Inheritances in Switzerland: A Guide to Who Gets What

Swiss succession laws provide clear rules which govern how inheritances must be managed. Who inherits your assets when you die depends largely on whether or not you leave a will.

Who will inherit my assets if I do not leave a will?

If you die without leaving a will, then your estate will be inherited as follows:

1. You have a spouse, but no children (or their surviving descendents) or living parents: Your spouse or registered partner inherits 100 percent of your assets.

2. You have children (or their surviving descendents) and a spouse: Your spouse or registered partner inherits 50 percent of your assets. The other 50 percent are divided equally among your children. If a child is deceased but has offspring, then their surviving descendants are entitled to their share.

3. You have children (or their surviving descendents), but no spouse: 100 percent of your assets go to your children. Assets are divided evenly between children (or their surviving descendents, if they are deceased).

4. You have a spouse and living parents, but no children (or their surviving descendents): 75 percent of your assets go to your spouse or registered partner. 25 percent are divided equally between your parents.

5. You have no spouse or children (or their descendents), but you have living parents: 100 percent of assets are divided equally between your parents.

6. You have a spouse and siblings, but no children (or their descendents) or living parents: Your spouse or registered partner inherits 75 percent of your assets, while 25 percent are divided evenly among your siblings. If one of your parents is alive, then 12.5 percent will go to that parent, and 12.5 percent to your siblings. If a deceased sibling has surviving children, then their entitlement goes to their descendents.

7. You have no spouse, children (or their descendents), or living parents, but you have siblings: 100 percent of your assets are divided equally among your siblings. If a deceased sibling has descendents, then their entitlement is divided between their descendents.

8. You have no spouse, children (or their descendents), parents, or siblings (or their descendents): 100 percent of your assets are divided up between your surviving grandparents, aunts, uncles, and cousins. If a cousin is deceased but has descendents, then their entitlement is divided between their surviving descendents.

9. You have no legal heirs, as per points 1-8: 100 percent of your assets go to your last municipality or canton of residence (depending on cantonal laws).

If you do not have any surviving legal heirs, it can be advantageous to create a will. Unless you want to donate your assets to your municipality or canton, making a will is the only way to ensure that your assets go to a person or cause which you care about.

Who will inherit my assets if I leave a will?

In Switzerland, spouses (including registered partners) and children are entitled to compulsory minimum inheritance shares. These legal minimums must be accounted for when you write a will. The compulsory shares are exactly half of the inheritance shares explained above, which apply if you do not write a will.

The order is as follows:

1. You have a spouse, but no children (or their surviving descendents) or living parents: Your spouse is entitled to 50 percent of your assets. The other 50 percent may be left to entities of your choice. 

2. You have children (or their surviving descendents) and a spouse: Your spouse is entitled to 25 percent. An additional 25 percent must be divided equally between your children. The remaining 50 percent are yours to leave to whomever you wish.

3. You have children (or their surviving descendents), but no spouse: Your children are entitled to 50 percent of your assets, which must be divided equally between them. The remaining 50 percent can be distributed as you choose.

4. You have a spouse and living parents, but no children (or their surviving descendents): Your spouse is entitled to 37.5 percent, and you can freely decide over the remaining 62.5 percent.

5. You do not have children (or their surviving descendents) or a spouse: You have full command over what happens to 100 percent of your assets after you die.

The free portion of your assets which does not fall under compulsory inheritance shares can be left to any people (or other entities) of your choice. These must be specified in your will.

Important: While compulsory inheritance shares generally apply, it is possible for them to be waived under exceptional circumstances.

Are minimum inheritance shares unavoidable?

Not entirely. It is possible to customize inheritances by using contracts of succession. These are contracts between you and your heirs, and they must be legally authenticated in order to be valid. In a contract of succession, a legal heir can renounce their right to all or part of their share of your assets. Heirs can also jointly agree to divide assets unequally.

For example, your spouse may agree to relinquish their share of the inheritance in favor of leaving the entire sum to the children. Or one of your children who is financially well-off may renounce their legal inheritance claim so that you can leave all your assets to a sibling who is struggling financially. 

It is important to consider, however, that if you give up your rights to an inheritance, the relinquishment may hold true for your children and their descendants as well. Once a contract of succession has been authenticated, it can only be changed with the consent of all affected parties. Make sure to consider all future implications and consult a lawyer regarding the wording of any contract of succession.

Creating a marital agreement can, in some cases, enable you to leave more of your assets to your spouse, and less to other heirs. By labeling a larger share of your assets as jointly-owned by you and your spouse, you reduce the personal assets available to other legal heirs. Here too, it is beneficial to consult a lawyer when creating a marital agreement, as this can have other implications (in the event of a future divorce, for example).

Is it possible to disinherit an heir?

Yes. As per the Swiss civil code, an heir can lose their entitlement to a compulsory share of your inheritance by committing a grave crime against you, or by severely neglecting their duties as required by family law. The compulsory inheritance shares of your children can also be reduced by half if a child has loss certificates (generally due to personal bankruptcy). In all of these cases, disinheriting is only possible if you make a will in which you clearly state the reasons for disinheriting your heir. The affected heirs have the right to dispute the disinheritance.

How does divorce impact inheritances?

When you divorce or legally separate, you forfeit all rights to your spousal compulsory share of an inheritance, because all joint assets are divided at the time of separation. A divorce also voids a marital agreement or contract of succession between spouses, unless the agreement makes special provisions for the consequences of divorce.

Vested benefits are an exception to this rule, as a former spouse may be entitled to inherit these under certain conditions.

Is a partner who is not my spouse entitled to an inheritance?

