I’ve inherited CHF 200,000—what now?
January 8, 2025
4 min read
arvy's Teaser: You've inherited money. Perhaps CHF 50,000, perhaps CHF 200,000, perhaps more. It's a moment that is simultaneously sad and overwhelming. And suddenly questions arise that you've never had before: What do I do with the money? Do I have to pay taxes? Should I invest everything? Here is a calm, honest roadmap — without pressure, with respect.
0%
Inheritance tax: spouse/children (most cantons)
CHF 7,258
Pillar 3a maximum 2026 — immediately tax-deductible
35%
Typical tax saving on a pension fund buy-in
First: It's okay to do nothing. For now.
An inheritance often arrives in a moment of loss. Nobody expects you to make optimal financial decisions immediately. The money isn't going anywhere. A few weeks or months in a savings account is not a problem. Don't make major decisions under emotional pressure.
But: don't let weeks become years. In a savings account, your money loses purchasing power every day. The right time for a plan is when you're ready — and this article helps you get there.
Step 1: Do I have to pay inheritance tax in Switzerland?
The good news first: in most cantons an inheritance to spouses and children is tax-free. For other beneficiaries (siblings, nieces, non-relatives), rates range from 6–40% depending on the canton and relationship.
Swiss Inheritance Tax 2026 — Canton Overview
Tax-free in almost all cantons: spouse to spouse, parents to children
Particularly favourable: Schwyz (no inheritance tax for anyone), Obwalden, Lucerne
Expensive for non-relatives: Geneva, Vaud, Bern (20–40%)
Important: The inheritance must be declared on your tax return — even if it's tax-free. The new assets are immediately subject to wealth tax.
Step 2: Stock-take — what do you need first?
Debts? Consumer loans, leasing, credit card balances? Pay these off first. No investment beats 8–15% credit card interest.
Emergency fund? Do you have 3–6 months of living costs in cash? If not, build that up first — in an immediately accessible savings account.
Pillar 3a maxed out? If not, do it now. The tax saving is immediately tangible and since 2026 you can make up missed years retroactively.
Pension fund buy-in possible? Check your buy-in potential — often the most tax-efficient use of an inheritance. Every franc is fully deductible.
Mortgage? Direct amortisation worth it? At Swiss mortgage rates of 1.5–2.5%, investing is usually more advantageous — but depends on individual circumstances.
Step 3: The investment plan — how do I invest the rest?
Not all at once — staggered entry
For larger amounts (CHF 100,000+), a staggered entry over 6–12 months is recommended. This reduces the risk of investing everything at the worst moment — and protects your psychology.
Example: CHF 200,000 inheritance, age 55
CHF 7,258 → Max out Pillar 3a (immediate tax saving ~CHF 2,000–2,500)
CHF 20,000 → Pension fund buy-in (tax saving ~CHF 7,000 at 35% marginal rate)
CHF 20,000 → Top up emergency fund (savings account, untouched)
CHF 50,000 → Invest immediately (long-term core, lump sum)
CHF 102,742 → Staggered over 10 months (~CHF 10,274/month)
Immediate tax saving: ~CHF 9,500
Estimated final value after 10 years: ~CHF 310,000 (at 5% p.a. on invested portions)
The 4 most common mistakes after an inheritance
Mistakes that cost tens of thousands
❌ Leaving everything in a savings account — Weeks become years. CHF 200,000 at 1.5% inflation loses CHF 3,000 in purchasing power per year — CHF 30,000 over 10 years.
❌ Acting impulsively — New kitchen, new car, expensive holiday. Treat yourself (5–10% of the inheritance), but invest the rest with a plan.
❌ Trusting the bank that calls — As soon as a large sum arrives, your phone rings. Bank advisors earn from products, not from your wealth building.
❌ Not talking to your partner — An inheritance can create conflicts. Discuss it openly before making any decisions.
"You've inherited from people who worked hard. The best way to honour their legacy: manage it wisely. Not wasted, not hidden — invested so it keeps working for you and your family."
Frequently asked questions about inheritance in Switzerland
How long should I wait before investing an inheritance?
There is no legal waiting period. Once the estate is settled and the money is in your account, you can decide. Emotionally, 4–8 weeks of doing nothing is wise — then make the big decisions planfully.
Is a pension fund buy-in a good use of inheritance money?
In most cases yes — especially with higher income and buy-in potential on your pension statement. Every franc contributed is fully tax-deductible. At CHF 20,000 and a 35% marginal rate: CHF 7,000 in immediate tax savings. Important: no buy-in within 3 years of a planned capital withdrawal.
Should I pay down my mortgage or invest?
At Swiss mortgage rates of 1.5–2.5% (often even lower after tax deductions) and long-term equity returns of 5–7%, investing usually wins. Exception: if affordability is a concern or you're close to retirement.
Do I have to declare an inheritance on my tax return?
Yes — even if it's tax-free. The new wealth must be declared on your wealth tax return. The inheritance itself may be free of inheritance tax (depending on canton and relationship), but wealth tax on the capital applies immediately.
Lump sum or staggered: what's better?
Statistically (Vanguard study), immediate lump sum wins in ~67% of historical periods. But psychologically, staggered entry over 6–12 months is smarter for most — because you won't panic-sell in a crash right after investing. Recommendation: 25–50% immediately, rest staggered.
Let's figure out what's best for you together.
No sales pitch, no product recommendations without context. An honest conversation about your inheritance, your tax situation, and the best plan.
Start savings plan | Open Pillar 3a
Disclaimer: This article is for general information only and does not constitute investment or tax advice. Inheritance tax is regulated at cantonal level and may change. For binding advice, consult a tax advisor or notary. arvy is an asset manager supervised by FINMA.
