What is a legacy? Meaning, differences and examples

What is a legacy in Swiss inheritance law? How does it differ from an inheritance or a gift? And how can you use it to support people or organisations that are close to your heart?

You may have already thought about what should happen to your assets after you die. You may want to provide for your family, leave something to a loved one, or support a charitable organisation.

A legacy makes exactly that possible. You decide who is to receive a specific sum of money, item, or other asset from your estate.

In this article, you will learn what a legacy means, how it works in Switzerland, and how to include one in your will.

What is a legacy?

A legacy is a gift that you leave to a person or organisation after your death, without appointing them as an heir.

A simple example: You want to leave your niece CHF 5,000. Or you want to support a charitable organisation with CHF 10,000. You can arrange both through a legacy in your will.

Three things are important:

• You decide who receives the legacy.

• You determine what the person or organisation is to receive.

• The beneficiary does not automatically become part of the community of heirs.

Anyone who receives a legacy has a legal claim to the specified gift. This claim is generally directed against the heirs.

Where does the word legacy come from?

The word «legacy» comes from the Latin «legatum». It refers to a testamentary gift.

In Swiss inheritance law, legacy is used synonymously with bequest.

The word also has other meanings. In ancient Roman law, it already referred to a form of testamentary gift. In the Catholic Church, on the other hand, a papal legate is a representative of the Pope.

When people in Switzerland speak of a legacy in a will today, they mean a bequest.

Legacy and bequest: Is there a difference?

No. In Swiss inheritance law, legacy and bequest mean the same thing.

You may also come across the term legatee when planning your estate. It refers to the person who receives a legacy. The legal term for this is beneficiary or legatee.

You can find more about this at DeinAdieu: What is a bequest?.

Legacy, appointment as an heir, and gift compared

You can pass on assets in various ways. The three most common ways are a legacy, appointment as an heir, or a gift during your lifetime.

Appointment as an heir: Legal succession with rights and duties

When you appoint someone as an heir, you determine who is to inherit your estate or a part of it.

The heirs step into your legal position. In principle, they do not only take over assets, but also existing debts and obligations.

If several people inherit, they together form the so-called community of heirs.

Legacy: Claim to a specific item or sum

A legacy is more targeted. For example, you can stipulate that a friend is to receive a piece of jewellery or an organisation CHF 20,000.

The beneficiary does not thereby acquire the status of an heir. They do not have to participate in the administration and division of the estate and are not personally liable for the debts of the deceased person.

However, the claims of the estate creditors take precedence. A legacy is therefore not independent of how much assets remain after the debts have been settled.

Gift during your lifetime: Today instead of later

With a gift, you pass on part of your assets already during your lifetime.

Perhaps you want to help your godchild with their studies or support an organisation today.

With a gift, the beneficiary can benefit from your support immediately. Depending on the situation, however, gift taxes and inheritance law consequences may arise.

Good to know: You do not have to choose just one way. It is possible to appoint relatives as heirs and at the same time leave a legacy to a charitable organisation.

If you want to prepare your will, you can use the free will template from DeinAdieu via Buy Food with Plastic.

What can you bequeath as a legacy?

A legacy does not have to consist of a large sum of money. In Swiss inheritance law, you can bequeath various assets.

These include:

• Sums of money: For example CHF 2,000, CHF 10,000, CHF 50,000 or more.

• Shares of the estate: A clearly defined percentage share designated as a bequest, for example 5% of the net estate.

• Valuables: Jewellery, works of art, watches or furniture.

• Real estate: A house, an apartment or a plot of land.

• Collections: For example books, coins or art collections.

• Rights: Under certain conditions, also a right of residence or usufruct.

It is important that your wishes are clearly recognisable. Especially with real estate or percentage bequests, a legal review is worthwhile to ensure that the legacy is not confused with an appointment as an heir.

The legacy in Swiss inheritance law

All legal statements in this article refer to Switzerland. The most important provisions are found in the Swiss Civil Code (ZGB), in particular in Articles 484 ff. and 562 ff.

You can include a legacy in a valid will or in an inheritance contract.

In doing so, you must observe the statutory forced heirship shares. For even though you may wish to decide freely who receives something, Swiss law protects certain relatives.

Forced heirship share and free quota: How much can you freely dispose of?

