Inheritance in Switzerland: The most important questions and answers

During your lifetime, you can ensure that your inheritance is distributed according to your wishes after your death. According to the Swiss Civil Code (ZGB), this can be done by means of a will or an inheritance contract (Article 481 ZGB). When you get married, corresponding provisions can also be laid down in the marriage contract. With these legally valid documents, inheritance disputes can be avoided if necessary.

The aforementioned contracts are voluntary for Swiss citizens. You do not have to draw up a will if you do not wish to do so. You can also transfer assets to certain persons during your lifetime by means of a gift agreement or provide for a close relative in your life insurance policy. Without a will or inheritance contract, Swiss inheritance law applies.

If no executor has been appointed in the will to draw up proposals for the division of the estate or if there is no will, the division of the estate is the responsibility of the community of heirs. In principle, the heirs alone can decide when to divide the estate. There is an exception if this is required by law. This may be the case, for example, if an immediate debt repayment has to be made.

Definition of real division

Real division in accordance with Article 634 Paragraph 1 of the Swiss Civil Code is the agreement on the division of the deceased’s private assets. Understandably, these can often not be divided, but are allocated to a specific heir. The community of heirs also decides on this among themselves. If they cannot agree, the decision is made by drawing lots. It is advisable to have the value of the items estimated and then offset this against the share due.

Inheritance sharing agreement

As soon as the community of heirs agrees on the division, they can also conclude an inheritance division agreement. This secures their joint decision and can avoid later inheritance disputes. A lawyer specialising in inheritance law can support the community of heirs in drafting such an agreement in order to avoid legal pitfalls and contractual loopholes.

Duties of the authorities when dividing an estate

The authorities of the relevant canton will approach the heirs. It will document the actual tax inventory and determine the correct amount of inheritance tax. It is important to know that each heir is individually responsible for the taxation of the estate.

The value of the estate is usually determined by a notary. This person is also called the notary. The notary receives the statements either from the community of heirs themselves or from an authorised executor. The documentation lists the assets as well as the current contractual obligations and the deceased’s remaining debts.

Valuation of insurance policies and contracts

Documents such as current insurance policies, investments and pension contracts must also be taken into account when calculating the estate. This often also results in special claims against beneficiaries such as spouses or children (e.g. widow’s or orphan’s pensions).

Land and property

Due to the legally prescribed compulsory portions that certain persons receive and can also claim, land or houses sometimes have to be sold. If you, as the testator, want to ensure that this does not happen, you can make a gift to your desired heirs during your lifetime. In this case, it is advisable to conclude a gift agreement.

Who inherits how much of my estate?

Who inherits how much of your estate is primarily determined by

• the private agreement of the community of heirs
• the statutory succession of the parentel system or
• the division laid down in a will.

In the case of a will, certain persons cannot be passed over completely. This is regulated by the statutory right to a compulsory portion. According to this, certain relatives are entitled to a percentage share. How high these are depends on several factors, in particular your family constellation and the desired division of the inheritance.

Free quota

When calculating the compulsory portion, Article 470 of the Swiss Civil Code leaves a certain percentage free, the so-called free quota. You can use this to determine who should receive it during your lifetime.

Example: Your last will stipulates that your estate is to be divided between your spouse and your children. In this case, your spouse and your children will each receive a quarter of your estate. The free share is therefore half and you decide who should receive it.

What is a property settlement?

A property settlement is the process of determining the assets of a married couple following the divorce of one partner. This involves clarifying which assets belong to whom in terms of their origin. The following aspects are relevant:

Definition of separation of property

Separation of property occurs when both partners retain their assets independently of each other even after the marriage. As a result, the surviving person does not initially receive any assets from their spouse by law. Only the jointly acquired or jointly managed assets must be divided.

Definition of community of property

The term community of property is used when the spouses agree in a marriage contract that all assets belong to them jointly. The surviving spouse then receives the largest part of the estate.

Definition of community of property

If the spouses have not agreed otherwise, the participation in acquired property applies. This means that the surviving spouse receives their own property and half of the inheritance. The other half is known as the estate, the assets of which can theoretically also go to another heir.

When should I settle my estate?

Ideally as early as possible. A will or contract of inheritance is particularly advisable if you have large assets or wish to provide for people who are not legally entitled to inherit. In Switzerland, you have the right to make a will from the age of 18. If you sign your will in good health and this is witnessed, you do not need to worry about a will being declared invalid or contested, for example due to incapacity of judgement.

What should I pay particular attention to when planning my estate?

Patchwork families should bear in mind that Swiss inheritance law does not grant stepchildren any inheritance share by law. This means that they may be left empty-handed without a will. Adopted children have the same status as your own children. Unregistered cohabiting partners are also not entitled to inherit by law and should be included in a will.

Swiss inheritance law is currently being revised and modernised. The first changes have been in force since January 2023, which primarily affect the testator’s freedom of disposition by reducing the previous compulsory portions. This extension of the freedom of disposal enables the testator to favour persons of their choice more generously, which also better meets the needs of modern family constellations such as patchwork families.

When does it make sense to appoint an executor?

After your death, all rights and obligations are transferred to your community of heirs, from determining the inheritance to settling debts and dealing with the authorities and offices through to the division of your estate. If you appoint an executor, she will take on all these tasks. They will also make proposals for the division of your estate. It therefore makes sense to appoint an executor if you do not want the surviving dependants to take care of these tasks themselves, or to avoid any inheritance disputes.

When should I consult a lawyer?

Legal advice can be useful in many situations. When concluding a will or inheritance contract, they can support the testator and provide legal protection. In this way, inheritance disputes can be avoided.