The tax obligations of heirs and legatees in a succession

Inheriting an estate not only involves receiving its assets and benefits but also taking on a number of responsibilities, including the payment of inheritance taxes. Heirs and legatees are directly responsible for settling these taxes, and the Italian legal framework outlines specific obligations for each party, as well as several available payment methods. This article provides a detailed overview of these responsibilities.

Joint liability of heirs for tax payments

Heirs are jointly liable for the full amount of inheritance tax owed, both for their own share and that of the legatees. This means each heir may be held accountable for the total tax liability, even if they have accepted the inheritance under the benefit of inventory. In such cases, however, their liability is limited to the value of their own inheritance share.

Stage of call to inheritance

Until the inheritance is formally accepted by all entitled parties, even those who have not yet accepted it are jointly liable for any tax due, though only up to the value of the inherited assets in their possession. The Registry Office may request that a deadline be set for accepting the inheritance or, if necessary, appoint a curator for the unclaimed estate.

Tax liability of legatees

Unlike heirs, legatees are liable solely for the inheritance tax related to their specific legacy, that is, the portion of the estate designated for them.

Inheritance tax payment methods

Inheritance tax must be paid within 60 days of receiving the tax assessment notice. Failure to comply results in the accrual of default interest at a rate of 4.5% per half-year. Payment may be made in cash or via alternative means such as government bond coupons, or bank and postal credit instruments.

Taxpayers may opt to pay in installments — up to eight quarterly payments, or twelve if the amount exceeds €20,000 — provided that at least 20% of the total is paid within the initial 60-day period. Installment plans are not available for amounts under €1,000, and interest is calculated from the date of the initial 20% payment.

Loss of installment privileges and minor default exceptions

Failure to pay either the initial 20% or any subsequent installment on time results in the loss of the right to pay in installments. However, the law allows an exception in cases of minor default — defined as underpayment by no more than 3% or €10,000, or a payment delay not exceeding seven days.

In-kind payment of taxes through transfer of assets to the state

Inheritance tax may also be paid in full or in part by transferring cultural assets to the State. The proposal for such a transfer must be submitted within the regular tax payment deadline and must include a detailed description of the assets offered. The Ministry of Cultural and Environmental Heritage is responsible for evaluating both the value and public interest of the proposed assets.

Refunds for overpaid or undue taxes

Taxpayers are entitled to request a refund if taxes were paid in excess or unduly. The request must be submitted within three years from the date of payment or from the date the right to a refund arose. The application should be filed with the competent office and will accrue default interest starting from the submission date.

Statute of limitations and disputes

The tax authority’s right to collect assessed inheritance taxes expires after ten years. Taxpayers may contest the tax through a formal appeal, although this does not suspend the collection of the principal amount due. If the final amount determined through the dispute is less than what has already been paid, the excess will be refunded automatically.

Italian law sets out a range of detailed obligations for heirs and legatees with respect to inheritance tax payments. Joint liability, various payment options, and the possibility of settling tax obligations by transferring assets to the State provide flexible tools for managing inheritance-related taxation. To navigate these procedures effectively, individuals are encouraged to contact Agenzia delle Successioni, whose professionals can provide expert guidance on the appropriate course of action.