Wills, Trusts and Succession in Italy
CROSS-BORDER ESTATE PLANNING
Drafting of Dual Wills
Foreign nationals with assets in Italy usually have two Wills, one for assets abroad and one for assets in Italy.
Our lawyers hold practising certificates in both Italian law and common law jurisdictions as well as being STEP approved. (Society of Estate and Trust Practitioners). Get help drafting Wills that are compatible with one another
Drafting of Italian Trusts
Trusts offer flexible succession planning asset protection, and can help with complex cross-border issues.
Our lawyers hold practising certificates in both Italian law and common law jurisdictions as well as being STEP approved. (Society of Estate and Trust Practitioners). Get help drafting Trusts that are compatible with Italian law.
Succession and Inheritance
We assist clients with all aspects of succession involving assets in Italy, whether they are resident in Italy or abroad.
Our lawyers are qualified in both Italian and common law jurisdictions and are full members of STEP (the Society of Trust and Estate Practitioners). Whether you are an heir, an executor, or a trustee, we can provide clear and practical advice, resolve cross-border issues, and protect your rights throughout the succession process.
PW JENNINGS AND PARTNERS
KEY LEGAL ISSUES
Foreign nationals with assets in Italy may face unexpected complications when dealing with succession. With proper planning, beneficiaries can avoid unexpected tax liabilities, legal hurdles, and administrative difficulties. The following are a few key points to consider:
FORCED INHERITANCE AND ITALIAN ASSETS
THE "LEGITTIMA"
Under Italian law, certain family members are entitled to inherit a percentage of the estate regardless of what a will states. This is known as "forced heirship".
If a will made under foreign law—such as English or U.S. law—disposes of assets in a way that does not respect the rules of forced heirship, the will may be challenged and potentially rendering it unenforceable in Italy.
WHICH LAW GOVERNS THE ASSETS
THE LEGAL SITUS
When drafting a will in Italy, the location—or situs—of assets plays a crucial role, especially for foreign nationals with property in more than one country. Different countries may apply different rules to immovable assets (such as real estate) and movable assets (like bank accounts or shares), depending on where they are located. This can affect which law governs their succession.
If a will does not account for the situs of each asset, it may lead to conflicts of law or result in parts of the estate being distributed according to unintended rules.
DOMICILE AND HABITAL RESIDENCE
CONFLICTS OF LAW
The distinction between the Italian concept of habitual residence and the common law concept of domicile can create complications when determining which law governs an estate. In Italy, the law typically applies to the deceased’s habitual residence at the time of death, while common law jurisdictions, such as England, rely on the concept of domicile to determine succession rules.
A foreign national living in Italy may find that their habitual residence is considered Italian for legal purposes, even if their domicile remains in another country, potentially leading to conflicts in the applicable succession laws for their estate.
LEGAL FORMALITIES
The legal formalities required for a will to be valid can vary significantly between jurisdictions, creating potential challenges when applying foreign laws to an estate in Italy. A will valid under English law, for example, may not satisfy the formal requirements of Italian law, or vice versa, even if the substance of the will reflects the testator's intentions.
Applying the formalities of one country to another can lead to the will being deemed invalid, which may complicate matters for foreign nationals using the EU Succession Regulation to apply their home country's laws to their estate in Italy. This disparity can result in delays or the need for costly legal proceedings to resolve the issue.
PROBATE CONFLICTS
When a foreign national holds assets in both Italy and abroad, the use of dual wills—one for each jurisdiction—can lead to significant probate conflicts. Each country’s probate system may operate under different rules, timelines, and procedures, creating the possibility that the two systems may not align.
For instance, a will valid under English law for assets located in the UK may be subject to a different probate process than a will valid under Italian law for assets in Italy. These conflicts can lead to delays, complications, or even disputes over which jurisdiction’s probate process should prevail, potentially complicating the distribution of the estate and increasing the administrative burden.
