Workshop by Daniel Bader and Hanna Brozzo on the occasion of the ISIS) seminar on November 12, 2024 entitled "Usufruct and right of residence as design elements of estate planning for real estate "
Note: This language version is an automatically generated translation. The text may therefore contain linguistic and terminological errors.
view in original language (German)Anna and Beat are a married couple with two children, Caroline and David. They decide to transfer their property in Uster, ZH (alternatives: Köniz, BE / Chur, GR) to Caroline as an advance on her inheritance.
Anna and Beat want to continue living in the property and reserve for both of them a lifelong exclusive right of residence. The property is no longer encumbered by a mortgage.
At the time of the transfer, Anna is 60 and Beat is 70 years old.
Two years after the transfer, the heating system breaks down and needs to be replaced. This incurs costs of CHF 50,000. In addition, the regular maintenance costs amount to CHF 3,000.
The property values are:
Same initial situation as in the basic facts, but Anna and Beat have no children. As a token of gratitude for her loyal service, they gift the property in Uster, ZH (alternatives: Köniz, BE / Chur, GR) to their long-time housekeeper Erica, subject to her exclusive right of residence.
As in the basic facts or Variant I, but the property in Uster, ZH, is additionally encumbered with a mortgage of CHF 0.7 million, which Caroline / Erica must assume (in addition to Anna and Beat’s right of residence).
After 10 years, Anna and Beat move into a senior living apartment and voluntarily (Variant: involuntary move to a nursing home due to need for care) and without compensation (Variant: in exchange for payment at the then-current present value) waive their right of residence in the property in Uster.
What are the tax consequences for the parties involved?- Upon transfer of the property?
During the term of the right of residence, if:1. costs are borne in accordance with statutory regulations, 2. Anna and Beat bear all costs incurred in connection with the property)?
Upon termination of the right of residence in the property in Uster1. due to the death of Anna and Beat, 2. or through Anna and Beat’s waiver (= Option III)?
What value must Caroline have credited to her as an advance on her inheritance for the property in Uster if the market value of the property at the time of inheritance is CHF 2 million?- In the basic facts
What are the consequences for Anna and Beat if, in
Variant III, they have exhausted their assets and apply for supplementary benefits?
The married couple Fabian and Gabriela have two adult children, Haiko and Isabel.
They are wealthy and own real estate in the cantons of Zurich, Bern, and Graubünden worth a total of CHF 100 million, as well as movable assets (primarily equity interests and securities) worth an additional CHF 100 million.
Fabian and Gabriela wish to optimize their asset and estate planning in light of the inheritance tax initiative.
They do not consider unconditional gifts of assets to Isabel and Haiko or relinquishing control over assets and transferring them to third parties to be viable options.
If the inheritance tax initiative is rejected, they would like to restore the status quo.
The matrimonial property situation is as follows:
Overview of matrimonial property situation:
