Your will expresses your wishes. Swiss law decides what happens first.
Most people assume their will governs everything. It governs only what remains after the law has taken its share.
The scene you have in your head is not how it works here.
You have seen it in films. The family gathers. A lawyer reads the will. The wishes of the deceased are honoured.
In Switzerland, something else happens first.
Before anyone reads your will, Swiss law applies its own rules. Certain heirs — your children, your spouse — are legally entitled to a fixed portion of your estate. This cannot be taken from them. Not by a will. Not by a carefully worded inheritance contract. Not by your wishes, however clearly expressed.
Your will governs what remains after the law has been satisfied.
For most people, that is not what they intended. And almost nobody tells them until it is too late.
Here is what Swiss law reserves. Before your wishes apply.
Since January 2023, Switzerland reformed its inheritance law — giving testators more freedom than before. It is genuinely good news. But the constraints remain real, and most people have not updated their understanding.
- Spouse's protected share CHF 250,000
- Children's protected share CHF 250,000
- Spouse's protected share CHF 375,000
- Children's protected share CHF 500,000
Illustrative figures based on current Swiss law post January 2023 reform. Actual calculations depend on individual circumstances, number of heirs, and cantonal rules. Independent legal advice is essential.
The freely disposable portion is yours to direct. The protected portions are not. A will has no power over them.
What if you have reasons?
Some families are complicated. A child who caused harm. A relationship that broke down decades ago. A stepchild you raised who has no legal standing. A partner you have lived with for twenty years who has no statutory right to anything.
Swiss law does not consider your reasons. The compulsory portion belongs to the legal heir regardless of the relationship, regardless of the history, regardless of what you would have chosen.
There are limited grounds to disinherit a legal heir entirely — serious criminal conduct against you or your family being the primary one. Outside those narrow circumstances, the law protects the heir, not the testator's wishes.
The 2023 reform helped. It reduced the children's protected share and removed the parents' protected share entirely. But the core constraint remains: a significant portion of your estate goes where the law directs, not where you direct.
Blended families (Patchwork) face the hardest version of this.
You have children from a previous relationship. Your partner has children too. You want your assets to support your children — and your partner — in the way you intended.
Swiss intestate succession divides the estate between your spouse and your biological children. Your stepchildren have no statutory right. Your partner's children have no statutory right. The law's version of your family is not your version of your family.
The 2023 reform acknowledged this — the larger freely disposable portion was partly designed for blended families. But it does not solve the structural problem. The protected portions still flow to legal heirs, not chosen ones.
A foundation allows you to define your own family governance — naming beneficiaries according to your actual relationships and intentions, not the law's categories.
A foundation does not override the law. It steps outside it.
Assets irrevocably transferred to a Liechtenstein foundation before your passing are not part of your personal estate. They do not appear in the inheritance calculation.
The compulsory portion is calculated on your personal estate — what you own at the time of death. Foundation assets are owned by the foundation. They are governed by the foundation deed — your deed — not by Swiss inheritance law.
This is not a loophole. It is a legitimate structural separation recognised under both Swiss and Liechtenstein law. The same principle used by families with institutional wealth for generations.
Within the foundation, you define the beneficiaries. You write the rules for distribution. You can include stepchildren, partners, charities, or any combination. The foundation council is obligated to follow your deed.
Your vision. Legally binding. Beyond the reach of forced heirship.
One rule you must understand.
Liechtenstein law allows heirs entitled to a compulsory portion to challenge asset transfers to a foundation made within two years of the founder's death. Transfers made more than two years before death are generally outside the challenge window.
This is significantly more protective than the equivalent Swiss rules for direct gifts — and it underlines the same principle that runs through every aspect of this structure: the earlier you act, the stronger the protection.
A foundation established years before any estate question arises — with documented governance, a clear purpose, and a genuine history — is virtually unchallengeable by forced heirs.
One established in the final months of life, with obvious intent to circumvent inheritance rights, is not.
If your estate plan has not been reviewed since 2023, it is worth a conversation.
The law changed. Most estate plans did not. A 30-minute call costs nothing.
Keep reading. Keep researching.
No obligation. No preparation needed.
Swiss forced heirship — Pflichtteilsrecht (Art. 470–473 CC)
Swiss inheritance law guarantees certain heirs a minimum share of the estate — the compulsory portion (Pflichtteil) — which cannot be reduced or eliminated by a will or inheritance contract. Since the January 2023 reform, the protected heirs are descendants and the surviving spouse or registered partner. Parents no longer have a compulsory portion.
Descendants are entitled to one half of their statutory intestate share. The surviving spouse or registered partner is entitled to one half of their statutory intestate share. The freely disposable portion — what the testator can direct as they wish — is at least half the estate where compulsory heirs exist.
The 2023 reform
The revision of Swiss inheritance law, in force since 1 January 2023, reduced the descendants' compulsory portion from three quarters to one half of their statutory share, and abolished the parents' compulsory portion entirely. The reform increased testamentary freedom, particularly benefiting blended families and testators wishing to favour a surviving partner over children. Wills written before 2023 should be reviewed — the old compulsory portions no longer apply.
Liechtenstein foundation and Swiss forced heirship
Assets irrevocably transferred to a Liechtenstein foundation are no longer part of the founder's personal estate. Under Liechtenstein's PGR (Art. 552 et seq.), the foundation owns its assets independently. These assets do not enter the Swiss inheritance calculation.
Under Liechtenstein law, heirs entitled to a compulsory portion may challenge asset transfers to a foundation made within two years of the founder's death. Transfers made outside this window, for legitimate planning purposes, are generally not challengeable on forced heirship grounds.
This two-year window is materially shorter than the equivalent challenge periods under Swiss law for direct gifts — making the Liechtenstein foundation a more protective vehicle than domestic alternatives.
No federal inheritance tax
Switzerland levies no federal inheritance tax. Cantonal inheritance taxes vary significantly — most cantons exempt direct descendants and spouses entirely. For assets held in a Liechtenstein foundation, Liechtenstein levies no gift or inheritance tax on transfers to or distributions from the foundation. The initial transfer of assets may constitute a taxable gift under Swiss cantonal rules — this should be assessed with qualified Swiss tax counsel before any transfer.
Important
This page provides general information only. Inheritance law is highly fact-specific and depends on the number and identity of heirs, the composition of the estate, and applicable cantonal rules. Independent legal advice is essential before establishing any structure or amending any will.