Donazione Facile (Easy Donation), the first insurance product designed by Stewart for the Italian market, is offered exclusively by Willis Towers Watson, and aims to make donation marketability easier. The coverage protects the buyer of a donated asset or the mortgage lender from financial loss after a favourable outcome of a property restitution claim by the donor’s legal heirs (Sections 561 and 563 of the Civil Code). It is an innovative and central product in a new attempt to address the management and distribution issues of real estate assets held by Italian families.
As it is well known, real estate subject to donation represents a major risk because of the potential for legal claims after the donation has taken place. In fact, the purchaser or mortgage lender, who has constituted a mortgage on the property, assumes the risk that the donor’s heirs, excluded in their legitimate share, could take action for the restitution of the property donated free of any future mortgages after the donation. If there is no objection, the restitution claim has a ten-year statute of limitations calculated from the time of the donor's death, or if the donor is still alive, in twenty years from the donation registration.
Donazione Facile covers risks arising from the purchase and/or the funding of donated property, and behind the payment of a one-off premium, protects the insured against the risk of the obligation to return the property and the risk of cancellation of any mortgage that may eventually be registered. Stewart agrees to directly compensate the heirs by paying the equivalent in cash, as per Section 563, paragraph 3 of the Civil Code, in order to prevent returning the property to the mortgage lender, free from any granted mortgage.
The policy can be entered into upon donation by the donor or the donee to ensure future property marketability, but also in the period following the donation by the donee, the third buyer and even the mortgage lender, so they can be protected even after loan disbursement.
Thanks to this insurance, the donation can become an extremely useful tool in estate planning.
The innovative and distinctive features of Donazione Facile include:
- Stewart directly compensates the legal heirs, already in the first instance and in any case when the decision is enforceable
- Stewart shall bear all legal costs of any legal proceedings
- If there is a risk increase due to a change in circumstances, pursuant to Section 1898 of the Civil Code (e.g. Birth of the donor’s second child) Stewart cannot cancel the policy because it expressly waived
- Coverage remains in case of mortgage securitization
- Due diligence by the contracting party’s notary, before issuing the policy (in a very short period of time) allows for a full description of the risk, thus minimizing assumptions of future exclusions, and ensures safer coverage.
For further information about the product, please visit www.donazionefacile.it