Bern Inheritance Tax Planning
Last updated: 26 Oct 2025 • Author: Alexander Foelsche CPA (US), WP (DE), RE (CH)
Bern Inheritance Tax — Planning Guide
Practical strategies to reduce, defer, and fund Canton Bern inheritance tax. Coordinate ZGB succession rules with Bern’s heir-class reliefs, focus on who receives (exempt vs. taxable), what is situated in Bern, how deductions and documents are assembled, and when cash is available for payment.
Top planning moves (at a glance)
Design bequests & beneficiary mix
- Exempt channels: Prioritize spouse/registered partner and (where exempt) direct descendants to minimize tax.
- Targeted legacies: Route specific assets to beneficiaries with relief; use substitute legacies to keep taxable classes small.
- Disclaimer pathways: Add disclaimer language to pivot shares post-mortem if values or needs change.
Manage situs & cross-border exposure
- Nonresidents: Reduce Bern-situs holdings (esp. real/tangible) or pair them with offsetting debts/expenses.
- Business situs guardrails: Keep management/records of intangibles outside Bern to avoid a Bern business situs.
- Ancillary probate readiness: Prepare for Bern filings limited to Bern-situs assets; line up appraisals early.
Common structures
| Tool | Primary goal | Practice notes |
|---|---|---|
| Marital/partner bequests | Leverage exemption/relief at first death | Coordinate matrimonial property regime with the will/contract; ensure documentary proof of status. |
| Credit-shelter style allocations | Preserve growth for exempt heirs | Direct appreciating assets to exempt channels; give cash or relieved assets to taxable classes. |
| Charitable bequests | Reduce the taxable base | Confirm charity eligibility; maintain statutes, confirmations, and valuation for gifted assets. |
| Lifetime gifts | Shift future appreciation | Screen for cantonal gift-tax interaction and look-back; document situs to avoid inadvertent Bern nexus. |
| Usufruct/retained-rights planning | Balance control and relief | Model economic value of rights vs. bare ownership; align with heirs’ class reliefs and cash needs. |
| Insurance for liquidity | Fund payment at assessment | Consider policy ownership/beneficiary design to meet due dates without fire-sales. |
Nonresident & cross-border planning
- Asset location: Prefer non-Bern intangibles for taxable heirs; if holding Bern real/tangibles, consider pre-death restructuring or directing these to exempt heirs.
- Debt allocation: Match mortgages/secured debts to Bern real estate to reduce the Bern base.
- Evidence: Keep land-registry extracts, storage/mooring records, and management-location proof to support situs and deductions.
See the Nonresident Guide for definitions, examples, and a filing checklist.
Valuation, deductions & documentation
Valuation playbook
- Obtain timely appraisals for Bern real estate and significant tangibles as of the date of death.
- Use portfolio/bank statements for financial assets at death; reconcile foreign valuations with Bern filings.
- If a sale is pending, document market conditions at death vs. post-death movements.
Deductions & proof
- Compile enforceable debts, funeral costs, and administration invoices; keep proofs of payment or enforceability.
- Allocate expenses to Bern assets for nonresident computations.
- Maintain civil-status/relationship evidence to substantiate exemptions and reduced rates.
Liquidity & timing
Cash for the assessment
- Set aside liquid accounts or insurance proceeds to meet the assessment due date (often ~30 days).
- Consider provisional/on-account payments to limit interest exposure.
Transactions & clearances
- Coordinate property sales with appraisal timing; factor the authority’s review period.
- Plan for a tax clearance certificate for land registry/banks after payment.
Suggested planning workflow
- Map heirs & classes under ZGB (spouse/partner, descendants, other relatives, unrelated).
- Inventory & allocate Bern-situs vs. non-Bern assets; match debts to Bern real estate where sensible.
- Model scenarios with the Bern calculator—test exempt channels, charitable legs, and taxable shares.
- Draft documents (will/inheritance contract, beneficiary designations, disclaimers) reflecting situs and liquidity objectives.
- Assemble proofs (appraisals, invoices, civil-status documents) and set review triggers for life events and law/practice changes.
FAQs
Does a living trust avoid Bern inheritance tax?
No. It may streamline administration, but tax is based on the taxable transfer to each beneficiary under cantonal rules and ZGB heirship, not on probate formalities.
What’s the simplest lever to lower exposure?
Route value to exempt heirs (spouse/registered partner and often direct descendants), document deductions well, and manage situs for nonresidents.
How do I handle a pending sale of Bern property?
Synchronize appraisals and the filing; line up liquidity for payment and request tax clearance after assessment to keep closing timelines.