Summary of the article from the scientific journal Trusts e Attività Fiduciarie: Leonardo Arienti, La pianificazione fiscale ai fini donativi e successori mediante il trust: franchigie, coacervo e apporto di terzi inter vivos o mortis causa, in Trusts, 2025, p. 630.
The Italian version of the original article is available on the journal’s website:La pianificazione fiscale ai fini donativi e successori mediante il trust: franchigie, coacervo e apporto di terzi inter vivos o mortis causa – TRUSTS
The authors’ view
The article outlines the recent developments in the taxation of trusts for inheritance and gift tax purposes, with particular focus on the new dual tax regime based on the alternative between the ordinary “exit” taxation and the optional “entry” taxation of transfers into trust.
The document specifically examines the application of tax allowances based on the relationship between the settlor (or third-party contributor) and the beneficiary, while exploring the implications of the repeal of the inheritance aggregation rule (so called Italian coacervo successorio) and the retention of the donation aggregation rule (so called Italian coacervo donativo).
The article also analyzes the tax regime applicable to testamentary trusts and to testamentary transfers – including those made by third parties – of assets into trusts.
The analysis concludes with a reflection on the effectiveness of trusts as instruments for generational wealth and succession planning, as well as for tax optimization purposes.
§ 1. Introductory Remarks
Legislative Decree No. 139 of 18 September 2024 introduced an organic framework for trusts in the context of inheritance and gift tax, significantly innovating the tax treatment of the instrument. The main changes concern: the dual tax regime, specific rules for testamentary trusts, identification of taxable persons, application of allowances based on the relationship between settlor or third-party contributor and beneficiary, and the abolition of the inheritance aggregation rule. These provisions apply to both inter vivos and mortis causa transfers, requiring a coordinated analysis for effective estate and tax planning.
§ 2. The New Dual Tax Regime under Article 4-bis of the TUSD
Article 4-bis regulates inter vivos and testamentary trusts under two alternative regimes:
- Ordinary “exit” regime: tax due at the time of the final allocation of assets to beneficiaries; allowances applied based on the relationship with the settlor; value determined at the date of allocation; application of the gift aggregation rule; exclusion for gifts of modest value and certain ordinary expenses.
- Optional “entry” regime: immediate taxation on the value of assets transferred; allowances based on the relationship with the beneficiary; taxable person identified as the settlor (inter vivos trust) or the trustee (testamentary trust); exemption of the beneficiary from future taxation; advantages in terms of certainty and avoiding future tax increases.
The choice between regimes allows targeted planning based on the nature of assets, beneficiaries, and trust structure.
§ 3. Testamentary Trust and the Dual Tax Regime
For testamentary trusts, the ordinary method is exit taxation, applying inheritance allowances and rates. The optional regime may be exercised by the trustee at the opening of the succession or at the time of the transfer. The rules apply both to trusts established by will with simultaneous transfer of assets and to testamentary transfers to pre-existing trusts. The civil-law qualification of the transfer (inheritance, legacy, institutio ex re certa) is relevant.
§ 4. Transfers to a Trust by a Third-Party Contributor
Third parties other than the settlor may transfer assets or rights into a trust, either inter vivos or mortis causa. In the absence of specific rules, taxation follows by analogy the criteria in Article 4-bis, based on the relationship between third-party contributor and beneficiary.
§ 5. Trusts and the Application of Gift and Inheritance Allowances
Under the exit regime, the following TUSD rates and allowances apply:
- 4% above €1,000,000 (spouse, direct-line relatives);
- 6% above €100,000 (siblings);
- 6% with no allowance (other relatives up to the 4th degree and certain in-laws);
- 8% with no allowance (all others).
If the beneficiary’s category cannot be determined (purpose trusts, conditional beneficiaries), an 8% rate applies without allowance. For beneficiaries with severe disabilities, an allowance of €1,500,000 and the benefits under Law No. 112/2016 apply.
§ 6. Determining the Value of Assets and Rights Transferred to a Trust
The value is determined under TUSD rules: for real estate and rights in rem, receivables, securities, and other assets (fair market value). Under the exit regime, the value is calculated at the time of final allocation, with possible changes over time; under the entry regime, the value is fixed at the time of transfer.
§ 7. Abolition of the Inheritance Aggregation Rule and Application of the Gift Aggregation Rule
The inheritance aggregation rule has been abolished, while the gift aggregation rule (Article 57 TUSD) remains, requiring that the updated value of previous gifts from the same settlor or third-party contributor be added to the current transfer for allowance calculation purposes. This affects planning in cases with multiple liberalities.
§ 8. Tax Planning through Trusts
Inter vivos succession trust: established during the settlor’s lifetime, may produce post-mortem effects; option to choose between exit and entry taxation; possibility to combine inter vivos and testamentary contributions to benefit from double allowances.
Testamentary trust: established by will; single allowance; ordinarily taxed on exit, with the trustee able to opt for entry taxation; same rules apply to contributions from third parties.
§ 9. Conclusion
The reform has systematised the tax regime for trusts, introducing a choice between exit and entry taxation and abolishing the inheritance aggregation rule. This strengthens the trust’s role as an efficient and flexible vehicle for transferring wealth, adaptable to the estate, asset values, and the chosen structure, whether inter vivos or mortis causa.
