Inheriting in Switzerland: the 8 key steps to remember.
Managing an inheritance in Switzerland necessitates meticulous planning. To secure a smooth and worry-free succession, it's crucial to navigate a series of vital administrative tasks. Familiarity with these procedures can significantly ease the process, often undertaken during a difficult personal time. If you're an heir, Piguet Galland, a Swiss private bank, offers guidance to simplify this period of transition.
1. Collect information related to inheritance
How to get information on inheritance?
- Asset Analysis : Delve into the estate's details to gather a complete overview of inheritance-related assets and properties. Start with compiling an exhaustive list that includes real estate, bank accounts, valuables, financial investments, art, etc., noting down all pertinent details such as account numbers and asset valuations.
- Estate's Net Value : Ascertain the estate's financial obligations, like debts and loans. Reviewing these liabilities will help understand their collective effect on the estate's net worth.
- Taxation : Investigate the inheritance-related tax consequences, including estate and property transfer taxes, which may vary by canton.
- Organizational Tools for Decision-Making : With all this information in hand, arrange it systematically. Utilize spreadsheets, digital documents, or other organizational tools that suit your preference to consolidate data, aiding in clearer decision-making processes..
2. Hire a lawyer or an inheritance specialist
In complex inheritance scenarios, enlisting a lawyer or an inheritance expert is a prudent choice.
Consider a situation where you're a legal heir, yet a will unjustly excludes you. This contravenes the law, which, as of January 2023, entitles a legal heir to a compulsory portion—half of what would be legally yours. In such instances, the expertise of a lawyer or inheritance specialist is invaluable. Remember, legal heirs encompass spouses, registered partners, and children.
When selecting legal counsel or an advisor, verify their proficiency in inheritance law. Additionally, comprehensive financial guidance can be advantageous—your private bank can offer support throughout the inheritance process.
3. Gather documents
In the context of inheritance, the role of a notary is pivotal. As an intermediary chosen by the heirs, the notary plays a key role in streamlining the succession process, liaising with cantonal authorities, especially regarding taxation. Their expertise simplifies administrative tasks, providing valuable support throughout the inheritance proceedings.
Ensuring the inheritance's legitimacy requires presenting all pertinent documents. It's crucial to compile essential documents such as the will, property deeds, contracts, and legal papers to clarify asset transfers and property rights.
4. Be aware of your tax obligations in regard to inheritance in Switzerland
Excluding the cantons of Obwalden and Schwyz, inheritance taxes are levied in all other Swiss cantons. The tax rates and responsible parties differ from canton to canton, underscoring the intricacies of Switzerland's inheritance tax system, which requires an understanding of each canton's specific laws. There is no federal inheritance tax in Switzerland.
Typically, inheritance tax is the responsibility of the heirs. However, exemptions are provided to certain relations, easing the fiscal load for those closely connected to the deceased, in consideration of familial bonds and the particular details of each case.
If you are an heir who is not directly related to the deceased (such as a beneficiary named in the will), be aware that many cantons impose inheritance taxes exceeding 20%, with rates in Geneva and Vaud potentially surpassing 50%.
5. Assess assets and decide whether to accept or reject the inheritance
When facing an inheritance decision, assess the estate's assets to determine whether to accept or decline. Consider if the assets align with your objectives and financial status, especially if they come with liabilities or require complex management. Financial advisors can offer valuable insights during this evaluation.
Should you wish to avoid inheriting debts or opt out of the inheritance for personal reasons, you can formally reject it. This is done by sending a registered letter to the authority in charge at the last residence of the deceased, within a three-month window. Subsequently, if you have children, the inheritance offer passes to them, who also have three months to refuse it. Absent any willing heirs, the canton's bankruptcy office where the deceased last resided will liquidate the assets to cover any debts. Additionally, you can relinquish your inheritance rights while the benefactor is alive through an inheritance pact.
6. Manage the administrative formalities in terms of inheritance
In Switzerland, the administrative steps for an inheritance start with the notary opening the succession. The key to this process is obtaining an heir certificate, which identifies the legal beneficiaries and is crucial for estate management. This certificate enables actions such as withdrawing funds from the deceased's accounts. For cases without a will or inheritance pact, legal heirs are entitled to request this certificate. However, if a will or inheritance agreement exists, the heir certificate can only be issued after the succession has been formally opened by the appropriate authority.
7. Strategize for effective inheritance management
Considering how to manage a future inheritance is a question of utmost importance. Professional expertise in financial management is essential when handling newly acquired assets. The advisors at Piguet Galland private bank are equipped to offer support. Our extensive knowledge in asset management enables us to devise strategies that enhance your inheritance's value. We assist you in navigating complex financial matters and making decisions that best suit your circumstances, ensuring your interests are safeguarded.
8. Ensure regular monitoring of the procedure’s progress
Adhering to the inheritance process is crucial. Maintain regular communication with your lawyer, advisor, and any involved parties to ensure all proceedings align with the plan. Frequent updates enable you to address any issues promptly and make well-informed decisions throughout the process.
You are now prepared to receive an inheritance with confidence and full awareness. For inquiries related to finances and assets, reach out to an advisor at Piguet Galland private bank. You can also learn more about our Wealth Advisory and Pension Planning services.
