Inheritance and gift tax in the Canton of Lucerne (cross-border guide)

Context

Inheritance and Donation Tax in the Canton of Lucerne

In a nutshell

The law on inheritance and gift taxes in the Canton of Lucerne provides for different rates according to the degree of kinship between beneficiaries and donors. There are exemptions for spouses and descendants.

Inheritance Tax

Inheritance tax in the Canton of Lucerne is governed by the Inheritance and Gift Tax Act of 1 January 2019 (LS 2019). The tax is calculated on the basis of the net value of the inheritance, which is defined as the market value of the net assets of the deceased, net of liabilities. The tax is applied according to the degree of kinship between the deceased and the beneficiaries.

Degree of kinship

• Beneficiaries who are spouses or descendants of the deceased are exempt from inheritance tax. Beneficiaries who are ascendant or collateral to the deceased are subject to a 0.5% rate. Beneficiaries who are not relatives of the deceased are subject to a 1% rate.

Example

Suppose a Lucerne resident leaves an estate of CHF 1,000,000 to his son. In this case, inheritance tax will not be applied, as the child is a descendant of the deceased.

Donation Tax

Donation tax in the Canton of Lucerne is governed by the Inheritance and Gift Tax Act of 1 January 2019 (LS 2019). The tax is calculated based on the net value of the donation, which is defined as the

Operational details

Key facts The law on inheritance and gift taxes in the Canton of Lucerne provides for different rates based on the degree of kinship between beneficiaries and donors. There are exemptions for spouses and descendants. The declaration and deadlines to be respected are specified in the cantonal law. # ## Inheritance and Gift Tax in the Canton of Lucerne The Canton of Lucerne, like other Swiss cantons, has a specific law for inheritance and gift tax. This law provides for different rates depending on the degree of kinship between beneficiaries and donors. This means that if a Swiss citizen residing in the Canton of Lucerne leaves an estate to his relatives, he will have to pay an inheritance tax based on the degree of kinship. Here is a table summarizing the inheritance tax rates in the Canton of Lucerne: | Degree of kinship | Rate | | -- - | -- - | | Spouse | 0% | | Descendants | 0% | | Parents | 5% | | Brothers and sisters | 10% | | Uncles and grandchildren | 15% | | Other relatives | 20% | As can be seen, spouses and descendants are exempt from inheritance tax, while other relatives are subject to different rates based on the degree of kinship. # ## Concrete examples Here are some concrete examples of how inheritance tax works in the Canton of Lucerne: A Swiss citizen living in Lucerne leaves a heritage of 500,000 Swiss francs to his parents. According to the table above, the tax of Here is an operational checklist to help manage inheritance tax: # # # Tips for further reading For more information on inheritance tax in the Canton of Lucerne, please refer to the law published on the Canton of Lucerne website. In addition, you can refer to tax returns and inheritance statements for previous years to better understand how inheritance tax works.

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Key points

Procedure

• To make the declaration, you must consult the cantonal law on inheritance and gift taxes. The cantonal law on inheritance and gift taxes in the Canton of Lucerne is regulated by the law of 25 February 2008. * The terms to be respected are specified in the cantonal law. It is important to note that the deadlines for the declaration may vary depending on the specific situation.

Deadline for declaration

• The deadline for the declaration is generally 3 years from the date of the subject's death or the date of the donation. * It is important to consult the cantonal law to determine the exact deadline for the declaration.

Inheritance and Donation Tax

• The inheritance and gift tax in the Canton of Lucerne is calculated on the basis of the value of the inheritance or donation. * The value of the estate or gift is determined based on the present value of the subject's assets.

Concrete examples

• If a subject leaves an estate of CHF 500,000 to the child, the inheritance tax will be calculated based on the present value of the estate. * If a person donates an estate of CHF 200,000 to a grandchild, the gift tax will be calculated based on the present value of the estate.

Regulations

• The cantonal law on inheritance and gift taxes in the Canton of Lucerne is regulated by the law of 25 February 2008. * Inheritance and gift tax is

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