Inheritance Tax Act (EStG) (ESTG)

1. Inheritances occurring in the Canton of Lucerne are subject to an inheritance tax, unless exceptions are provided by §§ 3 and 11.

2. An inheritance tax is also due on claims from insurance policies that become due in the five years preceding, at, or after the death of the decedent, insofar as they are not subject to income tax.

1. Inheritance taxes are calculated

a. On the immovable property located in the canton and the entire movable property of the deceased, if the deceased had their domicile in the canton or the probate proceedings are initiated in the canton;

b. On the immovable property located in the canton, if the deceased resided elsewhere;

c. On the property distributed within the canton belonging to a canton-residing deceased person who has been officially declared dead.

1. Inheritance taxes shall be levied according to the following scale

a. on what is transferred to the parental line, 6%;

b. on what is transferred to the grandparental line, 15%;

c. on what is transferred to distant or unrelated persons, 20%.

2. These provisions shall also apply to illegitimate blood relatives, provided that they are entitled to inherit.

1. The inheritance tax is the same, whether the estate or a portion thereof passes to the heir or beneficiary by operation of law or through testamentary disposition; the rate of the tax for each individual inheritance share and each individual legacy is determined by the degree of kinship existing between the decedent and the heir or beneficiary.

2. The calculation of the inheritance tax is based on the official estate distribution, and in cases where such distribution does not take place or an estate is left undivided, on the official inventory.

1. If individual heirs receive more than CHF 10,000, the following surcharge shall be applied

1. from CHF 10,001 to CHF 20,000: 10% of the tax amount

2. from CHF 20,001 to CHF 30,000: 20% of the tax amount

3. from CHF 30,001 to CHF 40,000: 30% of the tax amount

4. from CHF 40,001 to CHF 50,000: 40% of the tax amount

5. from CHF 50,001 to CHF 100,000: 50% of the tax amount

6. from CHF 100,001 to CHF 200,000: 60% of the tax amount

7. from CHF 200,001 to CHF 300,000: 70% of the tax amount

8. from CHF 300,001 to CHF 400,000: 80% of the tax amount

9. from CHF 400,001 to CHF 500,000: 90% of the tax amount

10. from CHF 500,000 and more: 100% of the tax amount

1. Donations and advancements received within the last five years preceding the death of the testator, as well as benefits provided by the testator to an heir through an inheritance waiver contract (inheritance transaction), shall be included in the calculation of the inheritance taxable estate.

2. The heirs are jointly and severally liable with and alongside the beneficiary or their legal successor for the payment of this portion of the tax, but only up to the amount of the estate. The right of recourse remains reserved for the paying party.

1. For the determination of the assets liable to inheritance tax, the general rules regarding tax liability shall apply.

1. Inheritance tax also applies to entailments, family foundations, and similar institutions. The inheritance tax is paid each time the entitlement is transferred from one beneficiary to another. The degree of taxation is determined by the relationship between the previous and the new beneficiary.

1. If the credit balance first accrues to someone as a usufructuary, the inheritance tax, subject to any differing dispositions by the testator, must be paid by the owner. The same is due at the commencement of the usufruct and must be deducted from the usufructuary credit balance.

2. However, if the surviving spouse or the surviving registered partner is the usufructuary, the inheritance tax will only be collected when the usufruct ceases.

1. The tax claim becomes due upon the finality of the assessment.

2. After the expiration of the objection period, the tax amount shall bear interest at a rate to be determined by the government council. Objections and administrative court appeals do not suspend the accrual of interest.

3. § 9 paragraph 2 remains reserved.

1. The inheritance tax is to be collected from the estate and credited to the heirs or beneficiaries upon distribution.

2. The authority entrusted with performing the official inventory is responsible for ensuring that the portion of the estate placed under seal covers the amount of the inheritance tax until the latter is paid.

3. For the tax claim including interest, there exists a statutory lien on any real estate affected by the tax, which takes precedence over registered liens without requiring registration in the land registry, starting from the date of the inheritance, but for a maximum duration of two years from the due date.

1. Exemptions from Inheritance Tax

a. Bequests and gifts for public, charitable, ecclesiastical, and poverty relief purposes;

b. Bequests, gifts, usufructs, and annuities from employers to their servants and from employers to their employees, insofar as they do not exceed a capital value of CHF 2000. The amount exceeding this sum is subject to a 6% inheritance tax;

c. Bequests and gifts to accident, health, and pension funds;

d. Inheritance shares, bequests, and gifts not exceeding the amount of CHF 1000, provided the beneficiary does not have a taxable wealth exceeding CHF 10,000 or an income exceeding CHF 4000;

e. * Inheritance shares, bequests, and gifts to the spouse, registered partner, or life partner, provided the latter lived with the deceased person in a marriage-like relationship for at least two years.

2. ...

1. Inheritance taxes, including fines, are allocated 70 percent to the canton and 30 percent to the local municipality that assesses the inheritance taxes (§ 15 para. 1).

2. The tax balance existing at the end of the month must be transferred to the canton within 15 days. A late delivery will incur interest determined by the Council of State.

3. The local municipality responsible for the assessment and collection will receive an assessment and collection commission, as prescribed by the Council of State.

1. Any evasion of the inheritance tax obligation will result in a double assessment of the omitted tax amount.

1. The Municipality Assesses the Inheritance Taxes

a. In the case of § 2 paragraph 1a, at the last residence of the deceased or at the place where the inheritance is opened in the canton,

b. In the case of § 2 paragraph 1b, at the location of the property,

c. In the case of § 2 paragraph 1c, at the last residence in Lucerne of the deceased or, if the deceased had no residence in the canton of Lucerne, at their Lucerne place of origin.

2. The municipality may designate an administrative office to fulfill tasks assigned to it. Several municipalities may designate a joint administrative office.

3. Unless otherwise regulated by this law and the legislative decrees of the municipality, the body responsible for inheritance taxes is the municipal council.

4. An appeal against the assessment by the municipality is permissible pursuant to the Administrative Procedure Act, and an administrative court appeal can be lodged against its decision on the appeal. The Cantonal Court also has discretional oversight.

5. The municipality must also deliver the assessment and appeal decisions to the Cantonal Tax Office. This office is authorized to file an appeal and an administrative court complaint.

6. The deadlines for legal remedies are 30 days.

1. The provisions of the Tax Law dated November 22, 1999, apply mutatis mutandis to the obligation of secrecy, administrative assistance, and cooperation duties of the taxable person, as well as to the certification, information, and reporting obligations of third parties.

1. The Executive Council issues the ordinances necessary for the implementation of this Act.

2. The Tax Department of the Canton administers the enforcement of this Act and exercises direct supervision over inheritance tax matters.

3. It issues the directives and orders necessary for its correct and uniform application. In particular, it regulates the electronic collection and processing of data as well as their exchange with the municipalities and taxpayers, and determines the tax forms.

4. If it issues a preliminary decision, this is binding on the assessment authority.

1. This Act repeals Sections 51-53 of the Finance Act of March 9, 1859, Section 179 Numbers 2-3 of the Education Act of September 26, 1879, and Section 99 of the Education Act of November 29, 1898, as well as the relevant provisions of Section 26 Number 2 and Section 32 Number 2 of the Poor Law of November 21, 1889.

1. This law is to be deposited in its original form in the state archive and - subject to a possible referendum - communicated to the government council for publication and execution.

2. The date of the law's entry into force shall be determined by the government council.