Nonresident decedent with Lucerne apartment — scope of LU tax

Holding (concise): Lucerne inheritance tax applies to LU-situs immovable property held by a nonresident at death. Intangible assets and out-of-canton movables are outside LU scope absent a specific connecting factor.

Reasoning: Swiss inter-cantonal principles assign immovable property to the place where it is located; double taxation is prevented by exclusive allocation of real estate to situs.

Practice point: File a LU inheritance return limited to LU property. Coordinate foreign estate/inheritance filings and claim relief to avoid double taxation.

Use in filings: Support LU-only valuation, debt allocation limited to LU mortgage, and exclude non-LU intangibles from the LU base.

Fair market value and deductions — timing alignment

Holding (concise): Primary valuation date is the date of death; post-death price swings are disregarded unless expressly provided by law or guidance.

Reasoning: The tax base reflects wealth transfer at the moment of death; post-mortem events do not retroactively change the taxable value.

Practice point: Obtain an independent appraisal effective on the date of death; document any LU-allocable debts (e.g., mortgage balances) as of that date.

Use in filings: Anchor all comparables and rent multipliers to the valuation date; attach appraisal and lender statements.

Relationship-based exemptions — proof requirements

Holding (concise): Beneficiary relationship determines rate class and exemptions; documentation of the relationship is required for favorable treatment.

Reasoning: Cantonal statutes tie rates/exemptions to kinship levels; the taxpayer bears the burden of proof.

Practice point: Provide civil status records (marriage/birth certificates) and translated documents if issued abroad.

Use in filings: Include certified copies with the initial submission to avoid reassessment or delay.

Functional allocation to Lucerne permanent establishment

Holding (concise): Assets functionally tied to a Lucerne fixed facility may be allocated to LU for inheritance tax purposes even if legal title sits elsewhere.

Reasoning: Substance-over-form allocation avoids gaps where an operating nexus exists in LU.

Practice point: Prepare an allocation schedule showing asset use, books, and location evidence; reconcile with other cantons/countries.

Use in filings: Attach facility lease, asset ledgers, and photos; explain methodology for apportionment.

Deadlines, extension requests, and interest exposure

Holding (concise): The tax office may grant extensions upon timely request; late payment interest generally accrues from the statutory due date.

Reasoning: Administrative practice balances timely assessments with realistic appraisal timelines.

Practice point: File a protective notice and extension request when appraisals or foreign clearances are pending.

Use in filings: Keep the extension grant letter and show progress on valuations to mitigate penalties.

UK estate + Lucerne condo — coordinated relief

Issue: UK-domiciled decedent holds LU condo; UK IHT applies on worldwide estate; LU taxes LU-situs real estate.

Approach: Value condo at death; allocate LU mortgage; claim foreign/Swiss relief to avoid double tax; align FX and valuation dates.

What to attach: Appraisal (DoD), mortgage statement, UK computation, proof of foreign tax paid/to be paid.

Portfolio shares vs. artwork stored in Lucerne

Issue: Distinguish domicile-tracked intangibles from LU-situs tangibles.

Approach: Exclude shares from LU base; include LU-stored art; provide storage contract/insurance schedule as proof of location.

What to attach: Custody statements, storage/insurance docs, inventory with photos.