, Brussels IV means that instead of your assets passing under the laws of England and Wales, Scotland or Northern Ireland, Italian inheritance law will apply to your worldwide assets.

Furthermore, your estate will be subject to Italian forced heirship rules. Forced heirship rules are similar to UK Intestacy rules. However, forced heirship is applicable even if there is a will. The key point is that Italian forced heirship rules take precedence over a will.

In practice, this means that close family members inherit the deceased’s property regardless of the contents of the deceased’s will. This can often be in preference to the deceased’s spouse or partner. Sometimes, this creates conflicts within families who are unfamiliar with forced heirship cultures. Particularly  if the deceased had children from previous relationships. According to Italian forced heirship rules, these children must also inherit a share of their deceased parent’s estate.

Brussels IV provides an opportunity to elect a country law to apply to your succession

Brussels IV allows individuals to make an election for the country of their nationality to apply to the devolution of their entire estate. Or, where individuals have multiple nationalities, a testator may choose to apply one of these nationalities.

Testators do however need to take action. If you own a property in Italy, you can nominate a country law in your will. This is known as a Choice of Law codicil.

If you are in the process of making or reviewing your will, it is therefore worth considering including a properly drafted Choice of Law codicil to apply to cross-border inheritance. You need to carefully consider matters such as foreign matrimonial regimes, usufruct, tax consequences, joint ownership structures and other foreign proprietary rights with respect to your estate.

Another benefit of Brussels IV is the European Certificate of Succession (ECS). This allows heirs, legatees, executors of wills and administrators of the estate to prove their status. The certificate is then valid in all other EU Member States.

Brussels IV also provides potential benefits for non-EU nationals

Interestingly, there are also potential benefits for non-EU nationals resident in an EU Member State. Again, you need to make an appropriate Choice of Law in your will. For example, US nationals could nominate US law to apply to the succession of their property in Italy. An Australian with property in Spain could nominate Australian law. A Canadian citizen with property in France could elect Canadian law, and so on.

Finally …

Cross-border inheritance law is a complex matter. We recommend you seek independent legal advice regarding your personal situation.

For more information about Italian succession and inheritance, you may find our Italian Succession Guide useful.

At De Tullio Law Firm, we have over 55 years of expertise managing cross border succession and estate planning matters throughout Italy. We are a full member of STEP, the world’s leading association for trust and estate practitioners. If we can be of assistance, please get in touch.

EU Succession Rules Harmonise Cross-Border Inheritance

/in , ,

In 2015, the EU introduced new succession rules to simplify cross-border inheritance matters

To benefit from the new EU succession rules, overseas nationals with assets in an EU Member State need to take action in a will.

According to The European Commission some 450,000 cross-border successions occur in the EU each year. These are estimated to be worth in excess of €120 billion. Effective from August 17th 2015, to solve confusion and prevent disputes, the EU introduced new EU succession rules. These rules allow individuals across participating EU member states to choose which country jurisdiction to apply to the devolution of their estate.

Forced heirship

Many countries in the EU, including Italy, have laws governing ‘forced heirship’. Forced heirship rules are similar to UK Intestacy rules. However, forced heirship is applicable even if there is a will. The key point is that Italian forced heirship rules take precedence over a will.

In practice, this means that close family members inherit the deceased’s property regardless of the contents of the deceased’s will. This can often be in preference to the deceased’s spouse or partner. Sometimes, this creates conflicts within families who are unfamiliar with forced heirship cultures. Particularly  if the deceased had children from previous relationships. According to Italian forced heirship rules, these children must also inherit a share of their deceased parent’s estate.

Get Your FREE Guide to Planning Your Inheritance in Italy

Our PDF guide explains the ins and outs of preparing your inheritance under Italian law

Download now

EU Regulation 650/2012 is also known as Brussels IV

The UK did not opt into Brussels IV when it was still a member of the EU. However, UK nationals with assets in EU countries that adopted the changes, which is all of them except for Ireland and Denmark, can take advantage of Brussels IV.

Brussels IV allows any overseas national who owns property in a participating EU member state to choose either the law of the country of their habitual residence, or the law of their nationality to govern succession of their EU estate. Or, if they have multiple nationalities, they can choose one of their nationalities to govern succession.

Electing a country law provides a way to circumvent forced heirship laws.

EU succession rules allow you to elect a country law in your will

If for example you are a UK national habitually resident in England with a holiday home in Italy. You can now update your English will with a choice of law codicil. This would cover the Italian property with an election for the inheritance laws of England and Wales to apply to it. It means you don’t need a separate Italian will for the Italian  holiday home.

That said, it is highly advisable to have either a bilingual Italian will or an official Italian translation of your English will.  Preferably, the translated version would be in the hands of a solicitor or notary. This will make things easier, less time-consuming and costly in the long run for the executor of your estate.

Before taking action, it’s important to understand all the implications of the EU succession rules

Before making any changes to your will, it is important to understand Brussels IV and all its implications. For example, Brussels IV does not impact inheritance tax.

As previously mentioned, Brussels IV is applicable to all foreign property owners. However, if you are habitually resident in Italy it is essential that you make or update your will in Italian. In your Italian will, you should clearly state which country’s law you wish to elect. Otherwise, because you are resident in Italy, the laws of Italy will automatically apply when dealing with succession. Again, it is important to understand the Brussels IV regulation and its impact.

Interestingly, Brussels IV does not restrict the choice of law to EU nationals. For example, a US national with property in a participating EU Member State could elect for US law to apply to the succession of their property; an Australian could nominate Australian law; a Canadian, Canadian law, and so on.

Finally …

As ever, the key is in the planning. If you want freedom of choice, you have it. Just don’t leave it until it’s too late!

Cross-border inheritance law is a complex matter. We recommend you seek independent legal advice regarding your personal situation. For more information about Italian succession and inheritance, you may find our Italian Succession Guide useful.

At De Tullio Law Firm, we have over 55 years of expertise managing cross border succession and estate planning matters throughout Italy. We are a full member of STEP, the world’s leading association for trust and estate practitioners. If you need advice, help or have any questions on cross-border inheritance matters, please get in touch.