This sophisticated mechanism allows the donor, or usufruct holder, to maintain a lifetime connection with the asset, enjoying its use and deriving income from it. This holds true even when the asset in question involves shareholdings, providing a unique advantage by enabling the retention of voting rights. The calculation of gift tax becomes a focal point, as it is levied exclusively on the value of bare ownership.

The calculation itself follows a structured approach defined by tax legislation, taking into account percentages determined by the usufruct holder's age. This meticulous evaluation ensures a fair and tailored assessment of the asset's value, considering the longevity of the usufruct arrangement. The beauty of this strategy lies in its ability to transcend traditional boundaries, offering flexibility in financial planning and a thoughtful consideration of familial legacies.

Upon the eventual passing of the usufruct holder, a pivotal transition occurs – the usufruct is extinguished, and the bare owner seamlessly assumes full ownership of the assets. It's important to note that this consolidation doesn't trigger inheritance tax under Italian civil law, as it doesn't qualify as a mortis causa transfer.

In essence, the gift of bare ownership with usufruct reservation emerges as an artful maneuver in wealth transfer planning. It delicately balances the present enjoyment of the donor with a strategic design that preserves family wealth and navigates the intricate contours of Italian tax regulations. This thoughtful integration of legal nuances and financial foresight forms the essence of a holistic approach to wealth management.

At Move To Dolce Vita, we go beyond conventional wealth management. Our dedicated team assists wealthy individuals, families, and entrepreneurs in navigating the complexities of Italian tax and legal frameworks. With a commitment to excellence, we tailor our services to meet your unique wealth planning needs, ensuring a seamless transition of assets and a lasting legacy for generations to come.

Make Move To Dolce Vita be your Italian wealth planner.