A girlfriend, boyfriend, or other non-registered partner does not have a claim to a compulsory inheritance share. If you want to leave them an inheritance, you have to specify this in a will. You can only leave them an inheritance from the portion of your assets which exceeds compulsory inheritance shares.

Can I leave assets to people or organizations that are not my legal heirs?

Yes, but only the portion of your assets which does not make up compulsory inheritance shares. You can leave this free portion to any individuals or entities you choose by naming them as beneficiaries for these assets in your will.

Who inherits my Swiss pillar 3a savings?

Pillar 3a retirement savings are subject to special succession rules because their function is to provide for you and your dependents. Unlike regular savings, pillar 3a assets (in pillar 3a savings accounts or retirement funds, for example) cannot be inherited by anyone who is not your legal heir.

The default order in which pillar 3a savings are inherited is as follows:

1. You have a spouse (or registered partner): All of your pillar 3a savings go to your spouse or registered partner.

2. You have children, but no spouse: Your pillar 3a savings are divided between your children.

3. You do not have a spouse or children: Your parents will inherit your pillar 3a savings.

4. You do not have a spouse, children, or parents: Your siblings will inherit your pillar 3a savings.

5. You do not have a spouse, children, parents, or siblings: Your pillar 3a savings will go to your remaining legal heirs.

It is possible to change the order of inheritance for your pillar 3a savings in certain cases. To do this, you have to specifically instruct your retirement foundation to make the changes. If you do not, then the default order applies. 

These are the cases in which you can change the default inheritance order for pillar 3a retirement savings:

1. You are not married and you have a partner who is not your spouse or registered partner: If your partner has lived with you for the five consecutive years leading up to your death, was substantially dependent on you for support before your death, or has at least one dependent child with you, then they are eligible to inherit your pillar 3a savings along with your children (if you have children). 

2. You do not have a spouse or children: You can choose whether your parents, siblings, or other legal heirs should inherit, and how your pillar 3a savings should be divided between these.

Pillar 3a savings are not included in your estate. They will always be inherited separately in the order shown above. However, they do count towards your total assets for the purpose of calculating compulsory inheritance shares.

Who inherits my Swiss pension fund benefits?

Swiss occupational pension funds are not legally obligated to pay out your pillar 2 benefits to your legal heirs. However, your eligible dependents can claim survivors’ pensions based on your pension fund benefits.

Some pension funds voluntarily include clauses in their terms and conditions which provide for a lump-sum payment to certain legal heirs. Rules governing who is eligible to inherit this money vary between pension funds, but typically resemble the rules for pillar 3a savings.

Who inherits my vested benefits?

If your accumulated occupational pension benefits are vested at the time of your death (in a vested benefits savings account or retirement fund, for example), then clear rules apply to inheriting. As with pillar 3a savings, only legal heirs can inherit vested benefits.

The default order in which vested benefits are inherited is as follows:

1. You have a spouse (or registered partner): Your spouse inherits your vested benefits if you have at least one dependent child. Alternatively, your spouse can also inherit if you have been married for at least five years, and they are aged forty-five or older at the time of your death. If you also have eligible children (see point 2), then your vested benefits are divided between your spouse and eligible children. Important:  If you are divorced, your former spouse may have a claim to your vested benefits if certain conditions are met.

2. You have children:  If you have children who are minors, or are below the age of 25 and are completing their education, they are entitled to inherit vested benefits. If you also have an eligible spouse, then your vested benefits are divided between your spouse and children.

3. You do not have a spouse or dependent children, but you have a non-spouse partner or dependent person: Your non-spouse partner can inherit your vested benefits if you lived together for the five years leading up to your death. Alternatively, they are also eligible if you have one or more dependent children together. A person who is substantially dependent on you for support is also eligible.

4. You do not have a spouse, dependent children, or a non-spouse partner: Your non-dependent children, your siblings, and your parents are next in line.

5. You do not have a spouse, dependent children, a non-spouse partner, non-dependent children, siblings, or parents: Your vested benefits will go to your remaining legal heirs.

You can further specify who should inherit, and how much. You can also add a non-spouse partner or dependent person to the first group (spouse and/or dependent children). In order to do this, you must consult your vested benefits foundation and instruct them accordingly.

Can I make gifts while I am still alive in order to avoid inheritance rules?

You have every right to give your assets to anyone you choose to while you are still alive. However, gifts which you make during the last five years of your life generally count towards your estate. If you do not leave a will, gifts made during that time frame have to account for your legal heirs. If you leave a will, then gifts have to account for compulsory inheritance shares.

Gifts to people (or other entities) who are not your legal heirs are also limited, when these are made within the last five years of your life. This is the case when you leave assets to a non-spouse partner, for example. 

If you do not leave a will, then your legal heirs can demand repayment of gifts made to non-heirs during the five years leading up to your death. If you leave a will, gifts to third parties are limited to the free portion of your assets which does not make up compulsory inheritance shares. Your legal heirs can legally demand repayment of the part which exceeds your free portion from the person or entity which you gifted it to.

If you want to ensure that gifts made in the last five years of your life will not be reclaimed by your legal heirs, you should create a will and allot assets from the free portion of your estate to cover these gifts.

If you want to decide how your assets will be distributed when you die, then you should consider writing a will. This is true even if you do not expect to die in the near future. Having a fair and clearly-written will can help to prevent strife between your heirs and other beneficiaries.

Because of mandatory inheritance shares and other legal limitations, it can be worth getting assistance in writing your will from a lawyer who specializes in estate planning. This is particularly true if you have a large estate, or if your family situation is complicated.

More on this topic:
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How to use Swiss retirement savings to buy a home
A financial guide to marriage
A financial guide to divorce