Vadim and Nathalie’s marriage ended after 20 years. Their older son was 19, and the younger almost 17. Vadim moved out of the family home and soon began living with his new girlfriend. The divorce proceeded smoothly. Vadim and Nathalie agreed amicably and fairly on the division of assets, avoiding costly legal fees. However, what worked seamlessly for their finances did not extend to their children.

Nathalie insisted that the boys continue adhering to the household rules and responsibilities as before, while Vadim allowed them almost complete freedom. This created a difficult situation where communication between the parents ceased entirely – a situation the boys exploited to their advantage.

Vadim soon found a new partner and planned to move in with her. Not wanting to live in a rental property, he decided they would buy a home together. Since his partner also had children from a previous relationship, Vadim wanted to ensure mutual financial security. Marriage was not an option he considered, leading to the idea of asking all his children to renounce their inheritance. This would allow him and his girlfriend to safeguard each other’s interests without the need for a wedding.

The only issue was that the younger son was not yet of legal age. Vadim had to wait until his 18th birthday. Fearing that Nathalie might find out about his plan and dissuade the boys, Vadim became an exceptionally generous father and asked them not to inform their mother. His strategy worked. Five days after the younger son turned 18, all the children signed the inheritance renunciation at the notary’s office. A large celebration followed, and the boys quickly forgot about the matter, as their daily lives remained unchanged.

Over time, however, the relationship between Vadim and his sons grew noticeably strained. During their further education, the boys realized they had not fully understood the implications of their actions at the time. Years later, they finally told their mother, who was appalled.

It wasn’t just about Vadim’s wealth and the apartment but also about the potential inheritance from their paternal grandparents – something that hadn’t been discussed when the waiver was signed.

Furthermore, renouncing an inheritance can impact future eligibility for supplementary benefits. Wealth renunciation does not expire but is instead reduced by 10,000 CHF annually. This detail should be carefully considered during estate planning. The fact that the notary did not mention this to the young adults at the time is puzzling.

According to Article 11, Paragraph 1(g) of the Swiss Supplementary Benefits Act (ELG), income and assets that have been waived are factored into the calculation of supplementary benefits. This rule is in place to prevent abuse; claimants should not give away assets or forgo income at the expense of social insurance. Any renunciation must be declared on the application form and cross-checked with previous tax records.

At 18, the annual reduction of 10,000 CHF may render the renunciation irrelevant by the time one reaches old age – unless an earlier need for supplementary benefits arises.