Many do not deal with inheritance until late in life. Just under half of the 51- to 79-year-olds have settled their estate. Many would like an inheritance advance for home ownership, but only a few enjoy it.
Only a few people between the ages of 18 and 79 plan their inheritance specifically and at an early stage. Most do not deal with the heir until they are confronted with it themselves. Because of increasing life expectancy, this is increasingly the case. Those who receive an inheritance in Switzerland are usually over 50 years old. This has consequences: those who do not settle the estate in time may no longer be able to determine who will receive what or how much, and may also run the risk of inheritance disputes. This is shown by a representative survey of the Swiss population conducted by Raiffeisen Switzerland and the ZHAW School of Management and Law.
Not even half of them have settled their estate
Three-quarters of those surveyed who want to pass on wealth have clear ideas about what to do with their inheritance – especially when it comes to home ownership. 33% of those surveyed want to financially support their descendants to buy a home, and 24% want to pass on their home ownership while they are still alive. «Because people are getting older, inheritance is usually a financial blessing later. This is probably one reason why 34% want to benefit the next generation – usually the grandchildren – already», says Tashi Gumbatshang, Head of Competence Center for Assets and Pension Advice at Raiffeisen Switzerland. Documents such as an inheritance contract or will are usually drawn up after the age of 50. The survey shows that only 46% of people aged 51 to 79 have settled their estate.
Pre-inheritance remains a dream for many
Of the respondents, 35% expect to receive an inheritance or inheritance preference in the future. Of the 18- to 30-year-olds, slightly more than a third (35%) would prefer an inheritance preference, and 14% would even expect it. The younger the respondents, the more important are the real estate-related motives: 49% of 18- to 30-year-olds would use inheritance preference to finance their own flat or house, while 18% would use inheritance preference to take over their parental home. Among 31- to 50-year-olds, this is already lower, at 36% and 15%, respectively. Frank Frey, co-head of the Expert Centre for Inheritance Counselling at Raiffeisen Switzerland, commented on this finding: «Today, many young people can only afford a home of their own thanks to the financial support of their parents. It is also the intention of many parents to pass on wealth so that the children can live in their own four walls.»
By contrast, the desire of descendants to receive the funds when they really need them is met only by few. The vast majority of deceased people want to pass on their property only after death. Only 17% of those surveyed plan to make an inheritance or gift. The survey also shows that the intention to pass on property at an early age depends heavily on the number of children. More than a quarter of those surveyed with two or more children say they want to pass on part of the inheritance before death. In the case of people with one child, it is 17% and in the case of people without children only 7%.
Knowledge gaps carry risks
The survey shows that knowledge about inheritance increases with age. For example, the vast majority of people over the age of 50 know that inheritance tax varies from canton to canton, and that the tax depends on both the degree of kinship and the amount of inherited assets. There are large gaps in knowledge about cohabitation. Just under half (47%) of people over the age of 50 know that cohabitation partners are subject to the highest inheritance tax rate in many cantons. Only one-third of the youngest age group of 18- to 30-year-olds know this. Similarly, 35% of 18- to 30-year-olds and one-quarter of 31- to 50-year-olds do not know that cohabiting couples must favor each other in their wills or contracts of inheritance in order to be entitled to inherit at all. Among those over 50, this is a question mark for significantly less than 20%. «Lack of knowledge clearly entails great risks in such life constellations, as appropriate precautions are not taken in time», says Dr. Jürg Portmann, Co-Head of the Institute for Risk & Insurance at the ZHAW School of Management and Law.
About the survey
For this survey, carried out by Raiffeisen Switzerland and the ZHAW School of Management and Law, 1'151 people from the Swiss population aged 18 to 79 were interviewed using a stratified random sample using a link panel from 11 April to 24 April 2024. The representativeness of the sample is to be assessed as high due to the panel quality, although as with all online surveys, there is a bias towards a higher level of education and greater online activity. Higher levels of education, in particular, are likely to lead to higher scores on income and wealth issues. Objectivity is high, as the data were collected by means of a standardized questionnaire and statistically evaluated.
Inheritance was defined as an allowance of two months’ wages or more. The survey shows only significant differences (95% confidence level). The methodology of the cross-sectional survey is well suited for obtaining a picture of the knowledge, attitudes and feelings of the Swiss population. However, causal conclusions are not possible.