In this way, family peace is preserved

Mother Regula (69): Are you all here? Your father and I had a lot of respect for this conversation. Because it is an important issue that raises a few tricky questions: our heritage.

Father Kurt (71): We put it off a little. Those who are healthy and active do not think about their own death. But now we want to discuss our ideas for inheritance planning with you and hear your opinion. After our conversation with the bank advisor recently, we found that this is the moment.

Daughter Petra (38): Isn’t that just your thing? Dani and I just take it as it comes.

Mother Regula: In terms of retirement planning, that was OK. We dealt intensively with our income and the need for funds after retirement and, as part of the solution, invested the assets in three “strategies”: one to cover current expenses, then to finance our evening’s life, and thirdly to see what will one day be your inheritance.

Father Kurt: Thanks to the planning, we now have a good overview of how much remains to pass it on to you. We would like to determine this legally together with you.

Son Daniel (41): “Legally”? Petra and I get along very well …

Mother Regula: Fortunately, yes! Unfortunately, we have often seen among friends and acquaintances that tensions or even arguments can arise because one of the children feels that they have been treated unfairly. Especially when real estate is part of the legacy, there can be more upsets. We would like to spare our family that.

Father Kurt: Basically there is a legal regulation. But we would rather plan together with you and use the scope within the limits of the law to optimally realize your and our wishes.

Mother Regula: It’s also a bit more complex for us because we live in our own house and own a holiday apartment. In addition, we already gave Petra a larger amount in advance of inheritance when she and her husband Roger became parents and therefore built their own house. We would also like to make a donation to two social institutions.

Son Daniel: I am glad if you speak to her about the house. I never found the right moment or the words. So right now: Corinne and I would like to take over your house one day. I love the old walls I grew up in – although a renovation wouldn’t hurt (laughs).

Daughter Petra: But what happens to mommy and daddy? For example, if one parent dies, do you want to kick the other out?

Son Daniel: No of course not. But you already have a house …

Mother Regula: Slow down, children! Kurt and I both agree that he or I will stay as long as we want – even if we are widowed. There are different ways to certify this.

Father Kurt: By the way, we wouldn’t know any of this if we hadn’t found out more from the advisor and the wealth planner at the bank. You also suggested that we draw up a precautionary mandate in the event that we were no longer able to judge. Children, it’s never too early for good advice!

Mother Regula: Above all, it is important to us that you are treated equally. After our death you should each receive half of the total assets, minus the two bequests. Of course, we don’t yet know exactly how much that is.

Father Kurt: If you both agree, Dani will get the house. That must then be appreciated. Half of the value is yours, Petra. But you have to deduct your inheritance advance from this.

Mother Regula: Dani will then make up for the difference. There should be sufficient funds for this in our cash and securities assets.

Daughter Petra: That sounds fair. And how do we regulate the holiday home?

Father Kurt: You could inherit and use the apartment together. Or it only goes to one of you two, in return the other would receive more from the cash assets.

Son Daniel: So, a shared holiday home sounds good. And if Petra or I want to get out, we can sell our share of the apartment to each other.

Mother Regula: Right. But one point is still important to us: We want our house to stay in the family for the long term. Because Dani has no children, we want the house to go to Petra or her children after his death.

Son Daniel: That makes sense. But I also want to find a fair settlement for Corinne. She has been my partner for many years and may outlive me.

Mother Regula: Exactly. Since you are not married, your inheritance would go entirely to your sister – or to us.

Daughter Petra: Wait, the parents inherit their own child? Is the?

Mother Regula: Yes. The asset planner has told us that we will even have a compulsory portion until the end of 2022. Even with a will, we as parents could not be excluded from a compulsory share in the inheritance. From 2023, however, the parents’ right to a compulsory portion will no longer apply, as is the case with siblings today. Those who are not married and have no children can now freely dispose of a larger part of their estate.

Son Daniel: Wow, I didn’t know that!

Mother Regula: Therefore, you absolutely have to draw up a will in which you secure Corinne and note that she can stay in the house, even if you would bequeath the house to Petra or our grandchildren according to our wishes. The best thing to do is to discuss this with Corinne and your wealth planner at the bank. So Corinne knows what inheritance taxes could be expected as a cohabiting partner. In general, because of the more complex cohabitation relationship, we recommend early retirement and financial planning, Dani.

Son Daniel: Thanks very much! Corinne and I will definitely tackle financial and pension advice.

Father Kurt: Excellent! So then mother and I will each draw up a will that will record the agreements. Or we write everything down in an inheritance contract, which we all sign together and which is officially recorded. That would be absolutely binding, as subsequent changes are only possible if everyone agrees.

Daughter Petra: I think a binding regulation is good. And if something should change in the future, we will discuss it again together. Thank you for discussing everything openly with us!

Son Daniel: An inheritance contract also seems to me to make sense, so everything is clearly defined.

Mother Regula: In any case, our advisor suggested that the four of us sit down with her again and discuss the options in detail.

Daughter Petra: That seems very reasonable to me. And I’ll take care of my pension and estate situation as a married mother of two children – I’ll make an appointment first thing tomorrow!

Son Daniel: I, too, will definitely seek advice, especially with regard to the cohabitation. Who knows, there might even be a wedding at the end …