What Should I Consider When Receiving an Inheritance in Switzerland?

What should I consider before accepting an inheritance in Switzerland? What are the tax implications and considerations? What risks are involved?

Hi there,

Inheritances are not always a positive thing. Receiving an inheritance can involve a lot of administrative work (filling out tax returns on behalf of your late relative, for example). Completing a tax inventory is important because inheritance taxes will be based on this inventory. The way in which the tax inventory is determined varies between cantons. The rules of the canton in which the deceased person last resided apply to the completion of their tax inventory.

How much those inheriting money must pay in inheritance tax is also determined by cantonal law and varies between cantons. As a general rule, the more distant the relation between the testator and the inheritor, the higher the inheritance tax.

By accepting an inheritance, you agree to take debt owed by the deceased. If you are the sole heir, then you will be responsible for the sum total of the deceased person's debt. If you are one of several heirs, debt will be divided between you in accordance with Swiss inheritance rules. It may be impossible to determine all debt owed by the deceased before you are given the choice to accept or decline the inheritance, so taking on an inheritance brings with it a certain amount of risk. You are free to reject an inheritance if you so choose, in which case you forfeit both debt and assets.

Because inheritances are governed by cantonal and even by municipal law, it is important that potential heirs contact the tax authorities both in their place of residence and in the testator's place of residence in order to obtain the specific information they need.

Best regards from Moneyguru

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