The partially revised Swiss inheritance law has been in force since January 2023. The new provisions give you greater flexibility and self-determination in deciding who will inherit your estate and in what amounts. You can now dispose of a larger portion of your estate at your own discretion. Changes include a reduction in the compulsory portions for descendants and discontinuation of the compulsory portion for parents. We provide an overview of what to keep in mind with regard to inheritance and estate planning.
Key changes at a glance
- Heirs are entitled to 50% of their statutory inheritance as a compulsory portion, down from 75% prior to 2023.
- The compulsory portion for parents, which was previously 50% of their statutory inheritance, has been discontinued.
- Pillar 3a assets are not part of the estate.
- There will be a ban on gifts when a contract of inheritance is concluded.
- Married couples engaged in divorce proceedings can exclude each other from the inheritance before the divorce decree comes into effect.
How the legal order of succession works
If the testator does not leave a will or contract of inheritance, the estate will be distributed according to the legal order of succession. The order of succession is based on kinship (including adoption), with close relatives excluding more distant ones. As long as the testator leaves behind descendants, these will exclude all other relatives. In addition, the surviving spouse or registered partner will always inherit.
The statutory inheritance portions will be as follows:
The testator leaves behind
- descendants only: 100%
- spouse (50%) and descendants (50%)
- spouse (75%) and heirs in the parental line such as parents, siblings, nephews and nieces (25%)
- spouse (100%) and the closest relatives in the grandparental line such as uncles, aunts and cousins (0%)
The spouse’s compulsory portion will remain at 50% of the statutory inheritance.
What are your options?
With a will (unilateral decision), you can limit heirs protected by a compulsory portion to the compulsory portion and (additionally) favour others.
Compulsory portions
Compulsory portion for descendants
If you are survived by a spouse and descendants, the spouse’s compulsory portion is 50% of the statutory inheritance, i.e. 25% of the entire estate. The compulsory portion for descendants also amounts to 50% of the statutory inheritance, i.e. 25% of the entire estate. Under the revised provisions for the compulsory portions, you can now determine how you dispose of 50% of your estate yourself, be this in favour of individual legal heirs (e.g. spouse) or third parties. Previously, the so-called “freely disposable portion” in this family constellation only amounted to 37.5%.
Compulsory portion for parents
As of 2023, there is no compulsory portion for parents. If you are survived by parents but no descendants, the parents may be excluded from the legal order of succession. For example, the spouse or life partner can now be designated as full beneficiary (sole heir).
How should I organise my inheritance planning?
If you would you like to learn more about this important topic or have questions, we would be pleased to provide you with more information – in a personal and non-binding consultation.
More important details on inheritance law
Pillar 3a
Assets held in a deceased person’s pillar 3a (insurance or bank solution) do not form part of the estate. The assets are paid out as a lump sum directly and outside the order of succession to the beneficiaries.
However, the benefits are taken into account in the calculation of the compulsory portion up to the amount of the surrender value (insurance solution) or lump sum paid out (bank solution). This also applies to beneficiaries under pillar 3b insurance products with a surrender option.
Caution with contracts of inheritance: ban on gifts applies
Once a contract of inheritance has been concluded, future gifts, with the exception of occasional gifts, may be contested by the contracting parties if such gift options are not expressly provided for in the contract. This also applies to inheritance contracts concluded before 2023.
Married couples going through a divorce
Since 2023, in the case of married couples who have initiated divorce proceedings, it has been possible to remove the protection of compulsory portions under certain conditions. Couples engaged in divorce proceedings can thus use a last will and testament to exclude each other from the order of succession.
Useful information about the partially revised inheritance law
The inheritance law in force since 2023 provides much greater scope for taking account of different life models – from patchwork families to cohabiting couples – in estate planning.
What to do in light of the 2023 partial revision of inheritance law
Review your existing wills or contracts of inheritance to avoid problems of interpretation. Adjustments may be necessary.
You should pay attention to the following
- If the heirs have been limited to the compulsory portion. Should this apply in accordance with the new provisions or should the existing portions continue to apply?
Examples:
- You are married and have two children together whom you have limited to the compulsory portion in favour of your spouse. The spouse would now receive 3/4 of the estate and the two children 1/8 each.
- You are widowed and have two children of your own whom you have limited to the compulsory portion in favour of your stepchild. Previously, the two children would each have received 3/8 of the estate and the stepchild 2/8. Under the new law, the two children would each receive 1/4 of the estate and the stepchild 1/2. If you do not want this to happen, your existing wills need to be adjusted.
- Do you wish to favour other/additional persons owing to the reduction in compulsory portions (descendants) and/or discontinuation of compulsory portions (parents) and the higher freely disposable portions resulting from this?
- Would you like to be able to allocate assets to third parties when concluding contracts of inheritance? If so, to whom and to what extent?
- Are divorce proceedings ongoing or foreseeable? Do you wish to exclude your current spouse as heir?
How should I organise my inheritance planning?
If you would you like to learn more about this important topic or have questions, we would be pleased to provide you with more information – in a personal and non-binding consultation.
