How to leave money to a charity or foundation in Switzerland?

In Switzerland, individuals can freely allocate portions of their estate to charitable organizations, NGOs, and non-profit foundations through a last will and testament. You can accomplish this either by granting a specific legacy (Vermächtnis / Legs under Art. 484 of the Swiss Civil Code - SCC) or by designating the charity as an appointed heir to a fraction of the estate (Art. 483 SCC). Under the revised Swiss inheritance law enacted in 2023, testators enjoy greater flexibility thanks to an expanded disposable quota, since forced shares for descendants have been reduced to 50% and parental forced shares have been completely abolished.

From a tax perspective, leaving assets to tax-exempt non-profit organizations headquartered in Switzerland is highly advantageous. In virtually all Swiss cantons, donations and testamentary bequests to recognized public-benefit institutions are 100% exempt from cantonal inheritance and gift taxes, ensuring your philanthropic gift delivers maximum impact.

1. Specific Legacy (Art. 484 SCC) vs. Co-Heir Institution (Art. 483 SCC)

When incorporating a foundation or charity into your Swiss estate plan, you must choose between two distinct legal mechanisms:

• Specific Bequest / Legacy (Vermächtnis): You bequeath a fixed monetary sum (e.g., CHF 25,000) or specific property (shares, art, real estate). The foundation becomes a creditor of the estate with a claim against the heirs, but it does not join the community of heirs and bears zero liability for estate debts. This is by far the cleanest and most common approach.
• Appointed Heir (Erbeinsetzung): You name the organization as a fractional heir (e.g., 30% of total estate assets). The charity becomes a full member of the undivided estate, shares joint liability for liabilities, and must participate in unanimous division contracts.

2. Identifying the Charitable Entity Accurately

To avoid probate delays or disputes, you must explicitly identify the charity in your handwritten will. State the organization's full legal name as recorded in the Swiss Commercial Register (Handelsregister), its UID enterprise identification number, and its registered headquarters address.

Alongside a will, setting up a Swiss Advance Healthcare Directive ensures your medical wishes are respected in incapacity scenarios, while a General Power of Attorney allows a trusted person to handle financial matters. If you have outstanding private loans, documenting them with a formal Acknowledgment of Debt prevents disputes during estate inventory.

3. Step-by-Step Instructions

1. Step 1: Calculate the Disposable Portion: Ensure that mandatory forced shares for children or spouse are fully preserved.
2. Step 2: Obtain Official Charity Details: Collect the official commercial register name and UID number of the intended charity.
3. Step 3: Write Entirely by Hand: As required by Art. 505 SCC, write out the text by hand from start to finish, including the exact date (day, month, year) and signature.

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