If you live abroad but own a property or other valuable assets in Italy, or if your family and assets are spread across different countries, understanding the rules that apply to your inheritance can make a significant difference.
The law governing your succession can directly affect who inherits your assets, the shares allocated to your family members, and the extent to which you are free to decide who will receive your estate.
Planning ahead helps you make informed decisions and reduce the risk of uncertainty and disputes among your heirs.
Why Is It Important to Know Which Law Governs Your Inheritance?
Imagine that you are an Italian-American citizen living in the United States. You own an apartment in Italy and a house in New York, while your spouse and children live in different countries.
Which law will determine who inherits your assets when you die?
The applicable law matters because inheritance rules differ between countries and may affect:
- Who is entitled to inherit: each legal system may define eligible heirs differently.
- The shares allocated to family members: the proportion of the estate received by your spouse, children and other beneficiaries may vary.
- Your freedom to dispose of your assets: some legal systems reserve part of the estate for certain family members, restricting your ability to leave the entire estate to other beneficiaries.
- The rights of your spouse and children: the level of protection afforded to family members also depends on the applicable law.
- Liability for inheritance debts: the applicable law determines the handling of the deceased’s debts and the potential personal liability of the heirs.
A succession plan that complies with the law of one country may therefore produce different results if another country’s law governs the succession.
Which Law Applies If You Live Abroad and Own Assets in Italy?
You might assume that Italian law automatically applies to all property located in Italy. However, this is not necessarily the case.
An important factor is the country in which the deceased had their habitual residence. Determining habitual residence requires considering not only where the person was formally registered, but also where and for how long they lived on a stable basis and the personal and family ties they established there.
For example, if you are an Italian citizen who has lived abroad for many years, the law governing your inheritance may be that of the country where you live, even if you own a house or other assets in Italy.
Determining habitual residence may require a careful assessment of the specific circumstances, particularly where a person has lived in several countries or maintains significant ties with their country of origin.
Can You Choose the Law That Will Govern Your Inheritance?
Yes, in many cases you can.
The EU Succession Regulation allows you to choose the law of a country of which you are a national, either at the time you make the choice or at the time of your death. This option can be particularly important if you hold dual citizenship, have moved permanently abroad, or have built your family life and accumulated assets in several countries.
For example, if you are an Italian citizen living in the United States, you may be able to choose Italian law to govern your inheritance, provided the applicable legal requirements are met.
However, this choice is not automatic. You must make an express and legally valid choice, generally in your will. Your citizenship alone or an assumption that the law of your country of origin will apply, is not sufficient.
Before making a choice of law, consider how it may affect the distribution of your estate and your family members’ rights.
Why Should You Plan Your Succession in Advance?
When your life and assets are connected to several countries, leaving your succession unplanned can create uncertainty and complications for your family.
Planning your succession in advance allows you to make informed decisions about your assets and how you wish them to be distributed.
Our law firm assists clients with international succession matters, helping them identify the applicable law, assess whether a choice of law is available, and planning successions involving assets in Italy and abroad.
Contact us for a personalised consultation. We will assess your circumstances and help you identify the legal solutions best suited to your succession planning needs.
This article was written by Davide De Rosa and Angela Suprano
