Wild Marriage - Clarify and Protect Yourself

Financially, living in a cohabitation (marriage-like community without marriage) is worthwhile in many cases, as long as you look at it through the lens of ordinary income/wealth tax (so-called marriage penalty) and from the perspective of individual AHV pensions. However, things get literally wild if one does not thoroughly and jointly plan for retirement and mutual security.

Couples who do not want to marry do not receive statutory survivors' benefits and do not automatically inherit, even if the cohabitation has already lasted for decades - but there are several ways to provide for each other well:

Couples who do not wish to marry do not receive legal survivor benefits and do not automatically inherit, even if the cohabitation has lasted for decades - but there are several ways to provide for each other well:

Beneficiary status in inheritance law

  • Last will and testament (e.g. setting up an inheritance, setting legal heirs to the compulsory portion)
  • Inheritance contract (e.g. waiver of inheritance, waiver of compulsory portion)

Important: the minimum rate for inheritance/gift tax in the Canton of FR is around 14% (provided that the couple has lived together for at least 10 years with the same tax domicile).

Beneficiary with the pension fund

  • the couple has lived together for at least five years
  • they are caring for a joint child
  • the deceased had provided substantial support to the partner.

The pension fund may set additional conditions in the regulations. Check which benefits are to be expected in the event of death and what additional precautions you must take. The cohabitation must usually be registered with the pension fund using a form.

Important: Do not confuse this registration with the pension fund with the so-called "registered partnership" (only for same-sex couples), which is equivalent to a married couple in terms of tax and inheritance law.

Bequeathing Pillar 3a assets to your partner

  • Cohabiting partner is appointed as heir/heiress in the will
  • a written declaration of beneficiary must be submitted to the pension fund (insurance company, bank, etc.)

In order to cover further gaps in the pension provision, the conclusion of a death insurance policy in favor of the cohabiting partner can be examined. A cohabitation agreement, for example, regulates cohabitation or a possible separation. And with an advance directive and a living will, you can preserve your self-determination in the event of incapacity and thus ensure that your cohabiting partner, for example, looks after your interests.

We are also happy to support you in planning your pension and financial affairs.

Maria Peduto-Bächler
Maria Peduto-Bächler

Procurator
Head of Team Alternate
Certified Fiduciary, Federal Diploma of Higher Education


T +41 26 492 78 23
mba@core-partner.ch