Estate Planning: Will, Inheritance Contract, Pensions

In short: If a person makes no arrangements of their own, marital property law and intestate succession determine who receives what after a death. A will and an inheritance contract depart from that, and a marriage contract changes the division of marital property. The limits are set mainly by the compulsory portions. The pension fund and Pillar 3a have their own orders of beneficiaries, but claims from Pillar 3a still count when the compulsory portions are calculated. If a person loses capacity of judgement (the ability to form a reasoned will and act on it) during their lifetime, the advance care directive (a mandate appointing someone to act for the person) and the patient decree (living will) apply. Cohabiting partners do not inherit by operation of law.

Estate planning means deciding during a person’s lifetime what happens to their assets on death and who acts for them if they lose capacity of judgement. It combines marital property law, the law of succession with will and inheritance contract, the designation of beneficiaries in occupational and tied pension provision (Pillar 3a), and the advance care directive. The legal basis is the Civil Code (CC) and pension law, in particular the Federal Act on Occupational Retirement, Survivors’ and Disability Pension Plans (BVG) and the Ordinance on Tax Deductions for Contributions to Recognised Forms of Pension Provision (BVV3).

Intestate succession, inheritance taxes and the steps after a death are explained in the guide Inheritance in Switzerland. This article describes the form, effect and limits of the individual instruments.

The key facts at a glance

• A holographic will must be written by hand from start to finish, dated with year, month and day, and signed (Art. 505 para. 1 CC).
• Descendants, the spouse and the registered partner each hold a compulsory portion (statutory entitlement, Art. 470 CC) of one half of the intestate share; since 1 January 2023 parents no longer have one (Art. 470 para. 1 and Art. 471 CC).
• An inheritance contract requires the form of a will by public deed with two witnesses and can, in principle, be revoked only by written agreement of the contracting parties (Art. 512 and Art. 513 para. 1 CC).
• In Pillar 3a the surviving spouse ranks first (Art. 2 para. 1 let. b BVV3). When the compulsory portions are calculated, the surrender value is added to the deceased’s assets for a 3a insurance policy and the beneficiaries’ claim for a bank foundation (Art. 476 para. 1 and 2 CC).
• For meeting living costs and the ordinary management of income and assets, a person who loses capacity of judgement can be represented by operation of law only by a spouse or registered partner who lives with them or regularly and personally provides support, and only where there is no advance care directive or corresponding deputyship (Art. 374 para. 1 CC). This is the statutory right to act as representative.

Which instruments are there for estate planning?

Swiss law provides for four groups: dispositions mortis causa (will and inheritance contract), the marriage contract for marital property law, the designation of beneficiaries in the pension fund and Pillar 3a and, for the case of loss of capacity of judgement, the advance care directive and the patient decree. Each group follows its own rules on form and amendment, and not every one can be changed by one party alone.

In what order is an estate distributed?

When a married person dies, the marital property regime is dissolved first (Art. 204 para. 1 CC); only then is it clear what belongs to the estate: the deceased’s individual property and their share from the division of marital property. Assets in the pension fund and in Pillar 3a have their own orders of beneficiaries. Claims from Pillar 3a nevertheless count when the compulsory portions are calculated (Art. 476 CC).

The following order applies to the estate itself:

1. A will and an inheritance contract distribute the property within the limits of the disposable portion (Art. 481 para. 1 CC).
2. What has not been disposed of passes to the statutory heirs (Art. 481 para. 2 CC).
3. If an heir with a compulsory portion receives less in value than that portion, they can request abatement until it is made up (Art. 522 para. 1 CC).

A disposition that infringes compulsory portions is therefore not invalid in itself. It remains in force for as long as no affected heir requests abatement.

How is a will validly made?

A person who is capable of judgement and has reached the age of 18 can make a will (Art. 467 CC). It is valid as a holographic disposition, written by hand from start to finish, with date and signature (Art. 505 para. 1 CC), or as a public disposition before a public official and two witnesses (Art. 499 CC).

