Succession planning in Switzerland: the fundamentals

Succession planning in Switzerland is governed by a relatively stable federal civil law that underwent a significant reform entering into force on 1 January 2023. This reform reduced statutory shares, giving testators greater freedom of disposition. Understanding these rules is essential for any serious wealth planning.

The 2023 reform: what changed

The revision of Swiss succession law (in force from 1 January 2023) modified two essential aspects:

The descendants' statutory share was reduced from 3/4 to 1/2 of the legal share. Concretely, if you have two children and an estate of CHF 1 million, the total statutory share of your children was previously CHF 750,000; it is now CHF 500,000. You may freely dispose of an additional CHF 500,000 by will or succession agreement.

The parents' statutory share was abolished. Before 2023, the deceased's parents had a statutory share in certain configurations. This is no longer the case.

The spouse's statutory share (1/2 of their legal share) is unchanged.

These modifications give families increased flexibility to organise the transfer of their assets according to their actual wishes.

Planning instruments

The will

A unilateral and revocable document by which the testator expresses their final wishes. In Switzerland, it may be handwritten (holographic will — entirely handwritten, dated and signed) or executed before a notary (authenticated will). A will cannot infringe upon the statutory legal shares.

The succession agreement

Unlike a will, a succession agreement is a bilateral agreement, requiring the consent of all parties concerned and which cannot be revoked unilaterally. It is particularly useful for complex arrangements: advance exclusion of an heir with their consent, organisation of a business succession, contractual appointment of an heir. A succession agreement must be signed before a notary.

Inter vivos gifts

Gifts made during the donor's lifetime can anticipate the transfer of assets. In Switzerland, most cantons do not apply a gift tax between parents and children, but cantonal practices vary — prior verification is essential. Gifts made within the 5 years preceding death may be brought back into the estate.

The executor

The executor is the person appointed to implement the provisions of the will. Their mission is to inventory the assets, pay the debts and carry out the distribution according to the deceased's wishes. This may be a professional (lawyer, notary, family office) or a trusted family member. Appointing an executor is strongly recommended for complex estates.

The usufruct option for the surviving spouse

Article 473 of the Civil Code allows a testator to grant the surviving spouse a usufruct over the entire share passing to their common children. The spouse retains the enjoyment of the whole estate — investment income, use of the family home — while the children receive only bare ownership until the second death. This solution protects the surviving spouse's standard of living without setting the descendants aside, but it presupposes common children: in blended families, a usufruct cannot be imposed in the same way on children from a previous union, and planning calls for more nuanced arrangements.

Succession taxation in Switzerland

Switzerland does not have a federal inheritance tax. However, most cantons levy a cantonal inheritance tax whose rules vary considerably:

• Between spouses: exempt in all cantons.
• Between direct relatives (parents-children): exempt in the vast majority of cantons.
• Between other heirs: rates and allowances vary significantly by canton.

For successions involving heirs residing in multiple cantons or countries, the question of the competent canton and applicable tax conventions is complex and merits specific analysis.

Coordinating the matrimonial property regime and the estate

Before any estate is divided, the matrimonial property regime must be liquidated: this step determines what belongs to the surviving spouse in their own right and what actually enters the estate. Under the ordinary regime of participation in acquired property, a marital agreement can allocate the entire surplus of the union to the surviving spouse — sometimes a more powerful lever than the will itself. The matrimonial regime and testamentary dispositions must therefore be designed together; otherwise the actual outcome may diverge markedly from the intentions expressed.

Pitfalls to avoid

Late or incomplete succession planning generates prejudicial situations:

• Absence of a will: the succession is governed by statutory rules, which may not correspond to the deceased's wishes.
• Breach of statutory shares: a will that infringes upon statutory shares may be challenged and annulled.
• Overlooking international assets: private international law rules (Hague Convention on Succession) apply to foreign assets — coordination is often required.
• Illiquidity: an estate composed primarily of illiquid assets (real estate, unlisted holdings) can create difficulties in distributing between heirs.

To structure your succession planning coherently with your overall wealth strategy, Ridger invites you to a confidential conversation with our team.

References

• Fedlex – Swiss Civil Code, Succession
• Federal Office of Justice – Succession law
• Swiss Tax Conference
• KPMG – Private Wealth Switzerland