Can You Donate to Your Grandchildren Without Violating Your Children’s Legitimate Rights?

Many families wonder whether it is possible—and lawful—to donate assets directly to grandchildren, bypassing the children in order to avoid a “double transfer” and reduce future inheritance taxes. While this may seem like a practical and generous solution, the law surrounding donations and legitimate shares imposes important limits. Understanding these rules is essential for anyone planning their estate.

How Donations Work Under Italian Law

A donation is a contract in which one person, out of pure generosity, transfers an asset to another without receiving anything in return (Art. 769 Civil Code). For a donation to be valid, it must be executed by a notary in the presence of two witnesses, except for modest-value movable property, where the formalities may be relaxed (Art. 783).

Because it is a contract, the beneficiary must expressly accept the donation. This acceptance can occur at a later moment, but always through a public deed (Art. 782).

Understanding the Legitimate Share

Italian inheritance law reserves part of a person’s estate for specific “legitimate heirs”: the spouse, children, and, in their absence, the parents (Art. 536). These individuals cannot be fully excluded from the succession. If a will or a lifetime transfer (such as a donation) infringes on their reserved portion, they may challenge it.

Donations that reduce a legitimate heir’s share may be contested within ten years of the donor’s death. What remains after the protected quota is the disposable share, which the deceased may freely assign to anyone, including grandchildren.

Can a Grandparent Give Directly to Grandchildren?

A donation made directly to grandchildren may violate the children’s legitimate share if it exceeds the disposable portion. Grandchildren are not legitimate heirs unless they replace their deceased parents in the line of succession. Only in that scenario do they inherit the same quota that would have belonged to their parents. 

Example

Paolo has three children, but one has died. Paolo’s grandchild replaces the deceased parent and receives precisely the share the parent would have inherited—becoming a legitimate heir alongside the surviving children.

Outside this situation, grandchildren do not have automatic rights, and a donation to them may reduce the children’s legitimate share.

The Problem With “Skipping a Generation”

In the scenario described—where an elderly parent (Tizio) donates directly to a grandson (Caietto) at the request of his son (Gaius)—the donation still infringes on Gaius’s rights. Even if Gaius initially agrees to the arrangement, he can later challenge the donation if circumstances change.

Example

Tizio donates to his grandson Tizietto the portion that would have gone to his son Caio. Caio originally approves the plan. Years later, after Tizio’s death, Caio faces financial hardship and disputes arise with his son. Caio may now challenge the donation, claiming it violated his legitimate share.

This illustrates why “skipping a generation” to save on transfer costs is legally unsafe: consent given in advance can always be withdrawn later.

Why Consent Doesn’t Fix the Problem

Article 458 of the Civil Code renders null any agreements that dispose of an inheritance in advance. Therefore, even if a child signs a document stating they renounce their share in favor of their own children, such an agreement has no legal value. It cannot prevent the heir from later contesting the donation.

Conclusions

You can donate to your grandchildren without infringing upon your children’s legitimate share only if the value of the donation is within the limits of the disposable portion; Otherwise, the heir whose rights have been violated can challenge the act within ten years of the donor’s death.

Grandchildren are not legal heirs unless they take the place of their deceased parents.

VGS Family Lawyers is a law firm that offers assistance to English-speaking clients with interests in Italy.

In case you need assistance, please write to: info@vgslawyers.com.