There are a number of ways you can transfer your home. We will give you helpful tips on real estate transfer and show you the possible costs.
What does transferring your home mean?
What are the options?
"Transfer" refers to the gifting or sale of your own home. This is a way of transferring real estate to the heirs during your lifetime.
Homeowners often want to protect themselves against possible high care costs by transferring their property. This means they can avoid having to sell their property to cover these costs. Another reason may be that the assets are preserved when the property is transferred.
There are the following options for transferring your home to your descendants or other persons:
- Full gift or advancement of inheritance
- Mixed gift or sale below market value
- Sale at market value
Full gift or advancement of inheritance: With this option, the value of the property transferred to the beneficiary is included in the division of the estate. In some circumstances, compensation may have to be paid to the co-heirs.
Alternatively, the gift can also be indicated as a "gift not subject to compensation" – in which case the compensation payment will no longer apply.
Mixed gift: Under this option, the property is sold to the beneficiaries at below the market value. This avoids gift tax. Compensation will also take place at the time of division of the estate that takes into account the difference between the purchase price and the market value and the appreciation in value of the property.
Please note:
If you gift your home, you are not obliged to move out of the property. Our advisors would be happy to explain your options regarding your residence and usufruct rights.
Make an appointment for a consultation
Our experts at Swiss Life and Swiss Life Select would be happy to advise you at a location of your choice or online.
Sale at market value: With this option, you sell your property at market value and get the best possible price.
What costs will I incur if I gift my home?
Our tips will help you avoid high costs
There are a number of important things to bear in mind when making a gift or advancement of inheritance:
- When gifting your home, make sure you do it within the specified ten-year period or in the ten years prior to the event of inheritance. The decisive factor here is the transfer of ownership in the land register. The full value of the gift applies in the year of death. However, it then decreases by 10% annually, which means that taxes will cease after ten years.
- The gift tax must be paid by the beneficiary on the basis of the value of the home, which is counted as an asset. Please note that the legislation may vary from canton to canton.
- If you rent or sell your home at a low price, you will incur high taxes.
- You must have an officially certified contract drawn up for the transfer of your home. You should also consider a contract of inheritance to avoid disputes amongst the heirs.
