Joint Bank Accounts and Succession
The first steps to take in a succession for joint bank accounts are the same as in any other succession, i.e. declaration of succession to the Italian tax authority. The declaration is made by the heirs, or an appointed delegate through a power of attorney, to the authorized (and local) revenue agency (in Italy, Agenzia delle Entrate). It must be made within one year of the opening of succession, which starts at the time of death and occurs in the place where the deceased was most recently domiciled.
In order to notify the bank with which the account is held, the heirs must send, via registered letter, a death certificate, a declaration of succession and a statement with the list of heirs, sworn before a public official (Registrar). If the account requires a “joint signature” for funds to be accessed, the account is frozen until the conclusion of succession. At this point the money is divided among the heirs (and possibly other account holders) according to the allocated shares. If it is a “separate signature” account, the holders have unimpeded access to their funds throughout succession, with the remainder of the account divided among heirs upon its conclusion.
Taxes Involved in a Joint Account Succession
Inheritance tax on shares coming from bank accounts is calculated on the basis of degree of kinship. Spouses and children are taxed 4% of the total sum, with a deductible of 1 million euros each. Siblings are taxed at a rate of 6%, with a deductible of 100,000 euros each. For relatives up to and including the fourth degree, the tax remains 6%, but without a deductible. All other heirs are taxed 8%, likewise without a deductible.