1. Swiss-UK cross-border Estate Planning David Wallace Wilson FOSSUK Retirement and Estate Planning

2. FOSSUK: Swiss cross-border Estate Planning10 September 2015 Page 2/8 Swiss Cross-Border Estates Principles Switzerland Basis1 law to governs entire estate Connecting factorDomicile in the civil sense Law governing the estateAs per the conflict rules of the country of the deceased’s last domicile Specific international treaties5 (old) treaties, including 1 with UK Recognition of foreign acts…Very liberal …especially of foreign willsParty to the 1961 Hague Convention on the Conflict of Laws relating to the Form of Testamentary Dispositions EU Succession Regulation’s impact on CH-UK matters? None as: UK opted out (§82) Intl treaties remain in force (§73)

3. FOSSUK: Swiss cross-border Estate Planning10 September 2015 Page 3/8 When Swiss Succession Law applies Switzerland Matrimonial regimeTo be liquidated before one can handle the estate! Forced heirship regimeYes … butnot part of Swiss public policy … and limits thereto: 1. Opt-out / professio jurisPossible, in favour of one’s law of citizenship(s) 2. Succession pactPossible, among forced heirs

4. FOSSUK: Swiss cross-border Estate Planning10 September 2015 Page 4/8 Swiss Inheritance Taxation IHTLevied at the cantonal level only (Federal 20% initiative rejected in ‘15!) Scope of application1. Deceased domiciled in Switz. 2. Real estate situated in Switz. Tax-free allowancesYes, varies per canton Progressive ratesYes, varies per canton: 0-15% for spouse & descendants 20-50% for third parties Additional tax benefits?Yes, if CH resident on the forfait / lump- sum tax basis

5. FOSSUK: Swiss cross-border Estate Planning10 September 2015 Page 5/8 Double Death Tax Treaties Swiss networkAustria, Denmark, Finland, Germany, Netherlands, Sweden, UK, United States of America EU Succession Regulation’s impact on CH-UK matters? No, as taxation out of scope (§10)

6. FOSSUK: Swiss cross-border Estate Planning10 September 2015 Page 6/8 Double Death Tax Treaties Swiss-UK Procedure for Movable Assets

7. FOSSUK: Swiss cross-border Estate Planning10 September 2015 Page 7/8 Pensions Swiss-UK overview >Free Movement of Persons Agreement CH-EU of 1999 >Effect of 9 th February 2014 vote? >Coordination of the social security systems (art.8 ACT and Appendix II) >“The coordination rules must guarantee that persons moving within the Community and their dependants and survivors retain the rights and the advantages acquired and in the course of being acquired.” (§13 EC Regulation 883/2004) >CH->UK: Restriction to the cash payment from the Swiss pension fund if one continues to be compulsorily insured against the risks of old age, death and disability in another EC country (art. 25f LFLP) >UK->CH: CERN Pension Fund recognised as QROPS

8. FOSSUK: Swiss cross-border Estate Planning10 September 2015 Page 8/8 David Wilson david.wilson@swlegal.ch Schellenberg Wittmer Ltd / Attorneys at Law 15bis, rue des Alpes / P.O. Box 2088 / 1211 Geneva 1 / Switzerland T +41 22 707 8000 / F +41 22 707 8001 www.swlegal.ch Thank you for your attention. GENEVA / ZURICH / SINGAPORE