Awareness of solidarity bequests is on the rise: 82% of those over 50 know what it is and have heard of it (compared to 79% in 2022 and 73% in 2021).
Di Nella: “What can be left? A sum of money, real estate, valuable objects, even securities or insurance policies.”
5.5 million Italians aged over 50 have already planned a solidarity bequest in their wills or are inclined to do so. However, according to a recent survey conducted by Walden Lab-Eumetra for the Solidarity Bequest Committee, the number of undecided individuals is increasing (35% compared to 27% in 2022). The deterrent? Uncertainty about the future: 32% are afraid of depriving resources from heirs, while 28% express concern about the job insecurity of their children and grandchildren. But something is beginning to change, says Rossano Bartoli, spokesperson for the Solidarity Bequest Committee and president of the Lega del Filo d’Oro (Golden Thread League).
“We are witnessing a genuine cultural shift,” says Bartoli. “We can say that the generosity of Italians has not declined even in the face of events over the past 10 years. As for the future, we are aware that there is still work to be done to overcome some prejudices and further spread the culture of solidarity and bequests,” he adds. Indeed, according to the data, although 82% of those over 50 claim to know what a solidarity bequest is and have heard of it, some believe that only those without direct heirs (according to 51% of respondents) and those with substantial wealth (43%) are eligible to make such decisions.
Solidarity Bequest: What It Is and How It Works
Let’s start by providing a formal definition. “A will is a formal, revocable act by which a person disposes of all or part of their estate for the time when they cease to live,” explains Maria Grazia Di Nella, founder and owner of the Di Nella Legal Studio, to We Wealth. “There are three types of wills: holographic, public, and secret. The holographic will is handwritten by the testator, must have a specific date, and must be signed by the testator. The public will is received by a notary in the presence of two witnesses, while the secret will can also be made with electronic support; however, it is essential that it is autographed by the testator on each half sheet and at the end of each sheet and then delivered to a notary again in the presence of two witnesses.”
Within wills, Di Nella continues, it is possible to include solidarity bequests. In other words, this refers to the allocation of one’s estate or part of it to one or more associations, non-profit organizations, or charitable entities engaged in humanitarian, social, cultural, scientific, or research activities. “However, be cautious. Solidarity bequests must not infringe upon the legitimate portion because, in the event of the rights of legitimate heirs being infringed, such provisions may be subject to reduction,” explains the expert. “Italian law provides strong protection for close relatives, so there are categories of heirs who cannot be excluded from the inheritance or have their inheritance rights compromised. The closer the family relationship, the greater the share of the inheritance that the heir is entitled to receive. If the testator is married but has no children, the spouse is entitled to at least half of the estate; consequently, the testator can allocate a solidarity bequest on the other half. If, in addition to the spouse, there is a child, each is entitled to one-third, and only the remaining third can be allocated as a solidarity bequest,” Di Nella explains.
What can be bequeathed? This can include a sum of money, stocks, investment securities, as well as movable property (such as artwork or jewelry), immovable property (such as an apartment), or a life insurance policy. “In any case, for the solidarity bequest to be valid, the entity to which the bequest is intended must be precisely indicated, and the purpose of the bequest must also be clearly specified,” explains Di Nella. “For example, if it is an association engaged in various areas, it must be specified for what purpose within that association the donated estate is intended to be used.” One last aspect to consider, adds the expert, is that solidarity bequests are not subject to taxes. However, if the bequest is made to an entity that does not have the qualification of a non-profit organization, the tax exemption may be reevaluated. “It may not enjoy the exemption if, in the five years following the bequest, the organization in question does not demonstrate that it has used the received funds to pursue the purpose for which the testator had bequeathed them,” Di Nella concludes.
