Donation and inheritance collation in Italy
Donation and inheritance collation are two key legal institutions in the area of Italian inheritance successions. For a foreign citizen who resides in Italy, or who possesses assets there, these two concepts assume a particularly relevant role.
Preliminarily it is useful to give a brief definition of both.
Donation is a deed through which a subject, the donor, transfers to another subject, the donee, freely and with spirit of liberality, a determined asset or right.
Inheritance collation, instead, finds application in the succession scope aiming to ensure equity among heirs and forced heirs.
For donation and inheritance collation for foreign citizens in Italy it is essential to understand the mechanisms to ensure that their rights, and those of the other heirs, are respected and treated in conformity with regulatory provisions.
- Inheritance
- Acceptance of the inheritance
- Actions to protect the inheritance
- Renunciation of the inheritance
- Inheritance collation
- Consensual inheritance division
- Judicial inheritance division
- Acceptance of inheritance with benefit of inventory
- Inheritance representation
- Inheritance shares with and without a will
- Inheritance and donation
- Inheritance to grandchildren
- Digital inheritance
- Petition for inheritance
- Division of the inheritance community
- Lying inheritance
- Inheritance for de facto couples
What is inheritance collation?
Inheritance collation is a legal institution provided for and regulated by the Italian Codice civile, and operates preliminarily in cases in which one must proceed with an inheritance division.
It consists of the obligation, for the children, the spouse and their descendants, who have received donations during life from the deceased, to contribute to the inheritance estate the value of the donated assets to proceed with a correct redistribution of the patrimony.
With this instrument, therefore, the legislator pursues the intent to restore equality of treatment in the distribution of the inheritance patrimony among family members. The institution naturally benefits the heirs who, during the life of the deceased, have not obtained assets or rights in donation.
Effecting the collation means identifying the inheritance mass that must be divided, including assets that have left it as an effect of the liberalities carried out by the deceased during life.
The collation, aimed at the apportionment that precedes the division, can take place in two ways:
- Collation in nature: the donated asset is materially returned and contributed to the inheritance estate.
- Collation by imputation: instead of physically returning the asset, the heir subtracts from the value of their inheritance share the value of the donation received. This method is used especially when it concerns money, or assets that cannot be returned in nature, and is in fact the most used since the donated assets are consumed or alienated before the opening of the succession.
The action of collation, as anticipated, has as its object all donations, direct and indirect, translative and constitutive, liberatory or remunerative, made by the deceased during life.
It must however be specified that, for there to be an obligation of collation, it must be a real donation. In other terms, it must not be a non-donative legal transaction such as, for example, the loan for use or the interest-free loan, but it must be a deed that can really determine the impoverishment of the donor and voluntary enrichment of the donee, for spirit of liberality, even where this happens indirectly.
Indeed, indirect donations are also subject to inheritance collation, which result from negotiating schemes that possess a typical cause different from the donative one. These are hypotheses in which such enrichment of the beneficiary does not strictly depend on a contract of donation, but on legal acts or transactions whose immediate scope is not that of satisfying the already mentioned liberal spirit.
To conclude, provisions that have modest value in favour of the spouse, expenses for the maintenance and education of children, those incurred for illness, for weddings or those of an ordinary character are not subject to collation by law.
Differences between dispensation from collation and from imputation
That of collation is a procedure provided for by the Italian legal system, unless the donee is dispensed by the donor, within the limits of the available share.
The legal prerequisite is to be co-heirs with respect to the subject towards whom one is required to effect it.
Where instead the deceased subject has expressly dispensed by will from the obligation of collation the subject who has received donations, the succession and the division will take place as if the assets that left the inheritance estate due to dispensed donations had never been there.
With dispensation from collation, therefore, is meant the faculty of the deceased to exempt the subject beneficiary of the donations from collation through an express declaration of dispensation, which acts within the limits of the available share. For the part that exceeds, the dispensation will inevitably entail a harm to the rights of forced heirship.
The difference between this typology of dispensation and that from imputation is very relevant, operating on clearly distinct levels. With dispensation from collation the heir is allowed to retain the assets received in donation without having to contribute them, but it cannot prejudice the rights of the other heirs. If the donation exceeds the available share, in fact, the remaining heirs can act in court in order to obtain a reduction of the donations.
Dispensation from imputation, instead, concerns the possibility of exempting the heir not only from the obligation to contribute the donated assets, but also of considering such assets for the purposes of calculating the share of forced heirship.
In such case the donated asset is not counted in the inheritance share of the beneficiary subject.
Legal advice for donation and inheritance collation in Italy
For foreign citizens residing in Italy or for persons who reside abroad but have assets in Italy, the management of donations and inheritance collation can prove very complex.
Italian regulation, although very clear on the point, must be interpreted in light of any rules of private international law, which may influence the treatment of donations and successions.
A lawyer for inheritance successions with experience in international questions can offer fundamental assistance to ensure that the rights of heirs are respected and that the inheritance division takes place in conformity with the Italian legal system.
Questions relating to collation by imputation, dispensation from collation and donations, may vary depending on the specific circumstances of the case, making crucial the importance of specialised legal advice.
Relying on a law firm for foreigners residing in Italy allows obtaining the right support, complete and professional, to address such delicate patrimonial questions.
Typical scenarios / Case studies
The typical scenarios have been developed by combining the most significant family law situations that our firm regularly handles, creating structured and realistic examples designed to help readers better understand and navigate their own legal matters. The case studies, on the other hand, are based on real cases handled by our firm, with all personal data and identifying details anonymised to protect client confidentiality.
