A second home is often much more than a property. It is a place of memories, of passing things on and of family identity, where several generations come together through the seasons. Yet the death of the owner can turn this place of togetherness into a source of tension.

In Switzerland, in the canton of Vaud and in Villars in particular, where many chalets and apartments are handed down from generation to generation, the question of succession deserves to be addressed well before it arises. Legal, tax and human issues are intertwined, and a lack of preparation often comes at a high price.

When death occurs: the first steps

When someone dies, everything moves quickly. Without planning, heirs can run into immediate obstacles.

What are the heirs’ first steps?

When a person domiciled in the canton of Vaud dies, the death must be reported to the civil registry office. This is generally done by the funeral directors appointed by the family, the hospital or the doctor. The relevant institutions are then informed, in particular the Justice of the Peace, which is the authority competent to issue the certificate of inheritance. Each canton has its own procedure. In Geneva or Bern, for example, it is notaries who are competent to issue the certificate of inheritance.

The heirs’ first steps mainly concern organising any ceremony in memory of the deceased. There are then various administrative formalities, notably settling the deceased’s final bills or cancelling contracts.

As a reminder, it is mandatory to submit the deceased’s testamentary dispositions to the competent authority.

Who can access the chalet or apartment immediately?

Provided the authorities have not imposed any blocking measures (seals, for example), the “presumptive” heirs in principle still have access to the deceased’s chalet or apartment in order to take “protective” measures.

Can the property be sold quickly?

Selling a property requires the heirs to have been identified and a certificate of inheritance to have been issued. How long this takes varies from case to case.

If the deceased was domiciled abroad, official documents from the competent authority in the country of domicile must be provided. These documents must be translated into French and bear an apostille (an international certificate of authentication).

What happens if the will is old… or doesn’t exist?

If there is no will, the law determines who the heirs are. They are then referred to as statutory heirs. In Switzerland, statutory heirs depend mainly on the deceased’s marital status (married or not) and on whether they had descendants.

A will has no expiry date. However, if it is very old, its clauses may no longer reflect the deceased’s current wishes. That is why it is advisable to review your testamentary dispositions regularly to make sure they still fit your changing personal circumstances.

Swiss inheritance law: what many people don’t know

Swiss inheritance law is full of rules worth knowing as soon as you own property.

Can you freely leave your property to just one child?

Swiss inheritance law provides that the surviving spouse and the children are what are known as “protected heirs”. A minimum share of the deceased’s estate must go to them: this is known as the “reserved share”. However, the law does not require all children to be treated equally. Leaving a property to a single child is therefore possible, provided the estate is large enough for the other protected heirs to receive the minimum share (reserved share) to which they are entitled, or the child receiving the property is able to compensate the others personally. The other protected heirs may also agree to the arrangement and waive part of the deceased’s estate.

What does the reserved share cover?

Swiss law recognises two categories of protected heirs: the surviving spouse and the descendants. The reserved share is half of their statutory share.

In this respect, an important change in the law came into force in 2024 with the abolition of the parents’ reserved share. Since then, an unmarried person with no descendants has been entirely free to dispose of their estate as they wish.

What happens in blended families?

Heirs are defined by their family relationship with the deceased. In blended families, therefore, the spouses do not have the same heirs. The order in which they die then has a significant impact on the final distribution of the estate. In a blended family, it is essential to seek advice on succession matters.

What are the risks of a poorly drafted will?

A will that does not comply with the legal framework (the reserved shares, for example) can be challenged. Likewise, an unclear will can lead to disputes between heirs (over how to interpret the deceased’s wishes).

International situations and second homes

Villars attracts buyers from all over Europe and beyond. As soon as a succession crosses borders, the risk of mistakes multiplies.

Which law applies if the owner lived abroad?

The Federal Act on Private International Law (PILA) gives jurisdiction to the authorities of the place of domicile to settle the estate of a person domiciled abroad. Switzerland only has jurisdiction if the country of domicile does not deal with the transfer of the property located in Switzerland. In that case, proceedings must be opened before the competent Swiss authority. In practice, such cases are fairly rare.

Can foreign heirs keep the property?

It depends on each situation. In Switzerland, the Federal Act on the Acquisition of Real Estate by Persons Abroad (Lex Koller) sets out the conditions under which a foreign national may own property.

Statutory heirs are allowed to keep a property in Switzerland.

However, an heir who is not a statutory heir may acquire the property, but only on condition that they sell it within two years. If they can prove close ties to the property that deserve protection, authorisation may be granted without this condition.

Note also that foreign nationals cannot hold a property through a trust, a holding structure frequently used in English-speaking countries.

