Reduction under inheritance law: a brief introduction

When a person dies, they typically leave behind their assets. The assets of the deceased go to the heirs who must receive the compulsory portion to which they are entitled and to the heirs whom the deceased has included in their testamentary disposition.

The provisions on the compulsory portion is unsurprisingly, mandatory. However, it is still possible for the compulsory portion to be violated by a will, marriage or inheritance contract. The heir to the compulsory portion whose compulsory portion has been violated can demand a reduction and, in an emergency, also sue for it.

LEGAL BASIS AND DESCRIPTION

The legal basis for the reduction is regulated in Art. 522 - 536 CC. If the testator infringes the heir’s inheritance, protected by the compulsory portion, by exceeding his or her power of disposal, the heirs who are protected by a compulsory portion may request a reduction of the disposition upon the death of the testator. The purpose of the instrument of reduction is therefore to restore and protect the compulsory portion, whose value has been violated.

WHO CAN CLAIM THE REDUCTION?

All heirs entitled to a compulsory portion who have suffered a violation of the compulsory portion may claim a reduction. The reduction, or the action for reduction with which the reduction claims can be enforced, is brought against the co-heirs. If no reduction action is proposed, the disposition upon the testator’s death is valid and therefore legally binding.

WHAT CAN BE REDUCED?

Dispositions upon death as well as lifetime dispositions may be reduced. Furthermore, inheritance settlements, buy-out sums and gifts are subject to reduction. The testator must have been able to revoke these settlements freely or the gifts must have been made during the last five years before the testator’s death. However, this does not include occasional gifts. In addition, a disposal of assets made with the aim of circumventing the reduction on disposal are also subject to this rule.

EFFECT OF THE REDUCTION

The purpose of the reduction is to be able to pay out the compulsory portion to the heirs whose compulsory portion has been breached. The heirs who received too much according to their portion of the inheritance must compensate difference.

Our attorneys at law in St. Gallen, Zurich and Frauenfeld can happily clarify whether a breach of the compulsory portion has occurred in a specific case and how best to deal with its subsequent compensation.