Registering a cohabitation agreement and regularising the status of a foreign partner
A couple living in Rome, consisting of an Italian citizen and his foreign partner without valid residence documents, sought legal protection for their relationship. An urgent application under Article 700 of the Italian Code of Civil Procedure was filed to safeguard their cohabitation, followed by proceedings to obtain an EU family member residence card.
Adult adoption to legally recognise a de facto family relationship
A United States citizen living in Rome sought to formalise a long standing family relationship with his uncle by marriage through adult adoption. Proceedings were brought under Articles 291 et seq. of the Italian Civil Code to obtain legal recognition of their established family bond.
Cohabitation agreement for an Italian Brazilian couple: protecting assets and securing residence rights
An Italian entrepreneur and his Brazilian partner had been living together in Milan for three years. Their situation involved three interconnected legal vulnerabilities relating to immigration, asset protection and succession planning, all addressed through a coordinated legal strategy.
Adoption in Colombia: an Italian couple fulfils their dream after a three year journey
A couple married for eight years embarked on an international adoption in Colombia. The procedure involved two legal systems, three Italian institutions and the Colombian Central Authority, requiring careful coordination throughout every stage of the process.
Succession involving heirs in four different countries: coordinated management across Italy, the United States, the United Kingdom and Switzerland
An Italian entrepreneur left assets located in Italy, the United States and Switzerland, with four heirs residing in four different countries. The matter required the parallel coordination of four legal systems and four tax regimes.
Adult adoption of a partner’s child: legal recognition of a twenty year family bond
A fifty eight year old man seeks to adopt his wife’s thirty year old son, whom he has helped raise for twenty years. Although the relationship was genuine and long established, it had no formal legal recognition, with significant implications for the biological children’s inheritance rights.
Challenging a will for infringement of forced heirship rights: €800,000 recovered for the heirs
Two children inherited only €20,000 each under a will that left almost the entire estate to their late father’s second wife. An action to enforce their forced heirship rights was successfully resolved through mediation.
Succession planning for a family business: transferring a €3 million business to the next generation
A sixty two year old entrepreneur needed to transfer ownership of a company employing fifty people to the son who had been managing the business, while safeguarding the interests of his daughter, who had chosen a different career path. A family agreement and a holding structure ensured business continuity and long term stability.
International adoption by a single parent: when the law opens a path few people know exists
A forty five year old single woman embarked on an international adoption. Although legally possible, this route remains little known and requires a carefully planned legal strategy from the very first stage, beginning with the application for the certificate of suitability.
Digital inheritance: recovering cryptocurrencies and digital assets after death
A professional passed away leaving more than €600,000 in cryptocurrencies held across multiple wallets and exchanges, without providing any access instructions. A substantial digital estate was at risk of being lost forever.
Legal name change for a transgender person: aligning official documents with gender identity
A thirty two year old professional, who had been undergoing hormone therapy for eight years, still had official documents bearing the male name assigned at birth. This discrepancy repeatedly forced unwanted disclosure of her gender identity in professional, banking and administrative settings.
Legal gender recognition and the update of more than 20 official documents: from court judgment to a new legal identity
A forty five year old executive had already obtained a court order granting legal gender recognition but was then faced with the real challenge: coordinating the update of an identity card, driving licence, university degree, employment records, mortgage documentation and insurance policies across multiple authorities, each with different procedures.
How can we help you
Boschetti Studio Legale assists foreign citizens and every person residing abroad who possess assets in Italy. If you have received a donation, or wish to make one, or if you find yourself managing an inheritance collation in which you are involved, the lawyers of our team will help you to resolve all the legal questions connected.
Boschetti Studio Legale can be a guide for donation and inheritance collation for foreign citizens in Italy, offering its clients professionalism and support on:
- donations and inheritance collations, including deeds of donation and dispensation from collation;
- equitable division of the inheritance;
- litigation linked to collation and reduction of donations;
- interpretation of Italian and international rules on succession matters.
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This form is reserved for those who need legal assistance on a concrete situation. We do not provide free advice nor answers to generic queries by email. If you have a case that requires professional assessment, fill in the form: we will contact you back for a first exploratory meeting.
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Which lawyer to turn to for inheritance?
For questions linked to inheritance, it is advisable to turn to a lawyer specialised in inheritance law. This professional will have experience in the regulations that govern the inheritance, the management of patrimonies and successions, and will be able to assist you in the resolution of disputes among heirs, in the drafting of wills or in the renunciation of the inheritance. In particular, it can be useful to turn to a lawyer who is also aware of private international law, where the succession presents cross-border profiles.
How much does a lawyer for an inheritance case cost?
The cost of a lawyer for an inheritance case can vary based on various factors, including the complexity of the case, the duration of the proceeding, and the rates applied by the law firm. Generally, costs may include fees for advice, procedural disbursements. Normally, a quote is requested before conferring the assignment, to have a clear idea of the expenses to be faced. In case of high amounts, generally law firms provide for forms of instalment payment.
What falls within inheritance collation?
Inheritance collation includes all the assets and donations that an heir has received during life from the deceased, which must be returned or considered in the calculation of the total inheritance at the moment of the succession. The objective of this institution is to ensure equity for all the legitimate heirs. Movable assets, real estate and sums of money received fall within collation, except for some particularities that may be provided for in the will. It must be specified that inheritance collation applies only between children and their descendants, in addition to the spouse, if they are called to the succession.
