Aargau Inheritance Tax Planning
Last updated: 12 Nov 2025
Aargau Inheritance Tax — Planning Guide
How to reduce, defer or avoid the Aargau Erbschaftssteuer within the law: align beneficiaries and exemptions, plan for Aargau real estate, document defensible valuations, coordinate cross-border relief, and secure liquidity for timely payment.
Planning Goals
- Minimize tax by directing bequests toward favored classes (spouse/descendants often enjoy broad relief) and away from high-rate classes where appropriate.
- Control situs exposure for nonresidents and multi-canton families (Aargau real estate is the usual trigger).
- Preserve cash to avoid distressed asset sales and protect businesses or family homes.
- Keep administration simple with clean evidence, valuations and clear executorship mandates.
Key Levers in Aargau
| Lever | Why it matters | Implementation notes |
|---|---|---|
| Beneficiary class/exemptions | Rates/exemptions depend on relationship to decedent. | Re-route bequests to favored classes; use legacies to neutralize high-rate recipients. |
| Timing of transfers | Cantonal rules may treat lifetime gifts differently than inheritances. | Stagger gifts; document donative intent and valuations; monitor look-back concepts. |
| Asset location (situs) | Real estate in Aargau drives nonresident exposure. | Refinance, sell, gift, or restructure ownership considering transfer taxes and economics. |
| Valuation strategy | Tax is driven by value per beneficiary. | Independent appraisals; support discounts for minority/marketability where defensible. |
| Liquidity planning | Avoid penalties/interest and forced sales. | Designate liquid assets or insurance to cover cantonal assessments. |
Lifetime Gifts & Structuring
Gifting to favored classes
Transfers to spouses/descendants are commonly exempt or favored. Lifetime gifts can align the ultimate inheritance with these classes and reduce later tax for remote beneficiaries.
Documentation & look-backs
Use notarial deeds where appropriate, keep bank proofs, and capture gift valuations at the transfer date. Monitor any cantonal look-back/aggregation mechanics around death.
Real Estate in Aargau
- Restructuring options. Consider pre-sale, gifting, or debt-financing; evaluate property transfer taxes, notary/registry fees, and mortgage constraints.
- Primary residence vs. rentals. Different marketability and valuation dynamics; plan for appraisals and potential valuation haircuts for condition/tenancy.
- Nonresidents. Retaining Aargau property keeps Aargau exposure; alternatives include divestment or long-term planning to align with favored heirs.
Business Interests (SMEs, Family Companies)
- Succession structure. Voting/control vs. economic rights; use shareholders’ agreements and buy-sell arrangements.
- Valuation. Independent valuation with cash-flow/market methods; justify discounts for minority/illiquidity where warranted.
- Liquidity. Insurance-funded purchase options or sinking funds to meet tax without impairing operations.
Cross-Border & Nonresident Planning
- Allocate taxing rights. For nonresidents, Aargau typically taxes Aargau-situs assets (real estate, certain tangibles). Align foreign credits and timing to avoid double taxation.
- Will coordination. Separate Swiss situs will for Swiss real estate may speed administration; ensure consistency with main will and forced-heirship rules.
- Entity holding. Corporate wrappers do not always change tax economics; weigh property transfer taxes, look-through risks, and exit costs.
See the dedicated Nonresident Guide for situs rules and examples.
Valuation & Documentation
| Asset | Evidence to prepare | Notes |
|---|---|---|
| Real estate | Independent appraisal, land register extract, mortgage statements, rent rolls | Use reputable valuers; document condition and recent capex. |
| Securities | Broker statements at date of death; corporate actions notes | Record cut-off pricing and FX conversions. |
| Private company | Financials, cap table, appraisal report | Explain discounts and control features. |
| Tangibles | Inventories, expert reports, provenance | Note storage location (situs) within/outside Aargau. |
Liquidity & Financing
Set aside liquidity
Designate cash/securities or arrange credit to match the expected cantonal assessment schedule. Avoid fire-sale of property or core portfolio assets.
Life insurance
Consider death-benefit sizing to cover cantonal tax. Review ownership/beneficiary design to keep proceeds available when needed.
Planning Checklist
| Task | Status | Owner |
|---|---|---|
| Map heirs and beneficiary classes (spouse/descendants/others) | ⬜ | Advisor / Client |
| List Aargau-situs assets (esp. real estate) | ⬜ | Executor / Client |
| Decide on pre-death gifts/restructurings | ⬜ | Advisor / Client |
| Commission appraisals & valuations | ⬜ | Advisor |
| Cross-border coordination & credit mapping | ⬜ | Advisor |
| Liquidity plan (cash/credit/insurance) | ⬜ | Client |
| Draft/update wills & shareholder agreements | ⬜ | Lawyer |
| Organize evidence file for filing | ⬜ | Executor / Advisor |
Common Pitfalls
- Assuming corporate wrappers remove Aargau exposure from underlying real estate without side-effects.
- Under-documented valuations, leading to revisions, interest, or litigation risk.
- Ignoring cross-border timing (foreign credits may require synchronized filings).
- No liquidity plan — forcing quick sales at poor prices.
- Inconsistent wills across jurisdictions causing delays and disputes.
Get planning help — Fixed-fee packages (Sesch TaxRep GmbH) Contact
FAQs
What is the fastest way to reduce Aargau inheritance tax?
Align bequests with favored beneficiary classes (e.g., spouse/descendants where exempt or reduced) and consider lifetime gifts coupled with robust valuations and documentation.
Does selling Aargau property before death always help?
Not always. Weigh property transfer taxes, market timing, and reinvestment risk. A refinance or planned sale after death may be superior.
How do nonresidents avoid double taxation?
Limit Aargau exposure to Aargau-situs assets and coordinate foreign credits/relief. Provide consistent valuations and synchronize filing timelines.
Should I use a company to hold Aargau real estate?
Entity holding changes legal ownership but may not change tax economics; exit costs, transfer taxes and look-through risks must be evaluated case-by-case.
Who can implement the plan?
Sesch TaxRep GmbH (Buchs SG) delivers our Swiss planning and filings; we coordinate with your notary and lawyer.