Inheritance and donation - Inheritance tax in Italy - The Supreme Court excludes the fictitious reunion of donated assets in the inherited estate

The Supreme Court has pronounced with the order N. 22738 of 20th October 2020 on a question raised by the Agenzia delle Entrate (the Italian Revenue Agency).

The Revenue Agency sustained that the donations made during the lifetime by the de cuiushad to be added to the assets covered by the inheritance and that, therefore, for the purposes of inheritance tax and the allowances provided for the heirs had to be considered both the value of the assets (relictum) at the time of the death of the de cuius, and the value of the assets donated (donatum) previously.

The Supreme Court, with the above-mentioned order, made it clear that the inheritance tax is applied (the allowances are still valid) to the portion of the inheritance or legacy; the value of donations made (and already taxed) in life by the de cuius should not be added to it.

Milano, January 4th 2021.

Avv. Giovanni Babino