Go Back   English Forum Switzerland > Help & tips > Finance/banking/taxation  
Reply
 
Thread Tools Display Modes
  #1  
Old 24.07.2021, 14:57
Newbie 1st class
 
Join Date: Nov 2011
Location: Zurich
Posts: 17
Groaned at 0 Times in 0 Posts
Thanked 0 Times in 0 Posts
raschaoot has no particular reputation at present
Inheritance taxes on common savings/stocks

My girlfriend and I recently became parents and decided to open common savings & investments accounts, i.e. in both our names. We live in Switzerland, contribute according our relative earnings and are not married.

Am I correct in assuming that each of us legally owns 50% of those accounts, such that if one of us unexpectedly dies only his/her half is subject to inheritance laws and taxes? Irrespective of who contributed how much over the course of our lives?

Thanks!
Reply With Quote
  #2  
Old 24.07.2021, 17:00
AbFab's Avatar
Forum Legend
 
Join Date: Sep 2006
Location: Zürich
Posts: 8,338
Groaned at 354 Times in 242 Posts
Thanked 12,279 Times in 4,207 Posts
AbFab has a reputation beyond reputeAbFab has a reputation beyond reputeAbFab has a reputation beyond reputeAbFab has a reputation beyond reputeAbFab has a reputation beyond reputeAbFab has a reputation beyond repute
Re: Inheritance taxes on common savings/stocks

According to the bank/institution where the investment is, it will be 50/50.

BUT:

not according to Swiss inheritance laws. It is a mute point as to whether Swiss or Dutch law would apply. If Swiss law, you will not have a problem with inheritance tax, as there isn't any in Canton Zurich. But you may find that the remaining parent has to hand over more than expected to the child.

The law changes next year, but if you are concerned ask your bank for advice. (It will cost!)
Reply With Quote
  #3  
Old 24.07.2021, 22:44
NotAllThere's Avatar
Forum Legend
 
Join Date: Oct 2008
Location: Baselland
Posts: 13,652
Groaned at 237 Times in 208 Posts
Thanked 20,059 Times in 8,149 Posts
NotAllThere has a reputation beyond reputeNotAllThere has a reputation beyond reputeNotAllThere has a reputation beyond reputeNotAllThere has a reputation beyond reputeNotAllThere has a reputation beyond reputeNotAllThere has a reputation beyond repute
Re: Inheritance taxes on common savings/stocks

Just in case, are you both aware that marriage brings legal rights. Like being able to decide on the welfare of your loved one if they become seriously ill You can gain all the rights of marriage wihtout getting married, but you need to be aware of it and take certain steps.
Reply With Quote
This user would like to thank NotAllThere for this useful post:
  #4  
Old 25.07.2021, 06:23
Forum Legend
 
Join Date: Oct 2014
Location: SG
Posts: 9,318
Groaned at 489 Times in 364 Posts
Thanked 12,417 Times in 6,437 Posts
Urs Max has a reputation beyond reputeUrs Max has a reputation beyond reputeUrs Max has a reputation beyond reputeUrs Max has a reputation beyond reputeUrs Max has a reputation beyond reputeUrs Max has a reputation beyond repute
Re: Inheritance taxes on common savings/stocks

Quote:
View Post
You can gain all the rights of marriage wihtout getting married, but you need to be aware of it and take certain steps.
I don't think that's entirely true. Inheritance for instance is tax-free between spouses and in direct bloodline up- and downwards. Also, spouses are mandatory heirs by law. OP OTOH has no legally protected right to a share of the deceased's wealth, and there'll be inheritance tax due on what's inherited. (Partial) ownership of a joint account would need to be proven, AFAIA, there's always a risk involved and not really negligible efforts at a time you need it the least. Then there's 1st and 2nd pillar (old age pension) on top of that.

Whether married or not, IMO the best prevention for disputes is to keep the goods as if there's going to be a divorce, and if you marry to set up the contract accordingly. If it comes to the worst you're more than busy enough with other stuff, and it's way easier to reach an agreement while you're still able to talk with each other, including agreeing that neither spouse has any right on the income of the other after the separation.
Reply With Quote
  #5  
Old 25.07.2021, 09:05
robBob's Avatar
Forum Legend
 
Join Date: Mar 2012
Location: Zurich
Posts: 2,905
Groaned at 62 Times in 48 Posts
Thanked 2,804 Times in 1,493 Posts
robBob has a reputation beyond reputerobBob has a reputation beyond reputerobBob has a reputation beyond reputerobBob has a reputation beyond reputerobBob has a reputation beyond repute
Re: Inheritance taxes on common savings/stocks

A so called And/Or joint account is required.

https://www.moneyland.ch/en/and-or-j...unt-definition

https://www.ubs.com/ch/en/help/accou...-of-death.html
Reply With Quote
  #6  
Old 27.07.2021, 22:11
Newbie 1st class
 
Join Date: Nov 2011
Location: Zurich
Posts: 17
Groaned at 0 Times in 0 Posts
Thanked 0 Times in 0 Posts
raschaoot has no particular reputation at present
Re: Inheritance taxes on common savings/stocks

Thanks for the responses. Yes, the money is in an and/or account, so that should be fine.

All other points about not being married are of course valid. We did set up a will; max. unmarried partner receives is 25% (rest goes to kid), and indeed subject to inheritance taxes in Zurich. We also drafted Vorsorgeauftrag, Patientenverfügung and registered each other for partner pension in 2nd pillar (allowed by both ours in case of a joint kid).

Yes, quite some paperwork. But the additional ‘marriage tax’ buys a decent compact car every year, so worthwhile.

Actually a welcome side effect of the common investment account would be to ‘transfer’ some of the wealth to the partner that earns less (as 50% is owned but only half put in compared to the other).

Anything not valid in reasoning or something else to think about?
Reply With Quote
Reply




Currently Active Users Viewing This Thread: 1 (0 members and 1 guests)
 
Thread Tools
Display Modes

Posting Rules
You may not post new threads
You may not post replies
You may not post attachments
You may not edit your posts

BB code is On
Smilies are On
[IMG] code is On
HTML code is Off
Trackbacks are Off
Pingbacks are Off
Refbacks are Off


Similar Threads
Thread Thread Starter Forum Replies Last Post
Trading US Stocks while in Switzerland ==> Owe Switzerland Taxes? Shlarin Finance/banking/taxation 30 04.03.2020 08:01
taxes on savings sailorimc Finance/banking/taxation 4 11.03.2019 14:28
Moving Savings / Stocks to CH AmbientLight Finance/banking/taxation 8 22.12.2015 11:18
Advice on how to get by cheaply on savings accounting for Swiss taxes/insurances kinosfronimos Finance/banking/taxation 2 03.06.2015 20:25
Help needed over common taxes, insurances and what-not Seldaek Finance/banking/taxation 8 12.03.2008 20:22


All times are GMT +2. The time now is 16:14.


Powered by vBulletin® Version 3.8.4
Copyright ©2000 - 2021, Jelsoft Enterprises Ltd.
LinkBacks Enabled by vBSEO 3.1.0