Are you an heir? The allocation of debts under the Italian succession
The Italian allocation of debts is established by articles 752 and 754 of Italian Civil Code. Specifically, the law seeks to regulate internal relationship between coheirs and external relationships between them and creditors.
Coheirs are expected to contribute to the payment of debts in proportion of the share for each of them, given that the testator did not agree otherwise. Testator’s debts do not involve coheirs while automatically impacting all of heirs in proportion to their shares. However, the same principle is not valid for inheritance credits. In fact, testator’s credits are not automatically shared between coheirs based on their share. But, on the contrary, the debts will be part of the whole inheritance. The testator has the power to change debts allocation and refusing the proportionality of debts in relation to inheritance share.
Art. 754 establishes rules for external relationships between coheirs and testator’s creditors. The latter have the right to claim the performance from each of coheirs. The testator has the right to establish heirs’ shared liability while agreeing with the creditor that they will be liable only in proportion to their inheritance share. A further exception occurs in the event an obligation is indivisible when the property is encumbered by a mortgage.
VGS lawyers have a great experience in assisting individuals arranging their inheritance position. Our lawyers were able to offer assistance to heirs and coheirs struggling with testator’s debts. Please fill the form on this page if you wish to be contacted within the next 24 hours.