Property donation insurance: how to protect the beneficiary

When receiving a good as a gift, especially one of significant value such as a real estate, it is natural to wonder whether there are risks associated with possible future claims. In our legal system, in fact, a donation is an act that can be contested by legitimate heirs who have been injured in their legitimate share. This can occur even after many years, with the risk of the ownership of the received good being called into question. To protect the recipient of the donation, specific insurance systems have emerged in recent years to protect the donee and future buyers from these potential problems.

Why the donation may be at risk

Italian law protects the legitimate heirs (spouse, children, and, in their absence, ascendants), guaranteeing them a minimum share of the inheritance called the legitimate share. If a deed of donation affects this share, the heirs can take legal action to assert their rights even after the donor's death. The action for reduction can therefore result in the restitution of the donated property or, alternatively, financial compensation to the injured heir.

This risk concerns not only the recipient of the donation, but also any future buyers: a property from a donation can become difficult to sell, precisely because of the fear of litigation. Hence the need for protection tools that provide legal certainty and peace of mind to those who benefit from the donation.

Policies to protect the donee

Insurance companies have introduced specific policies, often called donation insurance, which protect the donee and subsequent owners of the property. These insurance policies are intended to guarantee compensation in the event of an unfavorable judgment for infringement of legitimate rights. In practice, if a judge were to recognize the rights of an heir and order the return of the asset or the payment of a sum, the insurance would intervene by covering the costs.

Coverage usually includes:

• Legal fees for defending the donee in court.
• Financial compensation in the event it is necessary to compensate the legitimate heir.
• Possible loss of the asset, reimbursing the market value if the donee is forced to return it.

This is therefore a very useful protection, which allows you to accept a donation without the fear of future disputes.

The role of the notary and insurance

At the time of the donation, the notary plays a fundamental role: he can recommend the opportunity to take out this type of insurance policy, explaining to the beneficiaries the possible risks associated with inheritance. Insurance, for its part, carries out a preventive assessment of the inheritance situation and any claims of other heirs in order to offer tailored coverage.

Benefits for the real estate market too

An important aspect concerns the marketability of the property. A donated house, without adequate guarantees, can be difficult to sell because potential buyers fear being involved in future inheritance disputes. Taking out donation insurance, however, makes the asset safe for the buyer, who can purchase it without risk.

Insurance systems that protect the recipient of a donated asset are now a valuable tool for providing donees with peace of mind and smoothing out real estate transactions. Before accepting a donation, especially if it involves real estate or highly valuable assets, it is advisable to consider, with the support of professionals such as those at the Agenzia delle Successioni, taking out an insurance policy that protects the donee from any future reduction actions. In this way, whoever receives the asset will be able to enjoy it peacefully, without the fear of disputes that could arise even years later.