A text written on a computer and merely signed does not satisfy the formal requirements for a holographic will. An oral disposition before two witnesses is limited to extraordinary circumstances, such as imminent risk of death (Art. 506 para. 1 CC).

As to content, a will can name heirs to the whole estate or to a fraction of it (Art. 483 para. 1 CC). It can give a person a benefit, such as an object or a sum of money, without naming that person as an heir; that is a legacy (Art. 484 para. 1 CC). And it can appoint an executor who carries out the last will (Art. 517 para. 1 CC).

The limit is set by the compulsory portions. If a widowed person leaves two children, the children inherit the entire estate by operation of law (Art. 457 CC). The children’s compulsory portion is one half of that (Art. 471 CC). The deceased can dispose freely of the other half.

A will is unilateral and can be revoked at any time (Art. 509 para. 1 CC). Anyone who wants a mutual commitment, between spouses for instance, needs an inheritance contract. For safekeeping, the cantons designate an authority (Art. 505 para. 2 CC). Anyone who finds a will, or holds it in safekeeping, must submit it to the competent authority after the death, even if it appears to be invalid (Art. 556 para. 1 CC).

How does an inheritance contract differ from a will?

An inheritance contract binds the testator towards the contracting party: the testator undertakes to leave their estate or a legacy to that party or to a third party (Art. 494 para. 1 CC). The contract requires the form of a will by public deed (Art. 512 para. 1 CC) and can, in principle, be revoked only by written agreement of the contracting parties (Art. 513 para. 1 CC). Exceptions apply where there are grounds for disinheritance, and where a party that has undertaken to provide benefits inter vivos under the contract does not perform or secure them as agreed; the party entitled to them can then withdraw from the contract (Art. 513 para. 2 and Art. 514 CC).

During their lifetime the testator remains free to dispose of their property (Art. 494 para. 2 CC). Dispositions mortis causa and inter vivos gifts that are incompatible with the contract and were not reserved in it, however, are open to challenge; customary occasional gifts are not affected (Art. 494 para. 3 CC).

Under an inheritance renunciation contract an heir can also give up their inheritance, with or without valuable consideration (Art. 495 para. 1 CC). They are then not deemed heirs on succession, and the renunciation also applies to their descendants unless the contract provides otherwise (Art. 495 para. 2 and 3 CC). An example: in an inheritance contract made during their parents’ lifetime, the joint children renounce their share on the first death and inherit only on the death of the second parent.

A testator can remove a compulsory portion by will only on grounds for disinheritance, for instance after a serious crime against the testator (Art. 477 CC). Heirs can give it up voluntarily by an inheritance renunciation contract.

How does the marital property regime affect the estate?

Without a marriage contract, spouses are subject to participation in acquired property (Art. 181 CC). Each spouse, or their heirs, is entitled to one half of the surplus of the other, and the claims are set off (Art. 215 CC). The surplus is what remains of the acquired property, including assets added back and claims for compensation, after deduction of the debts attributable to it; a deficit does not count (Art. 210 CC). Acquired property comprises what was acquired for valuable consideration during the marriage, such as earnings from work (Art. 197 CC). Inheritances and gifts remain individual property (Art. 198 CC).

An example: a husband dies leaving his wife and two joint children. He has no individual property and no debts; his acquired property amounts to CHF 800,000, his wife’s to zero.

• Under marital property law the wife receives CHF 400,000; the other CHF 400,000 forms the estate.
• By operation of law the wife inherits one half of that (Art. 462 no. 1 CC), and the children inherit the other half.
• The compulsory portions are CHF 100,000 for the wife and CHF 100,000 for the children together.
• The husband can dispose freely of CHF 200,000. If he assigns it to his wife by will, she receives CHF 700,000 in total and the children together CHF 100,000.

