“Assets” learning path: module 4 of 4

Deciding how and when to pass on your assets doesn’t just affect the future, but also the structure of your wealth and your investment strategy today. That’s why it makes sense to include succession planning in your overall financial strategy. 

When we talk about Legacy in our advisory approach, we focus on the assets you plan to use to help your loved ones or to contribute to society. The goal is to make deliberate, thoughtful decisions about what you want to pass on – to family, those close to you or to projects and causes you care about. Because the time horizon here is often long, your investment strategy may differ from Liquidity and Longevity.

It’s also important to think about what will happen to your assets after you’re gone – and whether you want to set your own rules. This is where careful estate planning makes all the difference.

The first module explains how the three perspectives – “Liquidity”, “Longevity”, and “Legacy”  – work together to structure your wealth.

If you don’t make your own arrangements – by drafting a will, for example – the law of intestate succession, which specifies who receives what portion of your assets, will automatically apply upon your death. Legal heirs include spouses and children, and other relatives may also be considered, depending on your family situation.

Pay attention to the special rules for blended families and unmarried partnerships

Non-traditional family structures like cohabiting couples or patchwork families need extra attention in estate planning. Cohabiting partners are not entitled to inherit anything unless you make special provisions in advance. In blended families, different relationships and expectations often collide, which can complicate estate planning.

That’s why it’s important to plan with intention and clarity. If you don’t make your own decisions in advance, the law takes over and decides how your assets are divided, which may not reflect your wishes.

Make the most of your legal options when planning your estate

If you’d like to decide for yourself who inherits your assets, when they receive them and how much they get, an estate plan gives you that control. Here’s what matters: You’re free to decide what happens with the part of your estate called the “free quota”, but you still have to honor the compulsory portions for certain heirs. 

The compulsory portion guarantees a minimum portion of an inheritance to someone entitled by law, whether or not the deceased wanted them to benefit. Depending on the situation, the people protected by inheritance law are the spouse or registered partner, as well as the children. This portion of your wealth isn’t yours to dispose of as you wish.

The remaining part of your estate is called the free quota. The free quota is the portion you can choose to give as you like, within legal limits.

You only have this flexibility if you actively communicate your decisions, such as through a will or inheritance contract. If you don’t make your own arrangements, the law decides who inherits.

Wealth can be passed on during your lifetime or after you’re gone. Each path leads to a different goal and comes with its own legal, tax and family consequences. They also help you choose which investment strategy is right for you.

The chart below shows these options across two dimensions: timing of the transfer (during your lifetime or after your death) and type of beneficiary (family or others). 

There are various tools available for estate planning. The right option for you depends on your own situation and how much certainty you want.

Will

A will is a personal, one-sided decision about what happens after you die. You decide who gets what from your estate when you pass away. You can change a handwritten will at any time, and you don’t need a notary. However, it must be handwritten , dated and signed.

Inheritance contract

An inheritance contract is made together with all parties involved and is binding for everyone who signs it. It’s especially helpful when you need to balance different interests or want to agree on a solution with everyone involved early on. For an inheritance contract to be valid, it must always be notarized.