The principle of inheritance collation is the mechanism whereby, at the time of succession, certain gifts made by the deceased during their lifetime to their children, their descendants and their spouse are taken into account in the division of the estate. The aim is to take into account what certain co-heirs have already received prior to the opening of the succession, so as to correctly determine the estate to be divided.<\/p>\n\n
This does not necessarily mean that the recipient of a donation must physically return the asset. Depending on what has been donated and the provisions of the Civil Code, the transfer may take place in kind, by set-off or, in the case of sums of money, in accordance with specific rules.<\/p>\n\n
The principle of equalisation is governed by Articles 737 et seq. of the Civil Code and applies to certain persons who are entitled to a share of the estate, subject to the exceptions provided for by law and any waiver of equalisation stipulated by the deceased.<\/p>\n\n
The basis of collation lies in the need to take account of the gifts that the deceased made during their lifetime to certain persons who are entitled to a share of their estate.<\/p>\n\n
In practical terms, a gift received by a child may be regarded, in relations with the other co-heirs, as an advance on the share of the estate to which they would subsequently have been entitled. At the time of the division of the estate, what has been received may therefore affect the determination of the shares and the allocation of the remaining assets.<\/p>\n\n
Consider, for example, the case of a parent with two children who, during their lifetime, made a gift to only one of them. If that gift is subject to collation, the division takes into account not only what remained in the deceased\u2019s estate, but also what one of the children had already received.<\/p>\n\n
A collation therefore does not entail the revocation of the gift and does not necessarily result in the physical return of the asset to the estate. Rather, it serves to take account, at the time of the division of the estate, of the dispositions of assets made by the deceased during their lifetime.<\/em><\/p>\n\n This institution also presupposes the existence of a community of heirs and an estate to be divided. The Court of Cassation has clarified that, if the estate has been entirely depleted through gifts or bequests and there is no remaining estate to be divided, there is no basis for collation, without prejudice to any protection afforded by other means, such as an action for reduction.<\/p>\n\n Article 737 of the Civil Code sets out the persons required to make a contribution to the estate: children, their descendants and the spouse who are entitled to a share of the estate must contribute the value of anything they received from the deceased by way of a gift, whether directly or indirectly, unless exempted.<\/p>\n\n Not all heirs are therefore subject to this obligation. The person who has received the gift must belong to one of the categories specified by law and be an heir to the estate.<\/p>\n\n The following are interested:<\/p>\n\n A brother, a sister or a person outside the family who has received a gift is not, by that fact alone, subject to the equalisation provided for in Article 737.<\/p>\n\n These rules may apply both to intestate succession and, where the conditions are met, to testamentary succession. The existence of a will therefore does not automatically preclude collation.<\/p>\n\n The acceptance of an inheritance is also significant. Anyone who renounces an inheritance does not take part in the division as a co-heir and is therefore not obliged to contribute to the estate in that capacity.<\/em><\/p>\n\n The donation received may, however, continue to have implications in other aspects of succession, particularly in determining the disposable portion and in safeguarding the rights of any statutory heirs. The research material also expressly highlights this distinction.<\/p>\n\n The scope of the collation is not limited to gifts formalised by a specific deed of gift. Article 737 refers, in fact, to what the co-heir has received from the deceased by way of a gift, whether directly or indirectly.<\/p>\n\n Both a direct donation and certain gifts made through different transactions may therefore be of significance.<\/p>\n\n One of the most common scenarios involves a property donated to a child whilst the donor is still alive. In the case of property, Article 746 of the Civil Code provides that collation is to be effected either by returning the property in kind or by attributing its value to one\u2019s share, at the discretion of the donor. However, this choice is not always available: if the property has been sold or mortgaged, collation is effected solely by attribution.<\/p>\n\n When property is allocated by attribution, its value at the time the succession commences is what counts. The Court of Cassation reaffirmed in 2024 that the value attained after the time of division must not be taken into account.<\/p>\n\n Sums of money donated by the deceased during their lifetime may also be subject to collation.<\/p>\n\n First of all, however, it is necessary to verify that the money received was in fact a donation. A bank transfer or money transfer from a parent to a child may, in fact, serve different purposes: it could, for example, be a loan, a repayment or the payment of a normal maintenance expense. For this reason, not every sum received should automatically be considered a gift. The research literature also emphasises this distinction.