Skip to content
Homepage
Contact

Case study

The first succession planning decisions

Why does succession planning begin with the matrimonial property regime rather than with a will?

The importance of the matrimonial property regime in succession planning
The importance of the matrimonial property regime in succession planning
The importance of the matrimonial property regime in succession planning
The importance of the matrimonial property regime in succession planning
Key challenges identified

The inheritance received by the husband does more than increase the family's overall wealth. It also fundamentally changes its legal structure, with significant implications for the rights of the surviving spouse and the children.

In this situation, several objectives must be balanced simultaneously:

  • ensuring the wife's financial security throughout retirement;

  • preserving the family's wealth over the long term;

  • avoiding the forced sale of assets due to a lack of liquidity;

  • supporting the children's projects when they genuinely need financial assistance;

  • maintaining strict long-term economic fairness between them.

An effective succession planning strategy must address each of these objectives at the same time.

Challenge No. 1

Providing lasting protection for the surviving spouse​‌

In this family, most of the wealth is now legally owned by the husband in the form of separate property.

Without specific planning measures, a significant portion of these assets would become part of his estate upon the first death. 

Although the wife would benefit from the rights provided under Swiss civil law, she may not retain the level of economic control she would wish to have over the family's assets. 

The main risks include: 

  • a reduction in freely disposable assets;

  • co-ownership of certain assets with the children;

  • reduced flexibility in managing investments;

  • more complex family decisions if a property needs to be sold at a later stage.

Protecting a surviving spouse is therefore not simply about increasing their inheritance entitlement. It is also about preserving their decision-making freedom and financial independence.

Challenge No. 2

Preserving fairness between the children​‌

The two children are expected to need financial support at very different stages of their lives.

  • The son is planning to purchase a home in the near future.

  • The daughter intends to establish her own medical practice in approximately five years, once she has completed her medical studies.

Providing both children with the same amount of financial support today would therefore not address their actual needs.​‌

Instead, the couple favours an approach based on long-term economic fairness, a principle often adopted by families with substantial wealth.​‌

This approach requires that any financial assistance provided be properly documented so that it can be taken into account when the estate is eventually settled. 

Challenge No. 3

Maintaining sufficient liquidity

The protection of a surviving spouse does not depend solely on asset ownership. It also depends on the ability of those assets to generate income.

A wealth planning strategy should therefore address the following questions:

  • Will the wife have sufficient income to maintain her lifestyle over the next twenty or thirty years?

  • Will the investment portfolio generate returns consistent with her financial needs?

  • Will additional liquidity be required to fund property renovations, healthcare expenses, or potential long-term care needs?

  • Could certain assets need to be sold under unfavourable conditions?

In many cases, these financial considerations can be just as important as the legal distribution of the family's wealth.

Challenge No. 4

Anticipating the tax implications​‌

The planned gifts will need to take several factors into account:

  • the donors' residence in the Canton of Vaud;

  • the son's residence in Geneva;

  • future developments in Vaud legislation relating to gifts;

  • the beneficiaries' reporting obligations.

Tax considerations should never, however, be the sole factor driving a decision.

The civil and family planning strategy should always remain the primary consideration.

 

Protection planning

Why is the matrimonial property regime the first layer of protection?

A common misconception is that succession planning begins at the time of death.

In reality, Swiss law provides for a crucial preliminary step: the liquidation of the matrimonial property regime.

This process determines which assets remain with the surviving spouse before the estate is even opened. It is arguably the most important mechanism in the entire wealth planning process.

Legal steps following the first death

  1. Death of the husband

  2. Liquidation of the matrimonial property regime

  3. Allocation of marital property in accordance with the marriage contract

  4. Determination of the estate

  5. Calculation of the statutory entitlements

  6. Application of the will or succession pact

  7. Distribution of the estate: final allocation among the heirs

Why is this step so important?​‌

Let us look at a simplified example.

The couple owns CHF 1.1 million of net marital property.

  • Without a specific marriage contract:

    • each spouse retains their share of the marital property;

    • only the husband's share of the marital property becomes part of his estate.​‌

  • If a marriage contract provides for the full allocation of marital property to the surviving spouse:​‌

    • the wife immediately receives all of the marital property;

    • only the husband's separate property remains subject to succession rules.

Depending on the composition of the family's wealth, this difference can amount to several hundred thousand, or even several million Swiss francs. 

Let’s discuss your wealth planning goals

Do you have questions about protecting your spouse, ensuring fairness amongst your children, or passing on your estate? Our experts can help you assess your situation and develop a strategy tailored to your personal circumstances and long-term family objectives.

 
Speak with a specialist
economie suisse solide comme un roc-webp

What a marriage contract can achieve

A marriage contract does not alter the statutory entitlements of heirs.

However, it takes effect before the estate is opened, which means it can significantly reduce the size of the estate subject to succession rules.

As a result, it is one of the most effective tools available for strengthening the financial protection of a surviving spouse when the couple's children are common descendants.

In the next episode

Marriage contracts, wills, usufruct rights, and inheritance agreement: discover the key planning tools available to strengthen protection for the surviving spouse.

Read the next episode
Case study

How can you protect your spouse while supporting your children during your lifetime without compromising long-term fairness?

Planning your succession is ultimately about protecting the people who matter most and providing a clear direction for your family's wealth.

Through this case study, discover how our specialists help clients navigate succession planning and build wealth transfer strategies aligned with their family's long-term objectives.

Explore the full case study below, presented as a series of episodes.

  • Summary

    Case study: protecting your spouse while supporting your children

    An overview of our case study, including the clients' profile, the challenges they faced, and the key issues at stake.

    Read the summary

  • Episode #1

    Case overview and family considerations​‌

    Spouse protection, support for children, and family fairness: discover the foundations of this case study.

    Read episode 1

  • Episode #2

    The first succession planning decisions​‌

    Discover why the matrimonial property regime is often the first and most effective way to protect a surviving spouse.

  • Episode #3

    Tools to protect your spouse​‌

    Marriage contract, will, usufruct rights, or an inheritance agreement: discover the key planning tools available to help protect a surviving spouse.

    Read episode 3

  • Episode #4

    Building the right succession strategy​‌

    Compare different planning strategies and their impact on spouse protection, children's interests, and long-term family balance.

    Read episode 4

  • Episode #5

    Supporting your children without creating inequalities​‌

    Lifetime gifts, advancements on inheritance, and family loans: how can you support your children when they need it most while preserving long-term economic fairness between heirs?

    Read episode 5

  • Episode #6

    Frequently asked questions and key takeaways​‌

    Explore the key insights from this case study and find answers to some of the most common questions about succession planning.

    Read episode 6

Meet a specialist

Your time is precious, and we're committed to making this process as smooth as possible.

Academy

  • wealth_solutions Wealth solutions

    Build, grow, and preserve your wealth.

  • Pension_planning Pension planning

    All you need to know about pension planning for people and for businesses.

  • Financing Financing

    Financing options for your real estate project.

  • Investment Investment

    Resources to learn the fundamentals of investment or to specialize.

  • wealth_solutions Wealth solutions

    Build, grow, and preserve your wealth.

  • Pension_planning Pension planning

    All you need to know about pension planning for people and for businesses.

  • Financing Financing

    Financing options for your real estate project.

  • Investment Investment

    Resources to learn the fundamentals of investment or to specialize.

Slide 1
Slide 2
Slide 3
Slide 4
Learn more