Dr. J. Bollag & Cie. AG – Unter Altstadt 10 – CH-6302 Zug
T +41 41 729 08 08 – F +41 41 729 08 09 – office@bollag.ch
Dr. J. Bollag & Cie. AG – Unter Altstadt 10 – CH-6302 Zug
T +41 41 729 08 08 – F +41 41 729 08 09 – office@bollag.ch
Estate planning
Plan your legacy for the future
What is estate planning?
Estate planning refers to the process of arranging and organizing a person’s assets and property in the event of their death or incapacity. This includes various legal, financial and personal aspects to ensure that the estate is managed and distributed according to the person’s wishes. Planning the succession carefully avoids uncertainty in the future.
Estate planning helps avoid potential disputes among heirs, minimizes tax burdens, and makes the transfer of assets smooth. Without a clear estate plan, inheritance matters can become complicated and time-consuming, often causing emotional and financial stress for those left behind. An executor can help manage the estate according to the wishes set out and guide the probate process.
By arranging your estate during your lifetime, you create clarity and ensure that all relevant documents and provisions are in place to facilitate the inheritance process. Careful estate planning and the appointment of an executor are therefore crucial to ensure that assets are distributed in accordance with your wishes and legal requirements.
How does the inheritance regulation work?
Probate is a legal process that ensures that a deceased person’s estate is handled according to applicable laws and the deceased’s wishes. Here is a step-by-step explanation of how probate works:
1. Plan your estate:
The first step in estate planning begins while the person is still alive. It is important to plan the estate by creating a will or inheritance contract. This helps to clearly and unambiguously regulate the distribution of assets after death.
2. Opening of the inheritance:
When a person dies, the inheritance process begins by law. The testamentary dispositions (will or inheritance contract) must be submitted to the competent authority at the last place of residence of the testator. If there is no testamentary disposition, the estate is regulated according to the legal succession.
3. Determination of the estate:
Depending on the case, the competent authority determines the extent of the estate by carrying out an inventory of the deceased person’s assets and debts (tax inventory, inheritance inventory or public inventory). This includes bank accounts, real estate, securities and other assets. In some cases, this is done by the executor or the heirs themselves.
4. Appointment of an executor:
The court appoints an executor who is responsible for the administration and distribution of the estate. This may be an executor named by the deceased or a court-appointed administrator.
5. Settlement of debts and obligations:
The executor is responsible for settling all outstanding debts and obligations of the deceased. This includes paying bills, taxes and other financial obligations.
6. Distribution of the estate:
After all debts have been paid, the remaining estate is distributed according to the instructions in the will or the legal requirements. The executor ensures that all heirs receive their rightful share.
7. Completion of the inheritance:
Once the estate has been fully distributed and all legal and financial matters have been resolved, the probate is finalized. The executor submits a final report to the court and the court officially closes the process.
Planning the estate in good time and following the above steps can ensure that the probate process runs smoothly and that the wishes of the deceased are respected.
Rules and preparations during one's lifetime
Timely estate planning is crucial to ensure that one’s estate is settled according to personal wishes and to avoid potential disputes among heirs. Here is some important information about the legal and financial preparations that can be made:
1. Prepare a testamentary disposition (will or inheritance contract):
A will is the foundational document of estate planning. It allows you to specify exactly how your assets should be distributed after your death. A clearly worded will can help avoid misunderstandings and conflicts.
An inheritance contract is often combined with a marriage contract in order to give the surviving spouse the greatest possible benefit. There are many different types of inheritance law and professional advice is recommended to achieve an arrangement tailored to individual circumstances.
2. Advance directive and living will:
With a medical directive, you can appoint a trusted person who can act on your behalf if you are no longer able to do so yourself. A living will specifies which medical measures should be taken in the event of a serious illness or accident.
3. Inheritance tax planning:
In Switzerland, there is no uniform inheritance tax at the federal level, as this tax is levied by the cantons. The rules therefore vary considerably from canton to canton, with close relatives such as spouses and children generally being exempt from tax, while distant relatives and third parties might have to pay a progressive tax on inheritances.
Inheritance taxes can be minimized by making timely estate planning during one’s lifetime. There are various legal options, such as making gifts during one’s lifetime or setting up trusts, to reduce the tax burden for the heirs.
4. Appoint an executor:
Appoint an executor who will be responsible for managing your estate after your death. This can be a family member, a friend, or a professional estate administrator. It is important that this person is reliable and trustworthy.
5. Secure real estate and assets:
Make sure all your properties and assets are properly documented and secured. This includes updating title deeds and verifying insurance.
6. Digital estate planning:
In today’s digital world, it is also important to regulate access to online accounts and digital assets. Determine how your digital data should be managed and who should have access to it.
Planning the estate in good time and following the above steps can ensure that the probate process runs smoothly and that the wishes of the deceased are respected.
Role and selection of the executor
An executor plays a central role in estate planning and administration. In this section you will find important information about who an executor is, what their responsibilities are, and how to choose a suitable executor:
Duties of an Executor
The tasks of an executor are varied and include the following areas:
1. Determination of the estate:
The executor typically conducts a complete inventory of the deceased’s assets and debts. This includes bank accounts, real estate, securities and personal belongings.
2. Settlement of debts:
The executor is responsible for paying off all outstanding debts of the deceased, including taxes and other financial obligations.
3. Administration of the estate:
During the probate process, the executor manages the deceased’s assets. This may include managing real estate, collecting debts, and paying out alimony.
4. Distribution of the estate:
The executor ensures that the remaining estate is distributed to the heirs in accordance with the instructions in the testamentary disposition or the legal requirements.
5. Reporting:
The executor must prepare regular reports on the status of the estate and the measures taken and submit them to the competent authority and the heirs.
Selection of a suitable executor
The choice of an executor is an important decision that should be made carefully.
The careful selection and appointment of a suitable executor can help ensure that your estate is administered and distributed in your favour and that your heirs are treated smoothly and fairly.
How can we help you?
Secure your future and that of your loved ones through careful estate planning. Our experts are at your side to protect your rights and maximize your options.
Your estate planning contacts
RA MLaw Christian Blättler
Department Head Legal
Legal Counsel
christian.blaettler@bollag.ch
Dr. iur. Dr. h.c. Josef Bollag
President of the Board, Company Founder
Legal Counsel
josef.bollag@bollag.ch
Lic. iur. Urs Klingelfuss
Executive Member of the Board
Legal Counsel
urs.klingelfuss@bollag.ch
RA Dr. iur. Jacob Bollag
Executive Member of the Board
Legal Counsel
jacob.bollag@bollag.ch
MLaw, Dr. phil. Tetyana Miller
Legal Counsel
tetyana.miller@bollag.ch
About
Dr. J. Bollag & Cie. AG builds on more than 45 years of experience in advising families and entrepreneurs at home and abroad. Specializing in holistic family office mandates, the Group provides complex solutions across the business areas of family office services, tax & law, corporate services, and finance.
Working closely with its partner company, Tramondo Investment Partners AG, Dr. J. Bollag & Cie. AG provides its clients seamless access to sophisticated asset protection, wealth and asset management solutions.
Contact
Dr. J. Bollag & Cie. AG
Unter Altstadt 10
CH-6302 Zug
T +41 41 729 08 08
F +41 41 729 08 09
office@bollag.ch
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