Revision of the law of succession

At its meeting on 19 May 2021, the Federal Council decided that the revised inheritance law should enter into force on 1 January 2023. The main features of the current inheritance law have been in power for decades. The decision to revise the inheritance law is intended to account for new, modern forms of relationships and families. The revision aims to make inheritance law more flexible and give the testator more freedom in distributing his or her estate. In addition, the reduction of the compulsory portions is intended to facilitate the succession of family businesses. This leads to more stable transitions and can secure jobs.

The revision takes place in several parts, with the first part coming into force on 1 January 2023. One of the most critical changes in this part concerns the compulsory portion. The compulsory portion in inheritance law is the share of the estate that children, parents, and the surviving spouse are mandatorily entitled to receive, even if the testator’s last will and testament provide otherwise. The previously applicable entitlement to a compulsory portion for parents no longer applies in the revised inheritance law. Thus, the testator can refrain from leaving an inheritance to the parents in the will. However, they remain legal heirs. They inherit alongside the spouse or registered partner if the deceased dies without having had children. Thus, the surviving spouse must give a quarter of the inheritance to the parents or siblings of the deceased (if the parents are deceased). This new provision makes it possible for a testator without children to exclude his parents entirely from the inheritance in his will and control all his assets.

Another change in the first part of the revision concerns the compulsory portion for descendants. The previously applicable compulsory share for descendants of three quarters will be reduced to one-twelfth. In addition, the compulsory portion applies to half the estate in the case of a married parent and to the entire estate in the case of an unmarried parent. Thus, a descendant of a married parent is entitled to a quarter of the estate, and the descendant of an unmarried parent is entitled to half of the estate. For a parent in a registered partnership, the same regulation applies to a married parent.

With the new revision, it will be possible to decide much more freely based on a will or inheritance contracts what will happen to one’s assets after death. Thus, every testator who has descendants can dispose of at least half of his or her assets without restriction, regardless of his or her marital status. Although inheritance contracts and wills are drawn up before the revision will still be valid after the revision, it is advisable to review existing inheritance contracts and wills given the innovations.