With a marriage contract, spouses can agree a different share of the surplus (Art. 216 para. 1 CC), including allocation of the entire surplus to the surviving spouse. The part above one half is not added to the estate when the compulsory portions of the spouse, of the joint children and of their descendants are calculated (Art. 216 para. 2 CC). In the example the entire acquired property would go to the wife, and nothing would fall into the estate. The children would then inherit only on the mother’s death. Such an agreement must not impair the compulsory portions of children who are not joint children (Art. 216 para. 3 CC).

In the event of divorce, such an agreement applies only if the marriage contract expressly provides for it. The same condition applies if one spouse dies during divorce proceedings that would lead to the loss of the surviving spouse’s compulsory portion (Art. 217 CC). The marriage contract must be made by public deed (Art. 184 CC).

What does an advance care directive govern?

With an advance care directive, a person with legal capacity (capacity to act) appoints a natural person or legal entity to take charge of the principal’s personal care or the management of the principal’s assets, or to represent the principal in legal matters, should the principal lose capacity of judgement (Art. 360 para. 1 CC). It applies for the period of loss of capacity of judgement and must be executed in holographic form or by public deed (Art. 361 para. 1 CC).

Holographic means, as with a will, written by hand from start to finish, dated and signed (Art. 361 para. 2 CC). The person must define the tasks and can give instructions; replacements can be named in case the appointee drops out (Art. 360 para. 2 and 3 CC).

On request, the Civil Register Office records that an advance care directive exists and where it is kept (Art. 361 para. 3 CC). If the adult protection authority learns that a person is no longer capable of judgement and does not know whether an advance care directive exists, it enquires there. If one exists, it verifies, among other things, whether the directive was validly executed, whether the requirements for its effectiveness are met and whether the appointee is fit for their duties (Art. 363 para. 1 and 2 CC).

Where there is no advance care directive, spouses and registered partners act as representatives by operation of law, provided they live in the same household with the person who is no longer capable of judgement or regularly and personally provide support, and no corresponding deputyship exists (Art. 374 para. 1 CC). The right covers meeting living costs, the ordinary management of income and assets and, where necessary, opening and dealing with the mail (Art. 374 para. 2 CC). For exceptional asset management the consent of the adult protection authority is required (Art. 374 para. 3 CC).

Medical measures can also be governed in a patient decree. In it a person capable of judgement specifies which measures they consent to or refuse if they are no longer capable of judgement, and can designate a trusted person (Art. 370 para. 1 and 2 CC). The person designated in the patient decree or the advance care directive takes precedence over all others in medical decisions. Next, in the order set by law, come the deputy with a right to act as representative in relation to medical procedures, the spouse or registered partner, the person who lives in the same household as the person lacking capacity of judgement and regularly and personally provides support, and others (Art. 378 para. 1 CC).

What applies to the pension fund and Pillar 3a on death?

Assets in the pension fund and in Pillar 3a are subject to their own orders of beneficiaries. In the pension fund, the surviving spouse, the registered partner and orphans have claims under the law (Art. 19, 19a and 20 BVG); under conditions set by the Federal Council, so do divorced spouses (Art. 19 para. 3 BVG). Other persons receive benefits if the regulations provide for them (Art. 20a BVG). In Pillar 3a the order in Art. 2 BVV3 applies.

Pension fund. Under the BVG, the surviving spouse is entitled to a widow’s or widower’s pension if they have to provide for the maintenance of at least one child, or are older than 45 and the marriage lasted at least five years; otherwise a lump sum equal to three annual pensions (Art. 19 para. 1 and 2 BVG). The regulations can provide for further beneficiaries (Art. 20a para. 1 BVG):

• persons whom the insured person supported to a substantial extent, the person who lived with the insured person in a continuous cohabiting relationship in the five years immediately before death, or a person who has to provide for the maintenance of children they had together with the insured person (let. a)
• if there are no such persons: children without a claim to an orphan’s pension, parents or siblings (let. b)
• if there are none of these either: the other statutory heirs, excluding the public authorities, up to the contributions paid in by the insured person or 50 percent of the retirement capital; which of the two limits applies is set by the regulations (let. c)

Whether the pension fund uses these options, and on what terms, is set out in its regulations. A beneficiary who already receives a widow’s or widower’s pension has no claim under let. a (Art. 20a para. 2 BVG).

