Under Swiss inheritance law, several steps must be taken after the will has been opened before the estate can be fully settled and distributed. This procedure can be lengthy under certain circumstances and is associated with costs. This article is intended to give you a rough overview of the procedure after the will has been opened.
Quick Summary
- After death, the will must be submitted to the competent cantonal authority. All heirs and beneficiaries are informed of the contents.
- The certificate of inheritance confirms the right to inherit and is usually necessary in order to dispose of the inheritance. It must be applied for by the heirs at the relevant office.
- Before the estate can be distributed, the deceased’s debts and obligations must be settled. This process is called debt settlement.
- The heirs must reach an agreement on the division of the estate in the estate distribution. This can be done by drawing lots or by means of an inheritance distribution agreement.
- The entire process can take a long time and cost money.
What is the probate of a will?
If a deceased person leaves a will, all heirs and legatees, as well as any third parties, are obliged to submit it to the competent cantonal authority. The authority at the last place of residence of the deceased person is responsible (see Art. 556 ZGB). This is also the case if a will is deemed invalid.
Once the will has been submitted, the will is opened by the cantonal authority. The cantons have different regulations regarding the competent probate authority. Depending on the canton, this may be, for example, the division authority, the cantonal registrar’s office, a notary’s office or similar.
When the will is opened, all heirs and potential beneficiaries are informed of the contents of the will and receive a copy on request and at the expense of the estate. If not all heirs are known, a public announcement is made, the so-called heir call. The costs for the opening of the will depend on the size of the estate and the amount of work involved (number of notifications, identification of heirs, complexity of the case, etc.). In the canton of Zurich, for example, a fee of between CHF 300 and CHF 7,000 is charged. In addition, there are costs for obtaining civil status certificates, documents and information.
What happens next?
First of all: the certificate of inheritance
The administration of the estate is the responsibility of the heirs, unless an executor has been named in the will; this person then takes over the administration of the estate. For the further settlement and administration of the estate, a certificate of inheritance necessary. This provides information about who is entitled to inherit. In other words, you can use a certificate of inheritance to identify yourself to third parties (e.g. bank) as an heir or heiress. Applying for a certificate of inheritance is recommended because without one, it is generally not possible to dispose of the deceased person’s assets and it is necessary to wait until the division of the estate has been completed in order to gain access to the estate.
In Switzerland, however, this is not issued ex officio, i.e. automatically and by law, but can be applied for by the entitled persons at the competent office as soon as all heirs have been established beyond doubt or one month after the will has been opened. If there is neither a will nor a contract of inheritance, the legal heirs can apply for a certificate of inheritance without waiting for the will to be opened.
If the entitlement to inheritance of the appointed heirs is questioned, the inheritance will not be processed further for the time being and the appointment of an estate administrator may be necessary. The legal heirs are granted a period of one month to contest the entitlement of the appointed heirs by lodging an objection.
Various documents are regularly required to apply for a certificate of inheritance:
- Copy of the death certificate (issued by the registry office)
- Proof of entitlement to inherit (e.g. in the case of legal heirs by means of an extract from the civil register)
- Declaration of acceptance of the inheritance
Depending on the complexity of the case, it can take between six and twelve weeks for the authorities to complete their examination and issue a certificate of inheritance. In addition, it can take up to three months before a certificate of inheritance can be issued to all entitled persons. During this time, all entitled heirs must decide whether they wish to accept the inheritance at all or whether they wish to disclaim it.
The costs incurred vary from case to case and can be in the three- to four-digit range. Please also note that, depending on the circumstances of the inheritance, several certificates of inheritance should be ordered. This is because some authorities, such as the land registry, always require an original, while a copy is sufficient for other authorities and institutions.
Important: The certificate of inheritance is not a final entitlement to the inheritance and is merely a provisional entitlement. It is still possible for the other heirs to contest the will, for example by bringing an action for invalidity or an action for reduction.
And afterwards?
Before a distribution can take place, all assets, debts and other obligations of the deceased must usually first be listed in an inventory – which can be made public on request. This is followed by a settlement of debts, in which all obligations and debts such as outstanding bills, loans and the like are settled. Only then can the remaining, adjusted estate be distributed in accordance with the instructions in the will. If there are several heirs, an agreement must be reached on the distribution of the estate, which is known as the distribution of the estate.
The community of heirs has two options for settling the estate: Either it forms “lots” and divides them up among themselves or the heirs conclude an inheritance distribution agreement as to who receives which assets. This contract must be signed by hand by all the heirs. Please also note that, depending on the canton and degree of kinship inheritance taxes may be incurred. Depending on the canton, the inventory is often used for the calculation. The heirs must submit the inheritance tax return and pay the corresponding taxes.
Once all debts and taxes have been settled, the remaining estate is divided according to one of the two procedures, which dissolves the community of heirs. Each heir thus becomes the new owner of the assets allocated to them. In the event of disagreement, a court can be called in to settle the division of the estate. Once all assets have been distributed and all debts have been settled, the inheritance is formally closed.
Do you have questions about the process or are you going through probate proceedings and are unsure? Register here for a free initial consultation with experienced specialists.