Skip to content With Ruling No. 318/2025, the Italian Revenue Agency (Agenzia delle Entrate) addressed an issue of considerable practical relevance in the administration of estates, namely the correct determination of the bank current account balance to be included in the taxable estate for inheritance tax purposes, where transactions were carried out on the date of death but recorded by the bank only at a later time.
The question submitted to the Tax Authorities
The request for clarification was filed by a taxpayer acting as heir of a person who passed away in December 2024. The interpretative doubt concerned the determination of the taxable base of the estate with reference to an interest-bearing bank current account.
Specifically, the bank had issued the customary succession statement (so-called letter of existence of succession), indicating an accounting balance that did not consider a cash withdrawal of EUR 60.00 made by the deceased on the very day of death. The credit institution clarified that the communicated amount corresponded to the accounting balance as at the date of death, excluding transactions with the same value date that were recorded later.
The applicant therefore asked whether, for inheritance tax purposes, the relevant amount should be the “accounting” balance communicated by the bank or the balance existing at the time of death, considering transactions completed prior to death, even if not yet formally recorded.
The taxpayer’s position
According to the taxpayer, the taxable value of the current account should be determined based on the actual balance existing as at the date of death, including all debit and credit transactions completed prior to that time. From this perspective, the ATM withdrawal—having been completed with the physical delivery of cash to the deceased before death and having a value date coinciding with that day—should reduce the balance to be declared in the inheritance tax return, regardless of the subsequent accounting date.
The relevant legal framework
In providing its opinion, the Italian Revenue Agency first referred to the Consolidated Act on Inheritance and Gift Tax (Testo Unico delle disposizioni concernenti l’imposta sulle successioni e donazioni – Legislative Decree No. 346/1990, as amended by Legislative Decree No. 123 of 1 August 2025).
Pursuant to Article 1 of the Consolidated Act (now Article 87 of Legislative Decree No. 123/2025), inheritance tax applies to transfers of assets and rights upon death. Article 7 of the Consolidated Act, as well as Article 83 of Legislative Decree No. 123/2025, provides that tax rates apply to the overall net value of the transferred assets and rights. Article 8 (now Article 94 of Legislative Decree No. 123/2025) further specifies that such value must be determined with reference to the situation existing at the time the succession opens.
With specific regard to receivables included in the estate, Article 18 of the Consolidated Act provides that, in the case of interest-bearing receivables, the taxable base is determined by reference to their amount inclusive of interest accrued up to the date of death.
The legal nature of the bank current account and reference to case law
The Tax Authorities also recalled the civil law rules governing bank current accounts under Article 1852 of the Italian Civil Code, highlighting that such relationships are characterised by the automatic and progressive set-off of debit and credit transactions.
In this respect, the Agency relied on the settled case law of the Court of Cassation, in particular judgment No. 1846/1998, according to which accounting entries relating to individual transactions have merely accounting relevance and declaratory effect, and do not affect the moment at which the transactions themselves are completed. For determining the final balance of a current account, reference must be made to transactions that have already been completed, regardless of their formal accounting entry.
The conclusion of the Italian Revenue Agency
Considering these considerations, the Italian Revenue Agency concluded that, for inheritance tax return purposes, the balance of a bank current account must be determined by considering all debit and credit transactions completed prior to the account holder’s death.
In the case at hand, the ATM withdrawal carried out on the date of death—having been completed through the delivery of cash to the deceased before death—must be taken into account in determining the balance of the bank current account to be reported in the inheritance tax return, even if it was recorded by the bank at a later date.
Consequently, the heir is entitled to deduct the amount of the withdrawal from the accounting balance indicated in the succession statement, provided that the transaction is duly documented.
Practical implications
This clarification is of significant practical relevance for professionals and taxpayers, as it reiterates that, for inheritance tax purposes, the economic and legal substance of transactions prevails over the mere accounting data provided by banks. Accordingly, when preparing inheritance tax returns, it is essential to carefully review transactions carried out close to the date of death, to correctly determine the taxable base and avoid undue overstatement of the estate’s assets.