Italian banks require the payment of inheritance tax

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The law on the taxation of inheritance prohibits banks from paying any sums to heirs without proof that the Declaration of Succession has been filed and the correct inheritance taxes, paid. It is a mandatory tax provision; therefore, given this legal obstacle, all goods going to heirs remain uncollected and are, as such, non-interest bearing, both in terms of compensation and rights.

This was the recent decision rendered by The Supreme Court of Italy, leading to the ordinance of April 13, 2021.


In this particular case, a credit institution was sued by the heir of a current account holder. He asked for the bank to pay compensation for the failure to pay interest on a sum of over 900 thousand euros, held during the period between the opening of succession (1987) and the declaration of succession and payment of the taxes (1997). In essence, the bank paid the value of the equity securities a decade after the collection, without paying interest. In the court of the first instance, the heir’s claim for compensation was accepted, then was rejected on appeal. This led to the case being heard by the Supreme Court.

In the case in question, Legislative Decree 346/1990 in the matter of succession and tax payment is relevant: in particular, paragraph 4 of art. 48 entitled “prohibitions and obligations for third parties”. The law prohibits the bank from paying the transferable securities belonging to the assignor (i.e. the deceased) before filing the succession and tax payment.

In other words, the debtors of the deceased (such as the bank) cannot pay the sums due to the heirs, without proof of the presentation of the succession and tax payment. 

The rationale is that it forces heirs to fulfill the tax obligation imposed on them. 


The prohibition of payment, therefore, as per Italian law, prevents:

– the heir of the depositor to request the restitution of sums;
– and payment by a custodian bank.

Consequently, the interest is not due, because the debtor (the bank) complies with a mandatory tax rule.
Civil Cassation, Ordinance 9670/2021

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