What happens if a Declaration of Succession misses its deadline?
By law, succession must be declared within 12 months of its opening (generally considered the date of the testator’s death), with penalties levied for both delays and omission. Despite the threat of sanctions, delays do occur owing to lack of interest, discord between heirs, and a desire not to pay the related taxes.
If the deadline has been exceeded, but the tax assessment has not yet taken place, the heirs are allowed to regularize their tax position despite any delay, omission or failure to pay sufficient taxes or duties. This option involves self-reporting to Agenzia delle Entrate (equivalent to the American IRS, Internal Revenue Service). In addition to payment of the amount due, it also requires payment of interest, which varies depending on the length of the delay: from a few euros (for a slight delay) to several hundred euros (for months of delay). In the event this obligation is not complied with, the seriousness of the penalties naturally increases.
In cases where Agenzia delle Entrate has identified a failure to file the Declaration of Succession, the penalty can range from 120% to 240% of the amount due. However, pursuant to Article 27 of Legislative Decree 346 the agency must issue any penalties within five years of the succession’s deadline.
With the above in mind, it should be clear that requesting liquidation of inherited sums from a bank without a Declaration of Succession certified by Agenzia delle Entrate is not possible; nor is it possible to transfer real estate to the legitimate heirs without notifying the agency.