<\/p>\n\n Where, however, the money in question has actually been donated and is subject to set-off, the Civil Code lays down specific rules. Put simply, anyone who has already received a sum from the deceased must take this into account when the estate is divided and, as a result, may receive a smaller share of the money in the estate.<\/p>\n\n If the funds available in the estate are insufficient, the additional provisions set out in Article 751 of the Civil Code shall apply.<\/p>\n\n This mechanism differs from the allocation-based collation applied to other assets: this is precisely why it is useful to deal with the donation of sums of money separately.<\/p>\n\n An indirect gift \u2013 that is, a gift made through a transaction other than a standard gift agreement \u2013 may also be included in the estate.<\/p>\n\n A common example is that of a parent who covers the cost of purchasing a property that is registered in their child\u2019s name, or who pays off their child\u2019s debt or mortgage. Even in such cases, however, it is necessary to ascertain the true nature of the transaction and distinguish between a gift and a loan, a repayment or maintenance payments.<\/p>\n\n The available documentation may therefore prove crucial to understanding what actually happened.<\/p>\n\n For further information on wealth planning and succession, please refer to the section of our firm\u2019s website dedicated to Wills, Inheritance and Trusts, which also covers gifts, declarations of succession and the division of assets amongst heirs.<\/p>\n\n The equalisation of estates does not apply solely to assets or sums of money transferred by way of an actual gift. In some cases, expenses incurred by the deceased for the benefit of a child or another person subject to equalisation may also be relevant, where, by their nature and amount, they constitute an actual financial benefit.<\/p>\n\n This does not mean, however, that all expenses incurred by a parent on behalf of a child must be taken into account at the time of inheritance. The Civil Code expressly excludes from the calculation of the estate\u2019s value the normal costs of maintenance and education, those incurred due to illness, and ordinary expenses for clothing and weddings.<\/p>\n\n For certain expenses, such as those incurred for a trousseau or for artistic or vocational training, the assessment may, however, depend on their amount: they are considered significant when they considerably exceed the usual amount, taking into account the financial circumstances of the deceased.<\/p>\n\n The criterion to be considered is therefore the specific nature of the payment. Paying for a child\u2019s normal living, education or healthcare expenses is different from making a particularly large payment that provides the child with an additional financial benefit. For this reason, particularly in less clear-cut cases, it is necessary to assess the amount, purpose and circumstances of the expenditure. The research material also emphasises that the distinction can become less clear-cut when financial support significantly exceeds normal maintenance.<\/p>\n\n The Civil Code also provides for a specific exemption for spouses in respect of gifts of modest value, the modest nature of which must also be assessed in relation to the donor\u2019s financial circumstances.<\/p>\n\n The term \u2018conferire\u2019 does not necessarily mean physically handing over to the other heirs what has been received.<\/p>\n\n The procedure varies depending on the nature of the asset.<\/p>\n\n Under the principle of collation in kind, the asset previously gifted is reintegrated into the estate and once again forms part of the estate for the purposes of its division.<\/p>\n\n In the case of immovable property, the Civil Code grants the co-heir who is the donee the option to choose a contribution in kind in the cases provided for by law.<\/p>\n\n In the case of collation by imputation, however, the asset remains with the donee, but its value is included in the share of the estate to which they are entitled.<\/p>\n\n Put simply, anyone who has already received a share of the estate through a gift will receive a smaller share of the remaining assets in the inheritance.<\/p>\n\n In the case of movable property, the collation is carried out by allocation, and the value specified in the Civil Code with reference to the opening of the succession is taken into account. The Court of Cassation has also referred to this principle.<\/p>\n\n As we have seen, sums of money, on the other hand, are subject to the specific provisions of Article 751.<\/p>\n\n A simplified example makes it easier to understand how collation by imputation works.<\/p>\n\n Consider an estate with two children and no other heirs. The estate comprises assets with a total value of 100,000 euros, whilst Child A had already received, during the testator\u2019s lifetime, an asset whose value for the purposes of collation is 40,000 euros.<\/p>\n\nWho is required to provide a collation?<\/h2><\/h2>\n\n
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Which gifts are subject to equalisation?<\/h2><\/h2>\n\n
Donation of a property<\/h3><\/h3>\n\n
Donations of money<\/h3><\/h3>\n\n
Indirect donations<\/h3><\/h3>\n\n
Which expenses are not subject to collation?<\/h2><\/h2>\n\n
How set-off takes place: in kind, by set-off or in cash<\/h2><\/h2>\n\n
Payment in kind<\/h3><\/h3>\n\n
Collation by charge<\/h3><\/h3>\n\n
A practical example of the collation of an estate<\/h2><\/h2>\n\n