The management of movable assets located abroad as part of an international succession raises many complex legal issues. In Swiss law, the treatment of these assets requires particular attention because of their cross-border implications. The subject brings into play aspects of private international law, taxation and procedure that require specialized expertise. The stakes are high: ensuring efficient and compliant transfer of international movable assets, while respecting the wishes of the deceased and the rights of heirs. Let’s take a look at the fundamental principles and practical challenges that govern this area in Switzerland.
The treatment of movable assets located abroad in an international succession is governed in Switzerland by the Federal Act on Private International Law (LDIP). This law defines the rules of jurisdiction and applicable law in inheritance matters when foreign elements are present.
According to article 86 of the LDIP, the succession of a person whose last habitual residence was in Switzerland is in principle subject to Swiss law. However, a testator may choose to subject his estate to his national law by testamentary disposition or agreement as to succession. This choice of law offers a degree of flexibility in international estate planning.
Specifically for movable property, the principle of unity of succession prevails in Swiss law. This means that the entire estate, including movable assets located abroad, is in principle subject to a single inheritance law. The aim of this approach is to simplify the settlement of inheritances by avoiding the fragmentation of assets.
However, there are exceptions to this principle:
Determining the law applicable to foreign movable property therefore requires a case-by-case analysis, taking into account the personal situation of the deceased, the nature of the property and any international treaties in force.
One of the crucial first steps in dealing with foreign personal property is to identify and locate it precisely. This can be a complex task, especially when the deceased owned assets in several countries.
Several sources of information can be used to draw up a complete inventory:
In some cases, it may be necessary to call in specialized professionals such as probate genealogists or private investigators to trace assets whose existence was unknown or uncertain.
Once the assets have been identified, their precise location must be established. In the case of bank accounts, it will be necessary to determine in which country the bank holding the account is located. For tangible assets such as works of art or jewelry, it will be necessary to know where they are physically stored.
The location of the property is crucial as it can have an impact on :
It is advisable to draw up a detailed inventory of foreign movable property, specifying the nature, estimated value and location of each item. This document will serve as a basis for subsequent estate settlement procedures.
Bank accounts are an important category of movable assets, often held abroad. Their treatment in inheritance matters can be tricky, due to banking secrecy rules and procedures specific to each country.
In Switzerland, the transfer of foreign bank assets is in principle subject to Swiss inheritance law if the deceased had his last habitual residence in Switzerland. However, foreign banks will apply their own procedures for the release of funds, which may require additional steps.
Foreign banks often require :
These documents often need to be translated and legalized, which can lengthen the time it takes to settle the estate.
The accurate valuation of movable assets located abroad is a fundamental step in the inheritance process. It is necessary both to determine the rights of heirs and to meet tax obligations.
Under Swiss law, estate assets must be valued at their market value on the day of death. In the case of movable property abroad, this valuation can be complex due to several factors:
For certain types of property, it may be necessary to call in international valuation experts. This is particularly the case for :
Once the valuation has been carried out, the foreign movable property must be declared to the relevant authorities. In Switzerland, this declaration is generally made to the tax authorities in the canton of the deceased’s last domicile.
The declaration must include :
It is essential to ensure the accuracy and completeness of this declaration. Any omission or undervaluation could lead to tax penalties and complications in settling the estate.
Holding movable assets abroad can have significant tax implications, both for the deceased’s country of residence and for the countries where the assets are located.
In Switzerland, inheritance tax is levied at cantonal level. Each canton has its own inheritance tax rules, but most include foreign movable assets in the tax base.
However, to avoid double taxation, tax credit or exemption mechanisms may apply if inheritance tax has already been paid abroad. These mechanisms are provided for either by double taxation agreements or by Swiss domestic law.
It is imperative to verify the tax situation in each country concerned, and to anticipate any tax or payment obligations. Appropriate tax planning can optimize the overall tax burden of the estate.
The effective transfer of movable assets located abroad often requires specific procedures, which can vary according to the nature of the assets and the countries concerned.
For bank accounts, the procedure generally involves :
For tangible goods such as works of art or jewelry, you will need to consider :
In some cases, it may be necessary to obtain a local court decision recognizing heirship or validating the will. This procedure, known as exequatur, can be lengthy and costly.
It is advisable to coordinate procedures between the various countries involved, to avoid contradictions or blockages. A global approach to succession, taking into account the specificities of each jurisdiction, will optimize the transfer process.
The complexity of procedures for transferring foreign moveable assets often justifies the use of professional intermediaries. These may include :
These professionals can add significant value by :
Their intervention can be particularly useful in complex cases involving multiple jurisdictions or high-value assets.
The management of foreign movable property in international estates raises a number of challenges facing practitioners today.
One of the key issues is coordination between different legal systems. Despite international harmonization efforts, there are still differences between countries when it comes to inheritance law. These differences can lead to conflicts of law or to a legal vacuum.
To overcome this challenge, a proactive approach is recommended:
Another major issue is international tax transparency. With the development of automatic information exchange between countries, the holding of movable assets abroad has become more visible to tax authorities. This means:
In the face of these challenges, practical solutions are emerging. The use of digital tools to manage and track international assets is growing. These platforms enable better traceability of assets and facilitate coordination between the various parties involved.
In addition, ongoing training of legal and tax professionals in the specificities of international successions is becoming essential. Mastery of international conventions, rules of private international law and foreign practices is a major asset in effectively managing these complex situations.
In this context, the role of specialized law firms is of the utmost importance. Their multi-disciplinary expertise and international network enable them to provide tailor-made solutions to the problems associated with foreign movable property in inheritances. They can play a decisive role in navigating the complexities of international inheritance law and ensuring the best possible transfer of assets.
Ultimately, the management of foreign movable property in international estates remains a constantly evolving field. Adapting to changes in legislation, anticipating tax issues and mastering cross-border procedures are all necessary skills to meet the current challenges of this complex but exciting area of Swiss law.