Reminder: The new inheritance law
January 1, 2023 marked the entry into force of Switzerland’s revised inheritance law, a major change for married couples, cohabitants, and entrepreneurs to consider.
Key changes:
Descendants are now entitled to 50% of their hereditary share, compared with 75% previously.
Parents’ reserve share has been abolished, whereas previously it represented 50% of their legal inheritance share.
Pillar 3a assets no longer form part of the estate.
The conclusion of an inheritance agreement entails a ban on gifts.
Married couples in divorce proceedings can exclude themselves from the estate even before the divorce decree is in force.
What remains unchanged?
The legal order of inheritance remains the same.
Legal inheritance shares are maintained for different family situations.
The revision offers greater freedom of inheritance. You can designate new beneficiaries and leave only the reserved portion to the heirs entitled to it.
The provisions relating to hereditary reserves have been modified, offering greater flexibility for testators.
Married couples and families:
For married couples, this reform provides better mutual protection, particularly in the event of dependence on income from the estate or repayment of mortgages to keep the house. Blended families can also benefit from the increase in the available share, favoring both their children and stepchildren.
Cohabitation:
However, cohabitation is not covered by inheritance law, and without specific provisions, cohabitants and their children cannot claim inheritance. Testators retain the power to decide the beneficiaries of their succession, and this reform widens their room for manoeuvre by reducing the share reserved for descendants and eliminating that for parents.
Entrepreneurs:
Entrepreneurs also benefit from this revision, as the reduction in hereditary reserves simplifies intra-family business transfers, enabling business owners to favor their descendants to a greater extent.
To sum up:
It’s essential to plan your succession before it’s too late, especially when a child arrives, a business is set up or you retire. Stepfamilies and cohabitants also need to take steps to avoid unfair situations when it comes to sharing an inheritance.
Even if wills and inheritance agreements drawn up before January 1, 2023 remain valid, it is advisable to re-examine them in the light of this reform. Certain formulations could pose problems under the new law, affecting the distribution of the inheritance.
If you have any questions about estate planning or adjustments to be made as a result of this reform, please do not hesitate to contact us.