INHERITING A HOME: A QUICK OVERVIEW OF WHAT TO DO (AND ABSOLUTELY NOT TO DO)
It may happen during one's lifetime to inherit real estate, and common sense dictates that this is a particularly happy event. We are not here to try to contradict this precept; however, one must realize that in order to take ownership of an inherited home, it is necessary to possess a range of information to be able to cope with all the requirements and avoid unpleasant surprises. An inherited property is much more than that: it has its own intrinsic symbolic value, and it may happen that you may have to divide the inheritance with your loved ones. Acting with all due scruples is precisely why it is even more important.
THE BUREAUCRATIC, LEGAL AND TAX REQUIREMENTS
These are essentially 3 obligations that it is good to know thoroughly as ignoring certain steps runs the risk of jeopardizing the whole operation.
● The acceptance of the inheritance, which is done through a special notarial deed. This is a very important formal step since, by accepting an inheritance, you also accept the debts of the deceased. We always recommend checking the estate status of the person who left us assets and property in order to prevent potential creditors from retaliating by attacking our assets.
● Second, the declaration of inheritance. This is a document that attests to the passing of the de cuius (technically, whoever bequeathed us property) and our status as legal heirs. Currently, it can be filled out electronically and only needs to be submitted once: if there is more than one heir, it will be necessary to choose an appointed heir to handle the process. The declaration of inheritance is used to determine the amount of inheritance tax, a tax, that if not paid, prohibits by law to sell any real estate.
● The payment of the inheritance tax, which takes into account several parameters, because no: in the eyes of Italian law, all heirs are not equal. The principle is simple: the taxed percentage of the cadastral value varies as the bond uniting the de cuius and heir recedes. We encourage you to consult the website of the Internal Revenue Service for more information. Here we suffice to know that while spouses, children or parents will pay a 4% tax only if the deductible (i.e., the value of the property) exceeds 1 million euros, an heir with no kinship ties will pay 8% with no minimum value. Italian law protects kinship, and taking this into account is crucial.
THE KEY IS TO SEEK, FIND AND OBTAIN AN AGREEMENT
If we limited ourselves to this series of bureaucratic steps, we would not return the reality that hundreds of thousands of Italian families experience and have experienced when taking over as heirs: sometimes, unfortunately, relatives are snakes.
It is not uncommon for the most disparate disputes to arise. Often the moment of dividing the inheritance becomes "the day of reckoning," the detonator that ignites years of repressed disagreements and grudges. Whatever their nature, the advice we feel like giving you is only one: understanding is good for everyone, whereas disagreement hurts both your wallet and your estate. You will have time to clarify (or retaliate, one would jokingly say) another time. The goal that unites you with your co-heirs should be to enhance the value of your property as much as possible: leaving it bare or unsold while you are fighting a lawsuit to determine its fate only negatively impacts its value.
Do you have any questions about this topic? Email us at immobiliaresep@gmail.com. We will be happy to help you.