Dissolving Inheritance Co-ownership in Italy: Practical Steps and Legal Advice for Heirs

When you inherit property in Italy together with other heirs—siblings, cousins, or other relatives—you enter a legal situation known as hereditary co-ownership (comunione ereditaria). This means that all heirs share ownership of the inherited estate until it’s officially divided.

These shared inheritances can often cause tension and confusion, especially when decisions need to be made about managing or selling the assets. Understanding how to dissolve the co-ownership and move toward an individual share is crucial—not only for peace of mind, but also for proper Italian estate planning, dealing with inheritance tax in Italy, and even selling inherited property in Italy.

What Is Hereditary Co-ownership?

Under Italian inheritance law, when multiple heirs inherit together, they all co-own the estate—even if some contributed more or live abroad. Each heir has equal rights to the entire estate until the assets are formally divided, either through agreement or court ruling.

For example, if two children inherit their parent’s apartment in Rome, they both co-own 100% of the apartment until they legally divide the property.

How Can the Co-ownership Be Dissolved?

There are several legal routes to end the co-ownership and give each heir their individual share:

1. By Mutual Agreement

The quickest and most cost-effective method. The heirs agree on how to divide the property or decide to sell the inherited assets and split the proceeds. This is done before a notary and formalized in a division deed.

This is especially recommended when you’re planning to sell inherited property in Italy or avoid conflicts. It’s also tax-efficient under current Italian estate tax rules.

2. By Selling or Transferring Shares

An heir may choose to sell their portion to another co-heir, or buy out the others to become sole owner. However, all co-heirs have a legal right of first refusal on any sale (called diritto di prelazione).

3. By Adverse Possession

In rare cases, one heir who has used and maintained the property alone for over 20 years may claim full ownership through adverse possession. This requires a court decision and evidence of uninterrupted, exclusive possession.

4. Through Court Action

If no agreement is reached, any heir can request a judicial division through the Italian courts. This process includes:

• Mediation attempt
• Asset evaluation (often by a court-appointed expert)
• A judge’s decision on how to split or sell the estate

This route is lengthy, costly, and often leads to the sale of the inherited property with proceeds divided among the heirs. It should be considered a last resort.

Key Phases of the Dissolution Process

Though every case is unique, the general process follows these steps:

1. Initial Discussions: Heirs attempt to reach an agreement.

2. Property Valuation: Experts assess the value of assets—especially important for real estate.

3. Proposal Drafting: A lawyer may help create a division plan, especially if the estate is complex.

4. Formal Division: If agreed, the division deed is signed before a notary. 5. Court Involvement (if needed): A judge will decide if no agreement is possible.

What About Taxes and Legal Fees?

Under Italian succession law, once the estate is divided, each heir is individually responsible for inheritance tax Italy applies. This includes probate in Italy and any donation in Italy if assets are transferred rather than inherited.

In a judicial division, legal and technical fees can be significant. Typically, the losing party may be required to pay the court costs, although expenses are often shared.

Can a Will Complicate Things?

If a previously unknown will is discovered after the estate has been divided, it could reopen the case and potentially change how the assets are distributed. This underlines the importance of ensuring all relevant documents are found before proceeding.

Final Advice for Heirs

Resolving shared inheritance can be stressful, but it doesn’t have to turn into a legal battle. Here’s some key advice:

• Seek agreement first: An amicable solution is always faster and cheaper.
• Hire professionals: Notaries, inheritance lawyers, and tax advisors are essential in navigating Italian inheritance law.
• Think long-term: Whether you’re a US citizen inheriting property in Italy or part of a large family, it’s crucial to consider the inheritance tax and property implications ahead of time.

Keeping communication open among heirs and seeking professional advice early on can save time, money, and relationships.

VGS Family Lawyers is a law firm that specializes in family law matters such as inheritance, separation and divorce, child custody, and more.

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