The tranquil dolce vita lifestyle of Italy has always been a great appeal in Europe but especially to the British. Owning a second property in places like Tuscany, Le Marche or Puglia is undeniably appealing, and also represents in many cases a good investment.
The only problem with holiday homes is that too many people simply assume that their English wills are a “cover-all” and that a property abroad will be dealt with under the same terms. However, this is not correct. The rule is that English property like a house, a flat or land in England will pass in accordance with English law of succession, by Will or intestacy, while immovable property anywhere else will follow the law of the country where it is situated. The bottom line is that UK law does not govern immovable assets abroad, and English rules will be difficult to impose in a foreign jurisdiction.
This means that the property may not pass to the chosen heirs, but instead follow local intestacy rules and end up in the hands of very distant relations which may then give rise to lengthy and expensive proceedings to correct the situation. Also, bearing in mind that not every country recognises Civil Partnerships and common law marriages, local rules could prove very unfavourable in some cases.
The best solution for peace of mind is to have a separate will drafted by a professional who understands the local idiosyncrasies and how the rules are applied to ensure that the testator wishes will be understood and carried out in respect of the property.
Many people who are considering buying in Italy look at writing an Italian will as an extra and unnecessary expense, but the truth is that it is a very good precaution, mainly for two reasons. The first is that in most European countries, including Italy, the estate passes directly to the beneficiaries and not to the Executors. This could result in a “double transfer” where the property passes firs to the Executor and then to the beneficiary, and double inheritance tax charges. The other reason is that if there is no Italian will, the English one will have to be translated and notarised together with all relevant documents, which may cause a great amount of delay in transferring the holiday home, and may even lead to penalties for late payment of the taxes due.
Having a separate will to dispose of your assets in Italy is therefore a logical and quite necessary measure, and one which could ultimately save a great deal of money and time, not to mention anxiety over the destination of the holiday home.
This article is not intended to be formal legal advice and is simply an initial introduction to the area of law. Giambrone Law ILP accepts no liability or responsibility towards any statement written in this article. For specific legal advice, please contact us.
Giambrone Law ILP
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