The forced heirship share is the legally protected minimum share of the estate. In Switzerland, descendants as well as spouses and registered partners have a statutory forced heirship claim.

Since the inheritance law revision of January 1, 2023, the forced heirship share is always half of the statutory inheritance claim.

The part of the estate over which you may freely dispose beyond that is called the free quota.

A simplified example:

You leave a net estate of CHF 200,000. You are married and have one child.

In this example, you can freely dispose of CHF 100,000. You could bequeath about CHF 10,000 of this to a charitable organisation.

How large the free quota actually is depends on your family situation. The matrimonial property regime and existing agreements can also influence the calculation.

Formal requirements: Handwritten or publicly certified

In Switzerland, there are two common ways to draw up a will.

1. Holographic will

You write the entire will by hand, add the date and signature, and keep it safe.

A document typed on a computer and only signed is not sufficient for a holographic will.

2. Publicly certified will

You have your will drawn up in the legally prescribed form by a competent notary and two witnesses.

This option can be particularly useful if you own real estate, want to include several heirs, or if your family situation is complex.

When is a legacy reduced?

A legacy may be reduced if it violates the forced heirship shares of protected heirs.

Even if the estate is insufficient to cover all debts and bequests, a legacy cannot always be fully satisfied.

If forced heirship shares are violated, the entitled persons may demand a reduction. The reduction does not always occur automatically.

When does a legacy become due?

Under Swiss law, the claim to a bequest generally arises upon the death of the person who arranged it.

According to Article 562 ZGB, the claim normally becomes due as soon as the burdened heirs have accepted the inheritance or can no longer reject it. The will may provide otherwise.

This does not mean, however, that a legacy is paid out immediately. First, the estate must often be clarified, debts identified, and necessary documents reviewed.

Depending on the situation, this can take several months or longer.

Can you change or revoke a legacy?

Yes. You can generally change or revoke a legacy in an ordinary will at any time as long as you have mental capacity and comply with the statutory formal requirements.

You can therefore later decide to bequeath a different sum or to include a different person or organisation.

It may be different with an inheritance contract. This is legally more binding and cannot be unilaterally changed without further justification.

How to formulate a legacy in a will

A well-formulated legacy should leave as little room for misunderstanding as possible.

The following details are important:

1. Who draws up the will?

2. What is to be bequeathed?

3. Who is to receive the legacy?

4. Is there a specific purpose or condition?

Example wording for a sum of money

«I bequeath to the association Buy Food with Plastic, Zurich, UID CHE-340.289.328, as a bequest within the meaning of Art. 484 ff. ZGB, the sum of CHF 10,000 from my estate.»

This makes it clear that the organisation is to receive a specific sum of money and is not appointed as an heir.

Example wording for an item or piece of real estate

For an item, the wording could be as follows:

«I bequeath to my niece [full name, date of birth] as a bequest within the meaning of Art. 484 ff. ZGB my gold watch of the brand [brand, model], which is in my possession.»

For a piece of real estate, the exact property designation, land register details, and existing encumbrances should be taken into account. In this case, the support of a professional is recommended.

Correctly identifying an organisation: name, registered office, and UID

If you want to benefit a charitable organisation, you should identify it clearly.

For Buy Food with Plastic, you can use the following details:

Buy Food with Plastic

Legal form: Association
Registered office: Zurich, Switzerland
Address: Feldstrasse 42, 8004 Zurich
UID: CHE-340.289.328

The UID is the unique company identification number in Switzerland. It helps to identify the organisation beyond doubt.

Common mistakes that lead to disputes

1. Unclear wording: It is not clear whether a legacy or an appointment as an heir is intended.

2. Failure to observe forced heirship shares: The will infringes on legally protected claims.

3. Failure to clearly identify the beneficiary: The name or details of the organisation are missing.

4. Unclear description of items: It cannot be determined which item is intended.

5. Failure to comply with formal requirements: The holographic will is not entirely handwritten.

6. Setting overly rigid conditions: A specific purpose may no longer be possible to fulfil later.

Good preparation can help avoid such uncertainties.

A legacy to a charitable organisation

If you are already thinking about including an organisation in your estate, you will find the next steps and a free will template on our testamentary giving page.

With a legacy, you can not only support people you know personally. You can also pass on values that are particularly important to you.

