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On 1 January 2023 the revision of the Swiss inheritance law went into effect. For the first time in 100 years, there have been significant changes in living together that are not surprising given the social developments of the past decades: Divorces are the order of the day, disorganized families are not uncommon, and cohabitation is an alternative. to traditional marriage
What will apply from the beginning of this year – and what you need to regulate and observe in general.
Who has the right to inherit in Switzerland?
With the new law, the surviving spouse, surviving registered partner and descendants come first. The latter includes children, grandchildren and great-grandchildren, great-grandchildren and great-grandchildren. The de facto partner does not have the right to inherit. Despite the corresponding proposals, the inheritance law has not been changed in this regard.
If the deceased has no spouse, registered partner, or problems, his parents or their children inherit, such as the deceased’s sister. If there are no parents or their children, then the grandfather or their children inherit. If the deceased has no descendants, the inheritance passes to the canton of the deceased’s last residence. Or to the municipality authorized in accordance with the legislation of the relevant canton.
Therefore, unless otherwise stated, children and spouses each receive half of the inheritance. This is legal inheritance. «If I know and accept the legal regulations, I don’t need a will or inheritance contract. At the request of Cash.ch, a single mother with two children is aware that her two children will inherit half of the entire property and wants it to be so,” says attorney Roberto Fornito of the Bratschi law firm, at the request of Cash.ch.
What does the situation look like in living together?
Although cohabitation is common in Switzerland, the revision of the inheritance law, as noted above, did not change the position of cohabiting partners. They still do not have legal inheritance rights. Therefore, the beneficiaries of cohabiting partners must continue to be regulated in a will or contract.
Anyone who does not marry for tax reasons – also to receive double the individual pension from the AHV – should also be aware that high inheritance taxes can be charged if unmarried couples choose each other. st. The tax rate in the canton of Gallen is 30 percent. Some cantons, such as Zurich or Basel-Stadt, have preferential tax rates or higher tax deductions for cohabiting couples, and inheritance tax is generally not payable in Canton Schwyz.
What changes in the legal mandatory parts?
“With the revision that came into effect on January 1, 2023, there have been many changes. I think the most important thing is to abolish the mandatory share of parents and cut the mandatory share of children from three quarters to half,” says lawyer Fornito. If a spouse or registered partner is still alive, they and the children are entitled to at least a quarter of the inheritance.
This increases the freedom of savings for people with grandchildren to half the inheritance – one-quarter (unmarried people with grandchildren) or three-eighths (married people with grandchildren). In addition, in the case of married persons without descendants, you no longer need to enter into a waiver agreement with the parents if you wish to appoint the surviving spouse as sole heir. Mandatory parenting is no longer valid.
But be careful: “Married and childless people often believe that the surviving spouse inherits everything by law. This is not automatically so. If the surviving spouse inherits the deceased spouse’s parental lineage, the inheritance share becomes three-quarters, Fornito told cash.ch. Since the revision, compulsory shares no longer exist for parents, but nothing has changed in the legal inheritance.
How does the new inheritance law regulate donations?
Compared to the past, the principle of prohibition of donation is now also applied in inheritance contracts and inheritance arrangements. This means that, with the exception of occasional gifts, such as a piece for a birthday or a coupon for a wedding, donations are usually contestable after the conclusion of an inheritance agreement. If the inheritance contract expressly allows such donations, this can be prevented.
Therefore, you should make corrections and additions to the inheritance agreement to avoid conflicts: It should be clearly stated whether and to what extent gifts are possible. Another complication is that all parties must agree to the changes. And if a contracting party is already dead, it can no longer be replaced.
There are also common pitfalls in which donations are hidden: “Many believe that if received in advance, the value of the gift at the time of delivery is decisive. However, the value of the gift on the day of death is taken into account. In the case of a plot, for example, this may mean that many more decades after the takeover, much more must be dealt with than originally assumed,” Fornito warns. If mandatory share rights are to be respected, this can only be eliminated to a limited extent by an equalization order or agreement.
How is the usufruct right regulated?
The usufruct often plays an important role in inheritance law, because it gives the testator the ability to grant a person the right to use an asset without having to transfer ownership of the asset to that person. Half of the estate can now be allocated to the spouse or registered partner as property, and the other half to the usufruct – up to the beginning of January this was one-quarter and three-quarters.
However, if the surviving spouse or registered partner remarries, the children do not have the right of usufruct from the inheritance share. If the new spouses are desired to be favored more, if half of the inheritance is given to him as property and half as usufruct, this request should be stated in the will as clearly and precisely as possible.
What Happens If You Die During a Divorce?
Spouses or registered partners now lose their right to the mandatory part during the divorce proceedings. Until the end of 2022 this was only the case after the decision. In addition, during the divorce case, the spouse’s interests in the will or inheritance contract are automatically invalidated. Postponing a divorce until the person concerned dies is no longer financially beneficial. However, there is a possibility: The spouse who is in the process of divorce can now completely inherit with a simple will. Thus, the legal part of the inheritance can also be removed.
What about wills written before 2023?
The new inheritance law also applies to wills written before January 1, 2023 – if the death did not occur before the law’s revision date. So, for example, if donations are made or mandatory parts are mentioned, the new regulation will be applied automatically. Therefore, you should check whether the will complies with the new regulations or if you want to complete it or make a new arrangement. As before, both must be entirely handwritten and the will must be dated and signed. You can also cancel all previous wills in an amended or new will. Inheritance contracts are also amended at the notary public. However, this is only possible if all contracting parties agree.
How are stocks and bonds inherited?
A private capital gain is not taxable if stocks or bonds are inherited and then sold. However, if stocks of US companies, US currency, or US bonds are inherited, US declarations and tax liabilities should also be checked. “Transfers of shares or other securities from the deceased person’s warehouse to an heir’s warehouse can result in high bank fees,” says Fornito of the Bratschi law firm. Sometimes the acquiring institution bears the costs for the acquirer. However, it is often cheaper to liquidate the warehouse and purchase securities from the distributed proceeds. Moreover, until the transfer or division of the estate, the interests – that is, the dividends – and the risk belong to the heirs community. As there are often different interests and risk profiles, allocation should be made as quickly as possible, according to Fornito.
What will happen to the pension fund and column 3a?
Most of the wealth is now transferred through the second and third pillars. These private assets, including life insurance policies, comply with other laws and regulations, not inheritance rules. Therefore, you can reject an inheritance and still retain any of your retirement benefits.
Source :Blick
I’m Tim David and I work as an author for 24 Instant News, covering the Market section. With a Bachelor’s Degree in Journalism, my mission is to provide accurate, timely and insightful news coverage that helps our readers stay informed about the latest trends in the market. My writing style is focused on making complex economic topics easy to understand for everyone.
