On January 1, 2025, Switzerland will introduce a revised international inheritance law that aims to simplify the estate administration process for Swiss citizens, dual nationals, and local wealth managers.
This change will allow individuals with diverse citizenships and assets in multiple countries to choose foreign jurisdiction for their estates, bypassing Swiss inheritance laws if desired. However, Swiss compulsory portions must still be honored if Swiss authorities are involved in the estate administration.
Legal experts have expressed mixed feelings about the reform, acknowledging its benefits in enhancing Switzerland's appeal as a financial center but also highlighting potential disputes arising from the requirement to adhere to Swiss compulsory portions.
This reform will impact approximately 1.8 million individuals, including one million dual nationals living in Switzerland and over 800,000 Swiss citizens residing abroad.
The revised inheritance law is expected to give Switzerland a competitive advantage in the financial sector, attracting individuals seeking favorable estate planning options. This reform not only strengthens Switzerland's position as a leading financial center in Europe but also serves as a potential model for other jurisdictions facing similar complexities in estate administration.