Managing Foreign Real Estate in Estate Succession

Dealing with an estate succession is a delicate time that combines the grief of loss with the complexity of asset management. The situation becomes particularly intricate when the deceased's estate involves real estate located outside of Italy, perhaps through lifetime gifts. Often, the doubt or certainty arises that some heirs have been favored through the transfer of property abroad, diminishing the value of the overall estate that should be divided equally among those entitled. Understanding how these assets should be included in the succession calculation is fundamental to ensuring respect for legal inheritance shares.

The Mechanism of Collazione and International Regulations

The legal institute of collazione ereditaria (estate collation) requires children, their descendants, and the spouse who are co-heirs to contribute to the estate all that they have received from the deceased as a gift, directly or indirectly, unless the deceased has explicitly exempted them from this obligation. This principle, enshrined in the Italian Civil Code, aims to maintain balance and equal treatment among the closest co-heirs. However, when the subject of the gift is real estate located abroad, the issue becomes complicated due to the interaction between different jurisdictions.

According to EU Regulation no. 650/2012, which governs cross-border successions, the applicable law is generally that of the state where the deceased had their habitual residence at the time of death, unless a different choice was made in a valid will. If Italian law is applicable, the obligation of collation extends to assets located abroad. This means that the value of the property gifted outside of Italy must be fictionally reunited with the remaining estate to calculate the shares due to each heir. It is essential to correctly determine the value of such assets at the time of the succession's opening, an operation that requires specific expertise and often the collaboration of local professionals.

Studio Legale Bianucci's Approach to International Successions

As an expert lawyer in succession law in Milan, Avv. Marco Bianucci addresses issues related to the collation of foreign assets with an analytical and strategic method. The firm's priority is to accurately reconstruct the entire inheritance estate, looking beyond national borders to identify and value past gifts that may have infringed upon the rights of legal heirs. The approach is not limited to the mere application of the law but involves in-depth investigation to ascertain the global assets of the de cuius (deceased).

Avv. Marco Bianucci collaborates, where necessary, with a network of international correspondents and experts to obtain reliable real estate valuations that comply with the standards of the country where the property is located. This allows for precise quantification of the value to be attributed to collation, avoiding approximate estimates that could harm the client. The goal is to achieve an equitable division of the inheritance, favoring, where possible, out-of-court settlements that reduce the emotional time and costs for the family, while maintaining maximum firmness in protecting the client's rights in judicial proceedings if the opposing party shows no willingness to cooperate.

Frequently Asked Questions

How is the value of real estate gifted abroad calculated for collation purposes?

The value to be considered for collation is that which the property has at the time of the succession's opening, i.e., at the date of the donor's death. However, the condition of the property at the time of the gift must be taken into account. If the property is located in a country with a currency different from the Euro, it will also be necessary to perform the correct currency conversion, considering the exchange rates in effect at the time of the succession's opening.

Is it possible to avoid collation for real estate received as a gift?

Collation operates automatically by law between spouses, children, and their descendants, unless the donor (the deceased) has expressly exempted the donee in the deed of gift or in the will. However, this exemption has limits: it is only effective up to the extent of the disposable share. If the value of the gift exceeds the portion of which the deceased could dispose, the excess must still be contributed or reduced to reinstate the legal inheritance share of the other heirs.

What happens if the foreign property was sold by the donee before the donor's death?

If the real estate received as a gift was alienated (sold) before the succession's opening, the obligation of collation does not cease. In this case, collation occurs by imputation: the co-heir donee must attribute to their share the value that the property had at the time of the succession's opening. This prevents the sale of the property from being used as a stratagem to remove value from the estate to be divided.

Protect Your Inheritance Rights with Avv. Marco Bianucci

Successions involving foreign assets require specific technical expertise and a global perspective. If you believe your inheritance share has been compromised by gifts of real estate outside of Italy, or if you need assistance managing a complex inheritance division, it is crucial to act with awareness. Avv. Marco Bianucci is available at the Milan office, located at Via Alberto da Giussano 26, to analyze your specific situation.

During an initial consultation, the available documentation will be examined, and the most appropriate strategy will be outlined to ensure your inheritance entitlements are respected. Contact the firm to schedule an appointment and receive punctual and rigorous legal assistance.