Quick Summary
- Parents of children with physical or mental disabilities have some special points to consider when planning their estate.
- Particular caution is required if the child receives supplementary benefits in addition to their IV pension.
- Supplementary benefits are received if the assets of the person concerned are below a certain tax-free amount (CHF 100,000 for individuals). If the child receives so much money through an inheritance that their total assets are above this allowance, supplementary benefits may be reduced or even discontinued.
- It is also possible that the child’s capacity for judgment is impaired due to their disability. This may mean that the child is unable to pass on the family assets.
Supporting a child with a physical or mental disability is undoubtedly very time-consuming and costly for their parents. For example, parents finance a specialized home for their child, organize a sheltered workshop or support their child in coping with everyday life. It is therefore very natural for parents to ask themselves how they can ensure that their child is supported when they pass away.
The possibility of favoring the child with a disability
A first, very obvious consideration for many parents in this situation is to give their disabled child special support. One example is 20-year-old Lia, who attends a specialized home during the week due to her physical disability. At weekends, she relies heavily on the support of her parents and her older brother Marc. When planning their estate, Lia’s parents are now considering leaving less money to their son than to their daughter. They don’t want to do this to favor Lia over Marc. They want to help Lia cover her very high everyday costs even after her parents’ death.
According to Lia’s parents, she would therefore receive financial support from the state as well as from her higher inheritance share. At first glance, this may sound like a convincing plan. However, there are a number of points that could present certain hurdles.
The relationship between inheritance and supplementary benefits
If a person has a physical or mental disability that has a significant impact on their everyday life, it can generally be assumed that they will receive state benefits. In Lia’s example, she receives an IV pension and supplementary benefits. Lia receives supplementary benefits because her assets are below a certain allowance. This asset limit is CHF 100,000 for single people and CHF 200,000 for married couples. The allowance is increased by a further CHF 50,000 per child (as at April 2025). In the specific example, because Lia has assets of CHF 95,500 as a single person, she receives supplementary benefits in addition to her IV pension.
But what happens to these supplementary benefits if Lia suddenly inherits a large amount of money? Of course, this varies from case to case and therefore cannot be answered in general terms. However, it is possible that Lia’s supplementary benefits will be reduced or even stopped completely if her assets exceed CHF 100,000 after the inheritance. If Lia’s parents want to support their daughter in the best possible way, they must make sure when planning their estate that their supplementary benefits are maintained and that no repayment claims arise.
The management of family assets
Ultimately, Lia’s parents must ask themselves whether their daughter will be able to pass on the family assets. Article 467 of the Swiss Civil Code (ZGB) requires, in addition to the age of majority the capacity of judgment of the testator in addition to the age of majority. In Lia’s example above, these requirements are clearly met. At the age of 20, she is of legal age and her capacity of judgment is not impaired, especially as her physical disability has no effect on her cognitive abilities.
However, the situation would be different if Lia had a mental disability, for example. In this case, it would have to be determined whether Lia has capacity with regard to estate planning. As capacity can never be defined in abstract terms, it must always be determined in relation to the specific individual case. The following rule of thumb applies to this determination: the more complex and serious the estate planning, the higher the requirements for capacity.
If Lia lacks capacity with regard to estate planning, this means that she cannot draw up a will or an inheritance contract. This is the case even if she is represented by a guardian. The reason for this is the fact that testamentary capacity is a so-called “highly personal right”. This means that only the testator can regulate their own estate. Neither a legal representative nor a guardianship can settle the estate in Lia’s name. Lia’s parents must therefore be aware that their daughter may not be able to pass on the assets she has inherited. In conclusion, it can be said that favoring a child with a disability does not always have the desired effect. In particular, if the child receives supplementary benefits, it must always be clarified whether an accumulation of assets will result in a reduction or even discontinuation of the supplementary benefits.