Pillar 3a. After death this order applies (Art. 2 para. 1 let. b BVV3):

1. the surviving spouse or registered partner
2. the direct descendants and persons whom the deceased supported to a substantial extent; the person who lived with the deceased in a continuous cohabiting relationship in the five years immediately before death; or a person who has to provide for the maintenance of children they had together with the deceased
3. the parents
4. the siblings
5. the other heirs

Within the second group the saver can designate one or more beneficiaries and specify their entitlements in more detail (Art. 2 para. 2 BVV3). The saver can change the order of groups three to five (Art. 2 para. 3 BVV3). These provisions do not displace the spouse from first place. How the designation is to be made is governed by the pension foundation or the insurer.

When the compulsory portions are calculated, Pillar 3a nevertheless counts. For an insurance policy the surrender value is added to the deceased’s assets, for a bank foundation the beneficiaries’ claim (Art. 476 para. 1 and 2 CC). If the designation infringes compulsory portions, it is subject to abatement (Art. 529 para. 1 and 2 CC).

With a capital withdrawal the order of beneficiaries ends for the part withdrawn; the money then forms part of the person’s other assets. Under participation in acquired property, a lump-sum benefit from the pension fund in principle counts as acquired property (Art. 197 para. 2 no. 2 CC). What the deceased is entitled to after the division of marital property falls into the estate. What this means for the period after payout is described in the article After the Capital Withdrawal.

What applies to cohabiting partners in estate planning?

Cohabiting partners do not inherit by operation of law; the statute does not name them among the statutory heirs (Art. 457 to 462 CC). The partner receives from the estate only what a will or an inheritance contract assigns, within the limits set by the compulsory portions of other heirs. The right to act as representative for meeting living costs and managing assets under Art. 374 CC does not extend to them. For medical measures the partner can act as representative if both live in the same household and the partner regularly and personally provides support, but only after the person designated in a patient decree or advance care directive, a deputy with a right to act as representative in relation to medical procedures, and a spouse or registered partner who cohabits with the person or regularly and personally provides them with support (Art. 378 para. 1 no. 4 CC).

How much can be assigned depends on the other heirs. Anyone who leaves no descendants and no spouse or registered partner can dispose of the entire estate (Art. 470 para. 2 CC); since 1 January 2023 parents have no compulsory portion. If the deceased leaves children, one half of the estate is freely disposable. Except where there are grounds for disinheritance (Art. 477 CC), the children’s compulsory portion cannot be reduced against their will; they can request abatement (Art. 522 para. 1 CC). If they renounce in an inheritance contract, this protection lapses (Art. 495 para. 1 CC). Claims from a beneficiary designation in Pillar 3a count in this calculation (Art. 476 CC).

With an advance care directive the partner can be appointed for personal care and management of assets (Art. 360 para. 1 CC). In pension provision the partner belongs to the second group in Pillar 3a after five years of continuous cohabiting relationship until death, or where the partner has to provide for the maintenance of children they had together with the deceased (Art. 2 para. 1 let. b no. 2 BVV3), and in the pension fund only if the regulations provide for it (Art. 20a para. 1 let. a BVG).

On inheritance tax the cantons treat cohabiting partners differently. Some examples:

Source: Federal Tax Administration (FTA), tax information dossier Inheritance and Gift Taxes (German only), section 2 and table 6.2, legislation as at 1 January 2025. The rules of the other cantons are in the same overview.

Which events change an existing arrangement?

An estate plan rests on the circumstances at the time it was made. Some events change its effect without anyone touching the document.

