Renouncing an inheritance in Switzerland

Any heir can decide not to accept an inheritance. Both the heirs appointed by the testator and the legal heirs can renounce the inheritance. Renunciation is regulated in Article 566 of the Swiss Civil Code (ZGB).

As a rule, an inheritance is renounced if it would cause the heirs to incur debt. An inheritance doesn’t always consist solely of money and valuables—debts can also be inherited. Therefore, if heirs know that the inheritance contains significant debts, they can renounce the inheritance. If an heir decides to renounce the inheritance, this applies to their entire share of the inheritance. They don’t have the option of renounce only the debts, for example, but also relinquish the rights to the assets associated with the inheritance.

Even if the heir themselves is indebted, it can still make sense to renounce the inheritance. This is the case, for example, if the deceased parents leave their home to their children. If an indebted heir accepts the inheritance, the house may have to be sold to pay off the debt. By renouncing the inheritance, the indebted person ensures that the family home falls into the hands of their next of kin and can thus be preserved.

Special case: If it is officially established at the time of the inheritance that the estate consists solely of debts, the renunciation is presumed. In this case, the heir must expressly accept the inheritance (Article 566, paragraph 2, of the Swiss Civil Code).

An heir can contest a will if they feel disadvantaged. However, the chances of success are only good if there is a legally recognised ground for contestation. In Switzerland, the Swiss Civil Code (ZGB) provides several legal grounds that can justify the invalidity of a will or its contestation by the heirs in court. In principle, any person with an interest in having the will declared invalid can sue for invalidity (Article 519 paragraph 2 ZGB).

An heir can also forfeit their right to renounce the inheritance. This is the case if they interfere with the inheritance. For example, they may assume administrative and organisational tasks after the death of the deceased, but otherwise cannot interfere with the inheritance. No valuable items may be removed from the estate, regardless of whether the person intends to keep them for themselves or give them away.

Caution with Gifts

The most common reason for renouncing an inheritance is that it entails liabilities and debts. The heirs want to avoid having to cover these debts and pay the testator’s creditors. However, if the heirs have received gifts from the testator within the last five years, they may be required to use these assets to satisfy the creditors’ claims. These gifts could specifically include gifts or advance inheritances. In general, caution is advised with all gifts that could trigger an obligation to make adjustments.

When can an inheritance be renounced – Deadlines and Dates

An inheritance must be renounced within a certain period of time. According to Article 567 of the Swiss Civil Code, this period is three months. Legal heirs are generally not explicitly informed of the inheritance. For them, the period therefore begins upon learning of the testator’s death. For appointed heirs, the three-month period only begins upon receipt of official notification of the inheritance. In exceptional cases, the authority may extend the deadline to give the heirs more time.

Public Inventory

Heirs may not only renounce an inheritance but may also request a public inventory (Article 580 of the Civil Code). This must be done within one month of learning of the inheritance. During the inventory, the assets and liabilities of the estate are valued. Creditors are asked to come forward and state the testator’s debts. This way, the heirs are informed and can decide whether to renounce or accept the inheritance. This must be done within one month of the inventory being published. A public inventory can be viewed not only by the person who requested it, but by all heirs.

In principle, the heirs have the following options:

• Renunciation of the inheritance: The entire inheritance is renounced by the person concerned.
• Official liquidation: The inheritance is liquidated by the authorities.
• Acceptance under public inventory: The debts and assets of the inheritance listed in the inventory are accepted by the heir. They are liable for the resulting liabilities with both the inheritance and their personal assets. Creditors not listed in the inventory do not have to be satisfied by the heir.
• Unconditional acceptance: The inheritance is accepted unconditionally and in full.
• If the applicant does not respond, it is assumed that they accept the inheritance based on the public inventory. It is important to note that a public inventory can sometimes be associated with high costs. These will be paid from the inheritance, if possible. If the necessary financial means are not available, you as the applicant must cover the costs.

Transfer of the Inheritance

If an heir dies before they can accept or reject the inheritance, the decision to do so passes to the next heirs. In this case, the deadlines are generally postponed. The deadline for the new heirs begins at the time they become aware of the facts (Article 569 of the Civil Code).

Official Liquidation

As part of the liquidation, a public audit takes place. An inventory of the estate’s assets and liabilities is taken. Claims are settled where possible, and ongoing transactions are terminated. The heirs are no longer liable for the estate’s debts but may receive any surplus.

A settlement can be requested by the community of heirs – but only if all heirs agree. If only one heir accepts the inheritance, a settlement is not possible. The testator’s creditors also have the option of requesting liquidation, especially if they have reason to believe that their claims will not be settled in the future. This must be done within three months of learning of the inheritance. If it turns out that the inheritance is over-indebted, the liquidation is transferred to the bankruptcy office, which then conducts the official liquidation.

If an heir decides to renounce the inheritance, the inheritance is treated as if it had never accrued. The inheritance then passes to the next heir in the legal line of succession. This heir, in turn, has the option to renounce the inheritance. A three-month renunciation period also applies to these new heirs.

If all beneficiaries of the statutory share and the legal heirs renounce the inheritance, the estate is subject to official bankruptcy liquidation. Any surplus resulting from this renunciation is paid out to the heirs, even if they renounced the inheritance (Article 573 of the Civil Code).

According to Article 570 of the Swiss Civil Code (ZGB), an inheritance can be renounced in writing or verbally. Renouncement is usually made by letter to the competent authority, usually the district court at the testator’s last place of residence. The procedure may vary depending on the place of residence and canton, and in many cantons, a fee is charged. Many authorities offer a form for renouncement of an inheritance that can be completed.

Consulting a lawyer specialising in inheritance law is not mandatory, but can help clarify the situation. Especially if you are unsure whether to renounce or accept an inheritance, it is advisable to consult a lawyer. They can provide details that can help you make your decision.