How can you save on the inheritance tax?
In addition to the tax-free allowances, there are various ways to save on the inheritance tax.
By making a staggered inheritance advance, i.e. withdrawing the inheritance over several years, the progressive taxation may be avoided. In addition, the heirs can benefit from any increases in value.
Since the gift tax may be lower than the inheritance tax, it can be worthwhile to gift part of the potential inheritance during the testator's lifetime.
Furthermore, the appointment of a reversionary heir may have a tax-reducing effect. A reversionary heir is a person who receives an inheritance after someone else has already inherited it. Accordingly, a reversionary heir is a kind of second or substitute heir. Because, depending on how the relationship is structured, the previous heir may only be able to dispose of an inheritance to a limited extent, the tax burden may be lower if a reversionary heir is appointed.
As a last solution heirs may take advantage ot the option of transferring domicile. Because the inheritance tax is levied on a cantonal basis, in the case of a large inheritance it may be worthwhile to move in order to save taxes. But beware: this trick is useless in the case of real estate inheritances. In this case, the tax is levied in the canton where the property is located.