Swiss-UK cross-border Estate Planning

David Wallace Wilson

FOSSUK Retirement and Estate Planning

FOSSUK: Swiss cross-border Estate Planning 10 September 2015 Page 2/8

Swiss Cross-Border Estates Principles

Switzerland

Basis 1 law to governs entire estate

Connecting factor Domicile in the civil sense

Law governing the estate As per the conflict rules of the country of the deceased’s last domicile

Specific international treaties 5 (old) treaties, including 1 with UK

Recognition of foreign acts… Very liberal

…especially of foreign wills Party to the 1961 Hague Convention on the Conflict of Laws relating to the Form of Testamentary Dispositions

EU Succession Regulation’s impact on CH-UK matters?

None as:UK opted out (§82)Intl treaties remain in force (§73)

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When Swiss Succession Law applies

Switzerland

Matrimonial regime To be liquidated before one can handle the estate!

Forced heirship regime Yes

… but not part of Swiss public policy

… and limits thereto:

1. Opt-out / professio juris Possible, in favour of one’s law of citizenship(s)

2. Succession pact Possible, among forced heirs

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Swiss Inheritance Taxation

IHT Levied at the cantonal level only(Federal 20% initiative rejected in ‘15!)

Scope of application 1. Deceased domiciled in Switz.2. Real estate situated in Switz.

Tax-free allowances Yes, varies per canton

Progressive rates Yes, varies per canton:0-15% for spouse & descendants20-50% for third parties

Additional tax benefits? Yes, if CH resident on the forfait / lump-sum tax basis

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Double Death Tax Treaties

Swiss network Austria, Denmark, Finland, Germany, Netherlands, Sweden, UK, United States of America

EU Succession Regulation’s impact on CH-UK matters?

No, as taxation out of scope (§10)

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Double Death Tax TreatiesSwiss-UK Procedure for Movable Assets

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PensionsSwiss-UK overview

> Free Movement of Persons Agreement CH-EU of 1999> Effect of 9th February 2014 vote?

> Coordination of the social security systems (art.8 ACT and Appendix II)> “The coordination rules must guarantee that persons moving within the

Community and their dependants and survivors retain the rights and the

advantages acquired and in the course of being acquired.” (§13 EC

Regulation 883/2004)

> CH->UK: Restriction to the cash payment from the Swiss pension fund if one

continues to be compulsorily insured against the risks of old age, death and

disability in another EC country (art. 25f LFLP)

> UK->CH: CERN Pension Fund recognised as QROPS

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David Wilson

david.wilson@swlegal.ch

Schellenberg Wittmer Ltd / Attorneys at Law

15bis, rue des Alpes / P.O. Box 2088 / 1211 Geneva 1 / Switzerland

T +41 22 707 8000 / F +41 22 707 8001

www.swlegal.ch

Thank you for your attention.

GENEVA / ZURICH / SINGAPORE