Tax Inheritance – Part 2
In this episode of our Family Office Podcast, Lisa Cornwell talks to Jürg Niederbacher, who leads PwC’s private wealth practice across Switzerland, about the latest practical developments in the Inheritance Initiative. Now that the proposal and the alternatives have been rejected by the two chambers of parliament, what are the chances of a Yes vote later this year?
With a 50% federal inheritance tax, albeit with a CHF 50 million exemption, the initiative would have severe consequences for business-owning families who have wealth tied up in their enterprise. If the new legislation were voted in, their only alternative would be to sell a significant part of their business or hand it over to the state. These families cannot live with a Yes, and many are considering the option of relocating to countries such as Italy, with its attractive lump-sum regime, or the UK. Even with a Federal Council dispatch saying that no tax would be owed retrospectively by those leaving Switzerland, these are not easy decisions to make.
The second of three editions of the podcast devoted to inheritance and succession discusses the likelihood of a Yes to the inheritance initiative, the possible responses, and the usefulness of structures such as trusts.
