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Understanding Italian inheritance laws
If you are struggling to navigate the Italian probate process following the death of a family member, this can increase stress and worry at an already difficult time. The team here at Giambrone & Partners always strives to offer clear and helpful advice.
Here, we take a closer look at the Italian laws of succession surrounding inheritance in Italy.
Whether you are struggling with a dispute or simply looking for advice on how to handle the probate procedure we will help you navigate the Italian inheritance law process as smoothly as possible.
Click on a link to that section:
Read more about the principles which govern Italian inheritance and succession laws.
Read our guide to Italian inheritance laws.
Find out how it is determined who may inherit your property after death.
Read our guide to Italian inheritance tax.
We explain how to write an Italian Will and the importance of having one in place.
Read some common reasons for Italian property inheritance disputes.
Find out more about the different methods of dispute resolution.
Read how we can assist you in writing a Will, or providing guidance on Italian inheritance laws.
We answer common queries on Italian property inheritance laws.
What is inheritance and succession under Italian law?
Under the Italian laws of succession, an individual's estate is disposed of in defined portions amongst the deceased's family, depending on their relationship to the deceased. For example, the estate of a deceased married man will be divided between his "reserved heirs" meaning his widow and children and in some circumstances the parents have the right to a portion of the estate. An individual can make a will but if any of the reserved heirs are omitted they can make a claim against the other beneficiaries. Similarly, if a reserved heir has received a smaller portion of the estate than the laws of succession indicate they can make a claim to have their portion increased.
The principles around Italian inheritance laws (Successione legittima) are governed by the Italian Civil Code (Codice civile), this defines the order of division with the spouse, children and other close relatives identified up to the sixth degree.
If a foreign national has assets in Italy it is strongly advised that with the assistance of expert legal advisors that you make an Italian will and a will in your country of origin or domicile as it is a very complex area. A qualified lawyer will be able to ensure that your will meets the requirements of the Italian inheritance laws and complex heirship rules.
Giambrone & Partners' highly experienced inheritance, wills and probate team of English-speaking Italian lawyers can assist you in writing a will. For assistance, contact us today.
What inheritance laws apply in Italy?
The Inheritance law in Italy is based on the last will of the deceased, which aims to minimise the risk of potential conflicts between the various heirs. The will also has the added benefit of reducing the taxes that heirs must pay on property left to them via the rules of legittima.
If an individual with Italian assets would prefer to follow the rules of inheritance in their own country, this must be stated in their will via an electio legis. Without this information enshrined in a will an estate be divided up between the compulsory heirs as dictated by Italian law.
Who are possible heirs to your property after death?
The Italian succession law dictates the automatic 'forced heirs' who are entitled to a compulsory share of the deceased's estate, known in Italy as legittima. The following heirs are entitled to a fixed share amount:
A spouse - The law states that a wife, husband or separated partner have equal rights, providing the judge has not deemed the heir to be responsible for the separation. A divorced spouse is not considered an heir.
All children whether legitimate, illegitimate, or officially adopted are considered heirs.
The ascendants (parents) if no children or grandchildren are alive following the death of the individual.
However, as mentioned above, heirship rules only apply if the deceased individual is officially an Italian national or the deceased was a permanent resident in Italy. If as estate relates to an individual who owns property in Italy without being an Italian citizen, these rules can still be followed if their own country of nationality allows it.
How does inheritance tax work in Italy?
Italian inheritance tax has undergone a transformational period, with the previous tax system abolished in 2001 before being reintroduced in recent years. Today, heirs to an estate are required to pay the necessary inheritance tax based on the following three flat rates:
4% - If the estate is divided between a spouse or their children, no tax is payable on the first €1,000,000 each, with 4% payable thereafter.
6% - If the estate is left or partly divided between brothers, sisters, relatives in law to the third degree, or relatives up to the fourth degree, a tax-free amount of €100,000 each applies. Following this a 6% inheritance tax rate applies.
8% - If the estate is divided between unrelated parties, the nil rate band is €1,500,000 each, with inheritance tax calculated at 8%.
A guide to Italian Wills
There are three possible ways to make a valid will under Italian law; handwritten, formal or a secret will. A handwritten will is made by the testator (the person making the will) and it must be dated and signed, although no witnesses are required. In comparison, a secret will is often written by the testator before being placed and sealed in an envelope. The envelope is not opened until the testator dies, so the wishes remain a secret until then.
