The revised Swiss law of succession will enter into force on January 1, 2023. The new rules apply to deaths occurring on or after January 1, 2023.
The following key changes will enter into force on January 1, 2023:
Changes to statutory entitlements
The most important change concerns the existence and calculation of the compulsory portion. The compulsory portion for direct descendants is reduced from ¾ to ½ of the statutory portion of the estate. The parents’ compulsory portion will be abolished altogether. These changes increase the freely available share of the estate and thus the testator’s flexibility in estate planning. However, the testator must specify anyone who is to inherit the freely available share of the estate in writing. The parents’ statutory entitlement to inheritance remains in place. If this is to be excluded, it must be stipulated in writing.
From January 1, 2023, it will also be possible to exclude the spouse’s claim to a compulsory portion after divorce proceedings have been initiated. However, this exclusion must be expressly stipulated in the will or agreed in the contract of inheritance.
Increase in the free quota of ownership when granting usufruct
For spouses who share children, the statutory quota that the testator can allocate to the ownership of the surviving spouse in connection with the usufruct of the remaining estate will also be increased. Up to now, it has been possible to allocate the surviving spouse one quarter of the estate and the usufruct to three quarters of the estate. One-half of the estate can now be bequeathed as an inheritance and the usufruct to the second half of the estate can also be bequeathed.
Contestation of gifts following the conclusion of a contract of inheritance
Finally, gifts made after the conclusion of a contract of inheritance can now be contested. Occasional gifts are excluded from this right of appeal. In addition, gifts remain possible and non-contestable if they are explicitly permitted under the contract of inheritance that has been concluded.
Recommendation
We recommend that you review the wording of existing wills and inheritance contracts in light of the new regulations. We will be happy to assist you with this analysis.
Stocker Tax & Legal
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