What are the tax implications for non-Swiss heirs?

The canton of Vaud is entitled to levy inheritance tax on any transfer of property located in the canton, regardless of the tax regime the deceased was subject to in their country of domicile.

Producing a tax inventory covering the foreign deceased’s worldwide assets can sometimes reduce the tax, or even eliminate it altogether.

Tax and financial aspects

Behind the sentimental value of a property lie very real financial consequences. Here is what you need to know about tax in Vaud.

What is inheritance tax in the canton of Vaud?

The canton of Vaud is entitled to levy inheritance tax when the deceased was domiciled in the canton or when the estate includes a property located in the canton.

The tax rate depends on the family relationship with the deceased, and also on the municipality where the deceased lived or where the property is located.

The canton of Vaud does not levy tax between spouses. Children are exempt if they each inherit less than CHF 1’000’000.- (worldwide assets).

It is also worth noting that the tax is levied on 80% of the property’s tax valuation (which may, however, be revised at the time of death).

What are the tax implications of a quick sale?

When a property in the canton of Vaud is sold, the seller is liable for property gains tax. This tax applies to the difference between the purchase price and the sale price. The rate decreases with the number of years of ownership. The minimum rate is 7%.

When a property is acquired through inheritance, the heirs benefit from the deceased’s years of ownership and can also rely on the deceased’s purchase price.

What happens to the mortgage on death?

Heirs inherit both assets and liabilities. So if the estate includes a property, the heirs inherit both the property and the debt attached to it.

Can heirs be forced to sell?

To pay the taxes, or to repay a mortgage if the bank terminates the loan, it can happen that heirs are forced to sell an inherited property quickly.

Family conflicts: the reality on the ground

A family property can unite as much as it can divide. Protecting family harmony matters as much as protecting the estate.

What if one heir wants to keep the chalet and the others want to sell?

Any decision concerning a property held jointly by several heirs, whether to keep it, sell it or allocate it to one of them, always requires the unanimous agreement of the heirs (a majority is not enough). If no agreement can be reached, an action for division can be brought before the courts, since “no one can be required to remain in joint ownership”.

How is the property’s value determined?

The value of a property must be agreed jointly by the heirs.

Property experts can help heirs determine a property’s value. It is advisable to choose a joint expert, or to allow each heir to appoint their own.

Can a sale be forced?

As dividing a property “in kind” is generally not possible, the court may order the sale of the property and the division of the proceeds between the heirs.

How can deadlock between siblings be avoided?

The deceased can, for example, set rules for allocating the property in their testamentary dispositions to avoid deadlock between heirs. It is also possible to gift a property during one’s lifetime, ideally with the agreement of all the children.

The main difficulty with a property often stems from the impossibility of dividing it in kind. On top of this come the delicate question of a fair valuation, emotional factors, and the interests and financial means of each sibling, which may differ.

Planning ahead wisely: the tools available

The good news: tools exist to pass things on with peace of mind. Planning ahead is above all about making life easier for your loved ones.

Lifetime gifts: a good or bad idea?

A lifetime gift can be a way of planning a succession in advance. It is indeed possible to give away a property during your lifetime. The gift can be outright or made with a reserved usufruct, which allows the person making the gift to keep the use of the property. However, you should be aware that a gift means a loss of control over these assets, and that the value of the gifted property will be taken into account to ensure that each child has received their reserved share.

Usufruct: an elegant solution?

Usufruct allows its holder to keep the use of the property and the income from it (rent, for example), while bearing all the associated costs (including taxes).

At what age should you start planning?

There is no set age to start planning your succession. As soon as you have assets (whether movable or real estate), the question becomes important. It is a matter of understanding the legal framework and checking whether it matches your wishes, or whether you need to make arrangements. Succession planning is meant to evolve with each stage of life. You may want to protect your spouse (by ensuring they can keep the family home, for example) or to avoid conflict between your children.

What are the three essential tips for an owner over 60 in Villars?

It is essential to take stock of your assets, to understand the legal framework and to think about your wishes in the event of death (and about whether you need to make testamentary dispositions).

Passing on a place, not a problem

The mountains remain. The emotional value of a second home is immense, and that is precisely what makes passing it on so delicate. Without preparation, it can become a heavy, slow and contentious process, when a little planning would have been enough to preserve what matters most.

Planning ahead does not mean rushing things or giving up control of your assets. It means taking stock, understanding the legal framework and clarifying your wishes, so that your loved ones have peace of mind when they need it most.

Because, in the end, it all comes down to two sentences. A second home that is passed on well remains a legacy. One that is poorly prepared becomes a legal file.