Lifetime gift or will: which is the best option?
Introduction
Passing on your estate to your loved ones is an important decision that raises many questions. Two main options are available to you: lifetime gifts or a will. Each responds to different needs and has its own rules.
A gift allows you to immediately transfer part of your assets during your lifetime. You see your loved ones benefit from it and can support this transfer. A will, on the other hand, organises the distribution of your estate after your death, whilst leaving you free to dispose of it until the end.
But how do you choose between these two approaches? The answer depends on several factors: your family situation, your estate planning objectives, the tax implications and the level of control you wish to retain. A gift commits you immediately and irrevocably, whilst a will can be modified at any time.
This article compares in detail the advantages and disadvantages of each option. You will discover the legal, tax and practical aspects, as well as concrete situations to help you make the right choice according to your profile. The objective: to enable you to plan the transfer of your estate with peace of mind.
📌 Summary (TL;DR)
Lifetime gifts and wills respond to different needs in succession planning. A gift offers immediate transfer with potential tax advantages, but it is irrevocable and permanently deprives you of the gifted assets. A will preserves your freedom and your estate until death, but does not offer the same tax optimisations.
The choice depends on your situation: favour a gift to concretely help your loved ones or anticipate taxation, and a will to retain flexibility and security. Both options can also be intelligently combined.
📚 Table of contents
Lifetime gift: principles and operation
A lifetime gift is a legal act by which a person transfers ownership of an asset free of charge and irrevocably to another person. In Switzerland, three main forms exist:
Manual gift: direct handover of movable objects (jewellery, cash)
Movable gift: transfer of securities, bank accounts
Immovable gift: transfer of real estate, requiring a notarial deed
To be valid, the gift must respect the statutory entitlements of descendants and the spouse. Once made, it is generally final: the donor can no longer take back the transferred asset, except for a particular clause provided in the deed.
Will: reminder of essential rules
A will is a document that expresses your last wishes concerning the distribution of your estate after your death. In Switzerland, two main forms are recognised: the holographic will (handwritten) and the authentic will (notarised).
Unlike a gift, a will remains revocable at any time until death. You retain full ownership and use of your assets throughout your life.
Testamentary freedom is however limited by statutory entitlements which protect descendants, the spouse and, in certain cases, parents. Only the disposable portion can be freely allocated.
To learn more about drafting and applicable rules, consult our guide Wills in Switzerland: rules, content and advice for drafting them properly.
Comparison: advantages and disadvantages of each option
Choosing between gift or will depends on your personal situation, your estate planning objectives and your need for financial security. Both tools have distinct characteristics that directly influence your control capacity, applicable taxation and legal protection.
Let us analyse the main differences to help you make an informed choice according to your family and financial context.
Flexibility and control
A gift involves an immediate and final transfer of the asset. Once the deed is signed, you lose ownership and can no longer freely dispose of the gifted asset. This irrevocability can become problematic if your financial situation changes.
A will, on the contrary, offers maximum flexibility. You remain owner of your assets until your death and can modify or cancel your testamentary provisions at any time. This revocability allows you to adapt your succession planning to life changes: birth, divorce, estate evolution.
For people who wish to maintain control over their estate, a will represents a more secure solution.
Taxation and costs
In Switzerland, the taxation of gifts and inheritances varies considerably according to cantons. Most cantons exempt direct descendants (children, grandchildren) and the spouse, whether for a gift or an inheritance.
Some cantons however apply gift taxes different from inheritance taxes. In some cases, giving during one's lifetime can allow tax optimisation, particularly if the canton provides for renewable allowances every 10 years.
Notary fees are generally higher for an immovable gift than for a will. To these costs are added the registration fees in the land register in case of an immovable gift.
For a detailed analysis of inheritance taxation, consult our article Inheritance tax in Switzerland.
Protection of the donor
A gift can put the donor in a situation of financial vulnerability if their needs evolve. To limit this risk, several protection mechanisms exist:
Reservation of usufruct: you transfer ownership but retain the right of use and income from the asset
Conventional return clause: the asset returns to the donor if the beneficiary dies before them
Maintenance clause: the beneficiary undertakes to provide for the donor's needs
A will offers natural protection: you retain the entirety of your estate and can use it according to your needs until your death. No risk of finding yourself destitute.
Legal security and family conflicts
A gift can be contested during succession if it infringes on the statutory entitlements of other heirs. It will then be subject to a succession report: its value will be notionally reintegrated into the succession estate to verify compliance with entitlements. In case of excess, a reduction may be requested.
A will can also be contested, but it has the advantage of offering an overall view of your wishes at the time of death. Heirs have an overview of the desired distribution.
In both cases, coherent and documented succession planning significantly reduces the risks of conflicts. To better understand succession mechanisms, consult our guide Understanding everything about inheritance in Switzerland.
Concrete situations: which option to favour?
The choice between gift and will is not made in abstract terms. It depends on your age, your financial situation, your family relationships and your estate transfer objectives.
Here are recommendations according to the most common profiles and contexts.
When to favour a gift
A lifetime gift is particularly suitable in the following situations:
Helping a child acquire a home: an immediate gift allows you to support a concrete project when the need is real
Transferring a family business: anticipating the transfer allows you to support the takeover and ensure continuity
Tax optimisation: in certain cantons, renewable allowances favour staggered gifts
Stable family relationships: when trust prevails and the risk of conflict is low
In all cases, support from a notary is essential to secure the deed, provide for protection clauses and verify compliance with statutory entitlements.
When to favour a will
A will is recommended when:
You need your estate to live: rental income, capital necessary for retirement
Your family situation is complex: blended family, strained relationships, multiple heirs
You wish to maintain control: possibility of modifying your provisions according to changing circumstances
You want an overall view: coherent distribution of all your assets
A will does not exclude a gift. You can combine both approaches: give certain assets during your lifetime whilst organising the transfer of the rest of your estate by will. This mixed strategy offers flexibility and anticipation.
Can gift and will be combined?
Yes, it is entirely possible to use a mixed strategy: partial gift during one's lifetime supplemented by a will for the rest of the estate.
This approach allows you to benefit from the advantages of both tools: immediately support your loved ones with a targeted gift, whilst retaining control over the rest of your assets.
Be careful however about coherence: your past gifts will be taken into account when settling the succession. Ensure that the whole respects statutory entitlements and does not create an imbalance that could be a source of conflicts. Legal advice is strongly recommended to orchestrate this planning.
Points of attention and mistakes to avoid
Whether you opt for a gift, a will or a combination of both, certain mistakes can compromise your succession planning:
Disguised gift: sale at symbolic price or loan without repayment can be reclassified as a gift with tax consequences
Non-compliance with statutory entitlements: excessive gifts expose you to contestation and reduction during succession
Absence of legal advice: rules vary according to cantons and situations; professional support avoids pitfalls
Gift without protection: not providing for usufruct or a return clause can put you in financial difficulty
Advance planning with a notary or legal adviser allows you to secure your choices, optimise taxation and prevent family conflicts.
Choosing between lifetime gift and will is not a binary decision. Each option responds to different needs: a gift allows an immediate transfer with support for the beneficiary, whilst a will offers flexibility and control until the last moment. Tax aspects, family relationships and your financial situation naturally guide this choice.
In many cases, combining both instruments proves to be the most effective solution. You can transfer certain assets during your lifetime whilst maintaining control of the rest via a will. The essential thing is to anticipate, document your wishes and consult a notary to legally secure your decisions.
Succession planning protects your loved ones from conflicts and uncertainties. To go further in organising your succession, consult our complete guide on wills in Switzerland and discover how to draft a document in accordance with your wishes.
