New rules for international matters of succession
New rules for international matters of succession
Besides modernising Switzerland’s international succession law, the revision aims to align Swiss law with developments abroad, particularly with European law (EU Succession Regulation). This should reduce the risk of conflicts of jurisdiction and thus increase legal certainty.
Which rules still apply?
The revised international law of succession will continue to be based on the principle of the last domicile of the deceased. It will also maintain the principle of unity of succession (same jurisdiction and same law for the entire worldwide estate), although exceptions are possible.
What is changing?
Jurisdiction
- Option for Swiss nationals, domiciled abroad and having subjected their estate to the law of a foreign country, to choose the exclusive jurisdiction of the country of their domicile to rule on any succession matter
- Option for foreign nationals with domicile in Switzerland to submit their estate to the exclusive jurisdiction of their country of origin to rule on any succession matter
- Option to subject property located abroad to the jurisdiction of the foreign country in question
- Option to subject only part of the estate to the foreign jurisdiction in the cases mentioned above
Applicable law
- Option for Swiss dual nationals domiciled in Switzerland to choose the law of their foreign nationality, with the caveat of observing the Swiss provision for a compulsory portion
What does this mean in concrete terms?
As the following examples show, the new rules open up additional options for estate planning in particular for individuals with assets in both Switzerland and abroad, as well as for Swiss dual nationals:
Exclusion of Swiss Jurisdiction
Foreign national with last domicile in Switzerland
A German national domiciled in Switzerland holds assets in Germany. In order to avoid conflicts in jurisdiction, he wishes to have his future estate governed by the law of his native Germany. Under the EU Succession Regulation, the German authorities shall have jurisdiction to rule on his succession as a whole. From a Swiss perspective, however, the Swiss authorities at his last domicile in Switzerland will have jurisdiction. To avoid such a conflict of jurisdiction, the German national can now choose the exclusive jurisdiction of Germany to rule on any succession matter concerning his entire or part of his estate.
Swiss national with last domicile abroad
A Swiss national living abroad wishes her future estate to be governed by the law of her place of origin (Swiss Law). Previously, the law provided that her succession matters should have Swiss jurisdiction as a result of this choice of applicable law. However, as she was last domiciled abroad, the relevant local authorities would also claim competence in numerous cases (principle of domicile). The Swiss national living abroad has now the option to avoid a conflict of jurisdiction by excluding Swiss jurisdiction and choosing the jurisdiction of the authorities at her domicile.
In both cases, the new Swiss regulation leads to the avoidance of conflicts of jurisdiction between the authorities of the various concerned countries and thus to greater legal certainty.
Option for Swiss dual nationals to choose the applicable law
An English national domiciled in Switzerland has provided in his will that his future estate should be subject to the law in England, his country of origin. There, he may set up a trust under English law. After some years living in Switzerland, the English national acquires Swiss nationality without giving up his English nationality. As a dual national he was previously subject to Swiss law of succession and it was no longer possible to apply English law of succession. Now, he can continue to choose the application of English inheritance law, with the caveat that the Swiss right to a compulsory portion must be observed. This means that even if the law in his native England does not recognise such rights to a compulsory portion, his children will be entitled to their compulsory portion in accordance with Swiss law.
Transition law
What happens if a testator has drawn up a will under the old Swiss Private International Law (before 1 January 2025) but dies after the new law enters into force? In principle, it is the law in force at the time of decease and not at the date when the will was drawn up that is decisive. The revision might therefore serve as an opportunity to review existing estate planning.
The new options provided by the revised law should be integrated into international estate planning together with aspects of succession law, the law relating to foreign nationals (e.g. Lex Koller) and tax law. Our specialists will be happy to assist you with your estate planning.