Statutory Entitlement & Inheritance Law

With the 2023 inheritance law reform, statutory entitlements were newly regulated. Here are the current figures:

Entitled heirs and their shares: - Descendants (children, grandchildren): 50% of the statutory inheritance share (previously 75%) - Spouse/registered partner: 50% of the statutory inheritance share (unchanged) - Parents: no longer have a statutory entitlement (previously 50%)

Example calculation for a married testator with two children: Statutory inheritance shares: spouse 50%, each child 25% Statutory entitlements: spouse 25% (50% of 50%), each child 12.5% (50% of 25%) Freely disposable share: 50% (100% minus all statutory entitlements)

Previously (before 2023): Statutory entitlements: spouse 25%, each child 18.75% (75% of 25%) Freely disposable share: 37.5%

You now have significantly more room to distribute your assets according to your wishes!

The freely disposable share is the portion of your assets over which you can freely dispose – without regard to statutory entitlements. The 2023 inheritance law reform significantly enlarged it:

What you can do with the freely disposable share: - Provide for non-relatives (friends, godchildren, life partners) - Support charitable organizations or foundations - Favor one entitled heir more than another - Attach conditions or requirements to gifts

Typical constellations and freely disposable share: 1. Married, with children: 50% freely disposable 2. Married, childless: 50% freely disposable (parents no longer have a statutory entitlement!) 3. Unmarried, with children: 50% freely disposable 4. Unmarried, childless: 100% freely disposable (no entitled heirs)

Especially interesting: since 2023, childless married couples can name each other as sole heirs, since parents no longer have a statutory entitlement.

Complete disinheritance of an entitled heir is only possible in exceptional cases. The law names two grounds (Art. 477 Swiss Civil Code):

Disinheritance for a criminal offense: When the heir has committed a serious crime against the testator or a person close to them. Examples: bodily harm, attempted murder, serious financial crimes.

Preventive disinheritance: When the heir has seriously violated their family-law obligations. Example: children who refuse all contact and fail to fulfill their duty of support toward their parents.

Important: the disinheritance must be expressly ordered and justified in the will. The disinherited person can contest the grounds. In case of doubt, the court decides.

Alternative: instead of disinheritance, the statutory entitlement can be reduced to the minimum. This is easier to enforce and leads to practically the same result (the disinherited person receives only their statutory entitlement, nothing more).

Instead of making unilateral arrangements, entitled heirs can voluntarily waive their share. This happens through an inheritance renunciation agreement or as part of an inheritance contract.

Renunciation of inheritance: An heir contractually renounces their future inheritance share (in whole or in part). The renunciation can be made in exchange for compensation or free of charge. It must be publicly notarized.

Typical situations: - Advance with renunciation: a child receives a large gift during your lifetime (e.g. a condominium) and in return renounces further inheritance claims - Renunciation for business succession: children who don't join the family business renounce in favor of the child taking it over - Renunciation by childless siblings: siblings have no statutory entitlement but can still renounce to create clarity

Advantages of renouncing inheritance: - Planning certainty for everyone involved - Avoidance of disputes after the inheritance occurs - Possibility of agreeing on considerations

If a will or inheritance contract violates the statutory entitlement, the affected heirs cannot simply demand more – they must file an abatement claim.

How does an abatement claim work? 1. The disadvantaged heir determines that their statutory entitlement has been violated 2. They file a claim within the limitation period (1 year from becoming aware, max. 10 years) 3. The court examines whether a violation of the statutory entitlement exists 4. If successful, the excessive gifts are reduced until the statutory entitlement is covered

What gets reduced? 1. First: provisions in the will (legacies, appointments of heirs) 2. Then: lifetime gifts (in reverse order, most recent first) 3. Life insurance can also be affected depending on the circumstances

In practice: many abatement claims are settled out of court through compromise. Nevertheless, they are burdensome and expensive. Better: respect the statutory entitlement from the start!