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Parents and their children can have different ideas about how the family's assets should be passed on. Decisions made by one party do not take everyone's wishes into account. As well as legal requirements and financial conditions, emotional aspects also play an important role.
In principle, advancements on succession are regulated by law. The value of an amount paid in cash remains the same over time. But what happens if the ownership of real estate property is transferred in advance? And what does the law have to say about financing courses of study of different durations and costs? What should you bear in mind if you decide to give your stepchildren preferential treatment? How should assets be invested so that advancements can be balanced out in the event of death?
Anne Z. (70) had to ask herself all these questions. She wrote a will to make sure that all her heirs would receive their fair share of her estate, and to prevent any disputes.
Anne Z. is proud of her children. As well as children from her first marriage, she also has stepchildren.
I'd like to give my son from my first marriage a plot of land as an advancement, and leave my daughter the equivalent value in cash. My two stepchildren should be treated the same way as my biological children after my death.
In principle, advancements are deducted from the heir's subsequent share of the inheritance. A million francs in cash remains a million francs. However, in the case of property, the rules are slightly different: the market value on the date of the death of the bequeathing party is taken as the basis for calculation; as a result, the legal share of the inheritance due to certain heirs may not be respected. Money spent on children's education is not generally regarded as an advancement provided that it does not exceed the usual limits. Stepchildren are not normally entitled to inherit, and receive nothing.
Anne Z. has several options if she writes a will. She can, for instance, specify that the plot of land she wants to give her son should not be valued at market value. She could also indicate that the cost of each child's education should be factored into the inheritance. And she can add clauses in favor of her stepchildren. She must be careful to observe the minimum legal share of the inheritance due to her children from her first marriage.
Make sure that you have thought of everything. We have put together two documents to provide you with information and assistance. Order them now and we will be happy to send them to you by e-mail free of charge.