Find out how Giambrone & Partners can help you make an Italian will here
A formal will is a common route, as it is drafted by an experienced notary based on the testator's information. The testator then reviews the will and signs in the presence of other witnesses.
As with all wills, to ensure their validity it is always advisable to have them checked by an experienced inheritance lawyer who will advise whether all legal requirements have been met. Although Italian law does not require a will, without one, an estate will follow the aforementioned laws relating to the succession of Italian assets, regardless of the deceased nationality and country of residence.
If there are no children, the entire estate passes to a surviving spouse. If there is one child, both the spouse and child receive a 50% share. For additional children, the estate is divided equally between all children and the spouse. If no children or spouses exist, the next line of succession includes the deceased parents, siblings and finally their descendants.
According to the intestate Italian succession laws, the relatives in the order outlined above will receive a fixed percentage share of all assets. In terms of non-fixed assets, the law of 'scission' will apply based on the rules within the deceased country of nationality.
If you dealing with an Italian probate and are unsure whether a will exists, it is advisable to contact the Italian Bureau. They will be able to search the official Italian Will Register so that you can obtain a legal copy.
Causes of property inheritance disputes in Italy
The Italian law of forced heirship can seem like a very alien concept to those based outside of Italy, and this can lead to disputes surrounding real estate inheritance. For example, perhaps a spouse is expecting to receive a full share of a property, but there may be children from a previous marriage who are legally also entitled to an equal share.
In addition, when an inheritance is accepted the heir is responsible for all taxes relating to the estate, including those which may be outstanding on the property. If there are multiple heirs this can lead to disputes over the funds to pay the outstanding bill, especially if the bill amounts to more than the property is worth. In this situation, an heir may renounce their rights to the inheritance, which can cause issues with other heirs.
Are you dealing with a property inheritance dispute? Find out how Giambrone & Partners can help
The different methods of dispute resolution
As property prices continue to rise and family structures also become more complex, the strict succession rules in Italy can lead to disputes. If an agreement cannot be reached, it can lead to a lengthy legal process in court, which will be expensive. Generally, no family will want to go through this divisive process, and we always recommend that alternative dispute resolution (ADR) options be explored.
The benefits of alternative dispute resolution
When it comes to resolving disputes over property inheritance, no two cases will ever be the same, however, both mediation or arbitration can be considered to find a resolution between all parties. These alternative methods tend to be a more economical solution, and in many situations, it is possible to reach an amicable outcome without damaging relationships.
The mediation route provides an open forum for the various parties to come together, with a neutral mediator acting as a guide during the discussion. Usually, each party will bring a lawyer and will achieve an outcome that is acceptable to all parties.
In some situations, arbitration may be a route if the parties are finding it difficult to reach a decision. In a similar way to mediation, a neutral private judge will meet with the parties outside of the courtroom. However, unlike mediation where the parties retain control over the outcome, with arbitration the judge will have the power to make a decision.
How can Giambrone & Partners help?
Whether you are seeking guidance on succession planning, inheritance laws or drafting a will relating to property owned in Italy, our experienced team of highly experienced inheritance, wills and probate lawyers are here to help. We also have vast experience in navigating Italian property inheritance laws and we can help you to overcome the most complex disputes using mediation and arbitration.
Common queries
What succession rules, if any, apply to the estate of a person who died intestate?
If no will exists, the inheritance will be divided as per Italian succession rules via the immediate family members. Starting with the spouse and children, before moving through the other relatives in accordance to the various degrees of relationship
Can forced heirs challenge a will in a court of law?
Yes, a will can be challenged in court by a forced heir via an 'azione di riduzione' legal action.
How high are inheritance taxes in Italy?
Compared to many countries, the Italian inheritance tax rate is quite low, with rates of between 4% and 8% depending on the relationship to the deceased.
Why write an Italian Will?
Although the succession laws exist in Italy which will determine the inheritance, a will can help to prevent potential disputes. If you are not an Italian resident, it is possible for the laws within your country of residence to apply if you draft an English and an Italian will.
Who can claim an inheritance in Italy?
The Italian Civil Code dictates the inheritance laws, with legitimate heirs being the spouse, children, and other relatives until the sixth degree of connection is reached.
Do you need a will to govern your Italian assets?
It is not a legal requirement, however, if you want to protect your interests it is advisable to make a Will.