How can you organise your estate for the next generation?

In Switzerland, a valid will, a clear grasp of reserved shares and early tax planning help make sure your estate passes on exactly the way you intend.

If you die without a will, Swiss law decides who inherits your assets, and the result is often not what you would have chosen. An unmarried partner receives nothing, a family home can end up shared between heirs who disagree and a business can stall while everyone waits for a decision. The good news is that a few well drafted documents solve most of these problems. This article explains how Swiss inheritance law works, how much of your estate you can freely allocate, which documents you need and how pensions, property and tax fit into the picture.

Without a will, your estate is divided according to the statutory order of heirs set out in the Swiss Civil Code. Your spouse or registered partner and your descendants inherit first. If you have no descendants, your parents and their descendants (your siblings, nieces and nephews) come next, followed by grandparents and their line.

Here is how it typically plays out:

• Married with children: your spouse receives half and your children share the other half equally.
• Married without children: your spouse receives three quarters and your parents' line receives one quarter.
• Unmarried with children: your children inherit everything.
• Single without children: your parents inherit, or your siblings if your parents have died.

Two groups are left out completely by default: unmarried partners and stepchildren. Take Sophie and Marc, who have lived together for 12 years without marrying. If Marc dies without a will, his parents or siblings inherit his entire estate, including his share of the flat they bought together. Sophie has no statutory right to anything, and as an unrelated heir she could also face a high inheritance tax bill on whatever he does leave her by will.

Most people need a will, and many also benefit from a marriage contract, an inheritance contract and an advance care directive. Each document does a different job.

Will

A will sets out who receives your freely disposable portion and can name an executor to manage the estate. Swiss law recognises two main forms:

• Handwritten will: written entirely by hand, dated with day, month and year and signed by you. A typed and signed document is not valid.
• Public will: drawn up with a notary in the presence of two witnesses. It costs more but is harder to challenge and is stored safely.

You can change or revoke a will at any time. Store it where it will be found, for example with a notary or in the cantonal register where one exists.

Inheritance contract

An inheritance contract is a binding agreement between you and your future heirs, signed in front of a notary. It is useful when you want to depart from the reserved shares with everyone's consent. For example, children may agree to waive their share on the first parent's death so that the surviving parent can keep the family home. Unlike a will, it cannot be changed unilaterally.

Marriage contract

A marriage contract changes the matrimonial property regime, which determines how assets are split between spouses before the estate itself is divided. Under the default regime, called participation in acquired property, each spouse is entitled to half of the savings built up during the marriage. A marriage contract can allocate all of these savings to the surviving spouse, significantly increasing what they receive.

Advance care directive and living will

Estate planning is not only about death. An advance care directive appoints someone to manage your finances and personal affairs if you lose the capacity to do so yourself. A living will records your wishes for medical treatment. Without them, the child and adult protection authority may have to appoint a representative.

Your occupational pension (2nd pillar) and your Pillar 3a savings follow their own beneficiary rules and do not simply pass through your will. This makes them powerful planning tools, but only if you set them up correctly.

• Pension fund (2nd pillar): benefits go first to a surviving spouse, registered partner and children, according to the fund's regulations. An unmarried partner is usually only covered if you have registered them with your pension fund in writing during your lifetime. Many couples forget this step.
• Pillar 3a: the law sets a fixed order of beneficiaries, starting with your spouse or registered partner. Within certain limits, you can adjust the order and amounts, for example to include a cohabiting partner who has lived with you for at least five years. Notify your provider in writing.
• Life insurance: a beneficiary clause determines who receives the payout. Check that it still reflects your situation after a marriage, divorce or birth.

Pillar 3a has a further advantage: it builds wealth tax efficiently while you are alive. You can read more about how Pillar 3a can boost your savings and cut your taxes and about retroactive Pillar 3a contributions, which have been possible since 2026.

Switzerland has no federal inheritance tax. Inheritance and gift taxes are set by the cantons, and in some cases the communes, so the amount due depends on where the deceased lived and how closely related each heir was. In November 2025, voters clearly rejected a proposal to introduce a federal inheritance tax, so the cantonal system remains in place.

The key principles are:

• Spouses and registered partners are exempt in every canton.
• Direct descendants are exempt in almost all cantons. The exceptions are Vaud, Neuchâtel and Appenzell Innerrhoden, which tax children above an allowance. Since 2025, Vaud exempts the first CHF 1'000'000 inherited by each child.
• Schwyz and Obwalden levy no inheritance or gift tax at all.
• Unmarried partners and unrelated heirs can face rates of up to around 50% in some cantons, although several cantons apply reduced rates to long term cohabiting partners.
• Where it is due: inheritance tax is generally payable in the canton where the deceased last lived, while Swiss real estate is taxed in the canton where it is located.

Because of these differences, an unmarried couple in one canton may pay a very different amount from a similar couple a few kilometres away across a cantonal border.

Giving assets during your lifetime can help your children when they need it most, for example when buying a first home, but it has consequences for how the estate is later divided. By default, gifts to descendants are treated as an advance on their inheritance and must be taken into account when the estate is shared out, so that siblings are treated equally. You can waive this rule in writing if you want to favour one child, within the limits of the other heirs' reserved shares.

A few points to consider before making a gift:

1. Gift tax: most cantons exempt gifts to children, but some do not. Check the rules in your canton.
2. Your own security: make sure you keep enough to cover retirement, care costs and unexpected expenses.
3. Keeping the right to use: when transferring property, you can retain a usufruct or a right of residence, which means you can continue living in the home or receive the rental income while ownership passes to your children.

Take the example of a couple in their sixties who transfer their holiday chalet to their two children while keeping a lifelong usufruct. The children become owners, the parents keep using the chalet and the transfer is documented clearly, which reduces the risk of disputes later.

Property and businesses are the assets most likely to cause conflict, because they are hard to divide and often carry emotional value. Planning their transfer well in advance is the single most effective way to avoid disputes.

Property

When several heirs inherit a home together, they form a community of heirs in which every decision requires unanimous agreement. If one wants to sell and another wants to keep the property, the result can be years of deadlock. You can prevent this by stating in your will who should receive the property and how the other heirs will be compensated, or by agreeing the arrangement in an inheritance contract.

Family business

A business needs a successor who is willing and able to run it, as well as a fair arrangement for heirs who are not involved. Start by identifying the successor, valuing the company and deciding whether shares will be transferred during your lifetime or on death. Shareholder agreements, the company's articles of association and your will should all point in the same direction.

Review your estate plan every few years and after every major life event. Documents that were sensible a decade ago can produce unwanted results today.

Common triggers for a review include:

• marriage, divorce or a new relationship
• the birth or adoption of a child or grandchild
• buying or selling property
• moving to another canton or abroad
• a significant change in your wealth
• the death of a beneficiary or executor

If you have assets abroad or hold a foreign nationality, the rules become more complex. Foreign nationals living in Switzerland can, in some cases, choose in their will to have their estate governed by the law of their home country. Specialist advice is worthwhile in these situations.

The content in this article is provided for educational and marketing purposes only. It does not constitute investment advice or financial recommendations.