Settlement of estates in Italy

Basics

Italian inheritance law is governed by the Civil Code (codice civile) – CC for short. These regulations are applicable throughout Italy.

Proof of the right of inheritance

Inheritance law “title”

As a rule, the right of inheritance must be evidenced by a public document. The following documents are accepted:

• In the case of intestate succession: a notarial deed establishing the legal heirs (atto di notorietà)
• an Italian will (testamento)
• an Italian family contract (Patto di famiglia)
• Certificate of inheritance (in former Austrian territories of Italy)
• European Certificate of Succession

A notarized will drawn up before a German notary or a recorded handwritten will are also accepted titles.

If German courts have jurisdiction, a German certificate of inheritance or a judgment of a German court establishing the heirs will also be recognized.

Banks in Italy regularly require the same proof of inheritance rights as land registries. However, it is always at the discretion of the bank to make exceptions to this rule.

Acceptance and waiver of inheritance

Basis

Probably the biggest difference to German inheritance law is that the heirs must declare their acceptance of the inheritance (accettazione) separately and have it notarized in order to be able to dispose of the assets. This can be done in two ways.

Unconditional acceptance

In the case of unconditional acceptance, the heir accepts the inheritance immediately. The heir’s personal assets merge with those of the deceased. As a result, the heir also directly assumes all former liabilities of the deceased. He is therefore also personally liable for all of the deceased’s liabilities. Any action that gives the impression that the heir wishes to dispose of the deceased’s assets is equivalent to a notarized declaration of acceptance. This declaration of acceptance is incontestable and irrevocable (semel heres, semper heres).

Acceptance subject to reservation

In the case of acceptance subject to reservation, the heir undertakes to draw up an inventory of the deceased’s assets and liabilities within three months. The declaration is entered by the notary in the inheritance register and the real estate register (Conservatoria di registiri immobiliari). While the inventory is being drawn up, the heir does not assume any of the deceased’s liabilities. Once the deceased’s inventory has been drawn up, the heir has 40 days to renounce the inheritance. If these 40 days expire, the inheritance is deemed to have been accepted.

Documents required for the acceptance of inheritance in Italy

The following documents are regularly required to prepare the notarization:

• Personal details of the deceased
• Death certificate (certificato di morte)
• Certificate of the deceased’s marital status (certificato di stato di famiglia)
• Certified copy of the will
• Substitute declaration for the notarial deed in the case of legal succession
• List of the deceased’s assets and liabilities
• Separate statement from the bank about the account balance
• If a property exists, an extract from the land register
• List of surviving dependants with Italian tax code (codice fiscale)

Documents that are not in Italian must be presented together with a translation by a sworn translator. Foreign documents that are not recognized under international law may require over-certification or legalization.

The acceptance of inheritance is usually prepared by a lawyer.

Waiver of the inheritance

The inheritance can also be waived by means of a notarial deed. This declaration can be revoked within ten years.

Declaration of Italian inheritance tax and municipal capital gains tax

Italian inheritance tax should be declared and paid before the heirs are entered in the land register.

Transfer to the heirs

After notarization of the deed of acceptance of the inheritance and allocation of the property, an application for transfer of ownership can be submitted. An application for transfer without prior acceptance of the inheritance is deemed equivalent to a declaration of acceptance.

Att. Prof. (GTU / Georgien) Dr. phil. Stephan J. Lang