The days around All Saints', traditionally a time for remembrance and reflection, are a good moment to tackle a subject we tend to keep putting off: succession planning — deciding ahead of time who we want our assets to go to when we're no longer here. It's a topic people tend to avoid, almost as if it were taboo, but we see it as an act of real kindness towards the people we love, who won't have to worry — or worse, argue — over who gets what, at an already difficult time.
Not just a topic for the wealthy few
Talking about succession doesn't mean dealing only with large estates — it means thinking about your family's well-being. Planning ahead means choosing how to distribute property, savings or business shares, rather than letting the law decide for you.
Italian law provides for forced heirship shares (portions reserved by law for a spouse and children), which don't always reflect the real needs of a modern family. A clear plan, on the other hand, avoids conflict and eases the stress on loved ones at an already delicate time. It's worth remembering that in Italy, most family wealth is tied up in property: without planning, the risk is fragmented ownership and lost value.
One example worth keeping in mind: four properties and four heirs can mean each heir ends up owning 25% of every single property.
Which tools do you need to pass on wealth?
Anyone wanting to pass on their wealth today has several options.
Gifts allow assets to be transferred during one's lifetime, but they need to be made explicit: a simple bank transfer isn't enough. Life insurance also plays a central role: the capital accrued falls outside the estate and goes straight to the beneficiaries, with no inheritance tax and no bureaucratic delays.
Alongside these tools there are more elaborate solutions, such as trusts and fiduciary mandates, which allow complex estates to be managed or vulnerable heirs to be protected.
It's also worth remembering the handwritten will — written, dated and signed entirely by hand — a simple and valuable tool. It takes a few minutes, costs nothing, and represents an act of clarity and responsibility. It's often assumed that complex documents or notarial procedures are required, but even a gesture this direct can bring order and peace of mind.
In short, choosing the right tool depends on the nature of the estate and personal goals. What they all have in common is the ability to turn a sensitive subject into a plan — one that protects and adds value to what's been built.
Italy's tax surprise
In a country often accused of taxing too much, Italy applies some of the lowest inheritance taxes in Europe. Spouses and children pay 4%, but with a €1 million tax-free allowance each, meaning that in most cases nothing is owed at all. Siblings pay a 6% rate with a €100,000 allowance, other relatives pay 6% with no allowance, and unrelated beneficiaries pay 8%. By comparison, France and the UK reach 40-45%. This makes Italy something of a "tax haven" on succession — although careful planning remains essential to make the most of these advantages.
Protecting and passing on wealth isn't a topic for a privileged few — it's a responsible choice that concerns every family. In Italy, surprisingly, favourable tax conditions can make this process far less stressful. Planning isn't just about thinking of "later" — it's about giving the people around us peace of mind today.
Glossary
- Forced heirship shares: portions of an estate that, by law, must go to specific heirs (e.g. a spouse and children).
- Tax-free allowance: the threshold below which no tax is due. Example: a spouse and children each have €1 million that isn't taxed.
- Trust: a legal instrument through which an estate is entrusted to a third party (the trustee), who manages it according to precise rules set by the settlor.
- Handwritten will: a will written entirely by hand, dated and signed by the testator, valid even without a notary.