• Marriage: A further heir with a compulsory portion joins (Art. 470 para. 1 CC), participation in acquired property applies without a marriage contract (Art. 181 CC), and in Pillar 3a the spouse moves to first place (Art. 2 para. 1 let. b BVV3).
• Divorce: Divorced spouses no longer have a statutory right of inheritance (Art. 120 para. 2 CC) and, unless the disposition provides otherwise, cannot assert claims based on dispositions mortis causa. Such claims are also excluded if one spouse dies during divorce proceedings that would lead to the loss of the surviving spouse’s compulsory portion (Art. 120 para. 3 CC). The surviving spouse’s compulsory portion already lapses during the proceedings if they were started on joint request or the spouses have lived apart for at least two years (Art. 472 para. 1 CC). More on this in the article Divorce and Finances.
• Birth or adoption of a child: Each further child reduces the inheritance shares and compulsory portions of their siblings. For the first child, the spouse’s shares also change and the deceased’s parents cease to be heirs (Art. 457, Art. 458 para. 1 and Art. 462 CC).
• Capital withdrawal from the pension fund or Pillar 3a: The money withdrawn forms part of the person’s other assets; the order of beneficiaries no longer applies to it.
• Lifetime transfers: What a child receives as an advance against their share of the estate is brought into account when the estate is divided. What descendants receive as dowry, endowment, assignment of assets or debt remission must be brought into account unless the testator has expressly provided otherwise (Art. 626 para. 2 CC). The rules are described in the article Advance on Inheritance.

Frequently asked questions about estate planning

Is a will written on a computer valid?

It does not satisfy the formal requirements for a holographic (handwritten) will. That must be written by hand from start to finish, with the year, month and day on which it is drawn up and with a signature (Art. 505 para. 1 CC). A court declares a disposition with a formal defect invalid only if it is challenged (Art. 520 para. 1 CC). Anyone who does not want to or cannot write by hand can make a will by public deed before a public official and two witnesses (Art. 499 CC).

Can a cohabiting partner inherit?

Not by operation of law: the statute does not count cohabiting partners among the statutory heirs (Art. 457 to 462 CC). They can inherit through a will or an inheritance contract, within the limits set by the compulsory portions of other heirs. Anyone who leaves no descendants and no spouse or registered partner can dispose of the entire estate; since 2023 parents no longer have a compulsory portion (Art. 470 para. 2 CC).

Who receives the Pillar 3a assets on death?

The order is set out in Art. 2 BVV3: first the surviving spouse or registered partner, then the direct descendants and, under conditions, a cohabiting partner, followed by parents, siblings and other heirs. Within the second group (direct descendants, persons the deceased substantially supported and, under conditions, a cohabiting partner) the saver can designate beneficiaries and fix their shares. When the compulsory portions are calculated, the surrender value counts in the case of an insurance policy and the beneficiaries’ claim in the case of a bank foundation (Art. 476 CC).

Who acts for a person who loses capacity of judgement if there is no advance care directive?

For meeting living costs and the ordinary management of income and assets, spouses and registered partners act as representatives if they live in the same household or regularly and personally provide support (Art. 374 CC); for exceptional asset management the consent of the adult protection authority is required. For medical measures a separate ranking applies, in which cohabiting partners also appear if they live in the same household and regularly and personally provide support (Art. 378 CC). If there is no person entitled to act, the authority establishes a deputyship under the conditions of Art. 390 CC.

Can an inheritance contract be ended again?

As a rule only jointly: the contracting parties can revoke it at any time by written agreement (Art. 513 para. 1 CC). The testator can revoke a contract naming an heir or granting a legacy unilaterally only if, after the contract was concluded, the beneficiary has behaved towards the testator in a way that constitutes grounds for disinheritance (Art. 513 para. 2 CC). If the other party has undertaken to make payments or provide other benefits during the testator’s lifetime and does not perform or secure them as agreed, the party entitled to them can withdraw from the contract (Art. 514 CC).