Lucerne Inheritance Tax Planning
Last updated: 14 Nov 2025
Lucerne (Luzern) Inheritance & Gift Tax — Planning Guide
Key planning opportunities for transfers involving Canton Lucerne (LU): leverage exemptions, structure beneficiary shares, manage valuations and debts, and coordinate across cantons/borders.
1) Use Exemptions & Beneficiary Design
Prioritise exempt transfers
- Spouse/registered partner and lineal descendants are commonly exempt in Lucerne practice.
- Allocate core assets to exempt heirs when consistent with family goals; push taxable shares toward assets with lower value or higher deductible debt.
Split-bequest & allocation schedules
- Prepare a per-beneficiary allocation schedule distinguishing exempt vs taxable shares before filings.
- When an unrelated or distant relative must inherit, consider pairing with charitable legacies to shrink the taxable pool.
2) Timing: Gifts vs Inheritances
Inter vivos gifts
- Use lifetime gifts to move value early; ensure notarisation where required and keep gift-date valuations.
- For large gifts to non-exempt heirs, combine with debt assumption or charitable offsets.
Domicile & timing sensitivity
- Changing domicile can alter the competent canton for movables; ensure substance (residence, registration, centre of life).
- For expected transactions (sales, refinancing), align the sequence with filing windows and valuation dates.
3) Situs & Nonresident Coordination
Immovables in Lucerne
- Lucerne taxes LU-situs real estate even if the decedent/donor is domiciled elsewhere.
- Movables (cash, securities) typically follow the last domicile; plan parallel assessments and credit/relief where applicable.
Cross-border estates
- For foreign domiciles, expect LU taxation on LU immovables and foreign inheritance taxation on worldwide assets.
- Maintain foreign tax assessments and payment proofs to support Swiss credit claims.
4) Valuation, Debt Linkage & Documentation
Valuation discipline
- Obtain date-of-death (or gift-date) market appraisals acceptable to the canton/Gemeinde.
- For special assets (business, unique art), commission expert opinions and keep working papers.
Debt reduces base — link it
- Document mortgages/liens tied to LU immovables; attach lender statements referencing parcel numbers.
- Allocate administration expenses and sale costs appropriately; keep invoices and bank proofs.
5) Structuring Ideas
Usufruct & remainder
- Grant a usufruct to an exempt spouse/registered partner with remainder to others to reduce the taxable transfer to non-exempt heirs.
Charitable legacies & foundations
- Qualifying public-benefit organisations are typically exempt; strategic legacies can materially reduce taxable shares.
Practical Planning Checklist
- List LU-situs assets (immovables, tangible movables normally kept in LU).
- Classify beneficiaries as exempt vs non-exempt; prepare allocation schedule.
- Collect appraisals and link debts to specific assets.
- Decide gift vs inheritance timing; confirm domicile and evidence.
- Draft or update will/gift deeds reflecting desired structure (usufruct, remainders, charities).
- Calendar filing and payment dates; request extensions ahead of deadlines.
- Consider a pre-filing ruling for complex or high-value cases.
FAQs
Are cohabiting (unregistered) partners exempt in Lucerne?
No. Exemption typically applies to spouses/registered partners and lineal descendants. Cohabiting partners are usually non-exempt.
Should I gift or bequeath Lucerne real estate?
It depends on recipient class, available debt linkage, and valuation trajectory. Gifts allow earlier value fixing; inheritances may be simpler procedurally.
What if appraisals are delayed?
File on time with provisional figures and request an extension; submit full valuations when available.