Perhaps environmental protection is close to your heart. Perhaps you want to support people living in difficult conditions. Or you wish your assets to have a positive impact beyond your own life.

With a testamentary gift, you can make exactly that possible.

Fight hunger and plastic pollution at the same time

At Buy Food with Plastic, we combine two challenges that at first glance have little to do with each other: poverty and plastic pollution.

In Nicaragua, Ghana, and India, people can exchange collected plastic for hot meals or income.

At the same time, our local teams build recycling structures, create jobs, and pass on environmental knowledge to children and young people.

This gives your support a double impact: it helps people and protects our environment.

A legacy can help make this work possible in the long term. It supports not only individual meals, but also structures that will last for many years.

You can help decide what your legacy is used for

Perhaps our work in Ghana is particularly important to you. Perhaps you want to support recycling projects in Nicaragua or help more schools in India gain access to environmental education.

In principle, you can specify a purpose for your legacy.

However, we recommend that you do not formulate it too narrowly. Many years may pass between drawing up a will and its later implementation. Projects change, and new needs arise.

A more general wording such as «for the charitable projects of Buy Food with Plastic» enables us to use the funds where they are most urgently needed at the time.

If a particular country or project is especially important to you, we are happy to discuss it with you in advance.

Taxes: What applies to a tax-exempt organisation?

In Switzerland, inheritance and gift taxes are regulated at the cantonal level.

Many cantons provide tax exemptions for recognised charitable organisations.

Buy Food with Plastic is a charitable and tax-exempt association with its registered office in Zurich. In the canton of Zurich, our tax exemption also covers inheritance and gift taxes.

If the estate comes from another canton, its regulations and possible countervailing provisions may be relevant.

Therefore, the tax treatment of a specific legacy should be reviewed in advance.

How does a legacy work at Buy Food with Plastic?

Step 1: Find out

You can take your time to consider the topic of wills and bequests. You will find further information on our testamentary giving page.

Step 2: Record your wishes

You draw up a legally valid will or adapt your existing will. You can include us as a beneficiary.

Step 3: Speak to us, if you wish

You can inform us about your wishes during your lifetime. This is voluntary. You do not have to show us your will or commit yourself to us in any way.

Step 4: The responsible authority informs us

After you pass away, your will is opened. If Buy Food with Plastic is named as a beneficiary, we will be informed as part of the probate process.

Step 5: Your legacy takes effect

Once the legal requirements are met and the legacy has been settled, the funds can be used for our non-profit work.

In this way, a personal wish can create a lasting impact.

FAQ: Frequently Asked Questions About Legacies

What exactly is a legacy?

A legacy is a gift that you leave to a person or organization after you pass away. It is specified in a will or inheritance contract. The beneficiary receives a specific asset but does not automatically become an heir.

What is the difference between a legacy and an inheritance?

With an inheritance, a person takes over the estate or a share of it, including the associated rights and obligations. With a legacy, they receive a specific claim without becoming a member of the community of heirs.

What is a legatee?

A legatee is a person who benefits from a legacy. The term means the same as a beneficiary.

Is a legacy worth it even with a small estate?

Yes. A legacy is not tied to a minimum amount. Even CHF 500 or CHF 1,000 can be valuable to a non-profit organization. What matters is that the donation fits your financial and family situation.

Can I specify several legacies in one will?

Yes. You can bequeath different amounts or items to several people or organizations. In doing so, the compulsory portions and the available estate must be taken into account.

What happens if the beneficiary dies before me?

In principle, the legacy lapses if the beneficiary dies before you. However, you can appoint an alternate person or organization to receive the legacy instead.

What happens to the mortgage on a property left as a legacy?

If you bequeath a property with a mortgage, it must be clarified who will cover the existing debt. Transferring ownership does not automatically mean that the beneficiary takes over the personal loan agreement.

Therefore, when it comes to property, it is advisable to clarify the encumbrances and the settlement of the legacy with a professional and, if necessary, the bank.

What happens if an item is no longer available at the time of death?

If a specifically designated item is no longer part of the estate at the time of your death, the legacy generally lapses. However, the will can provide for an alternative arrangement in certain cases.

Do I need to go to a notary for a legacy?

No, not necessarily. A completely handwritten, dated, and signed will can be legally valid in Switzerland.

However, for complex financial circumstances or special wishes, a notary or legal consultation is recommended.

How long does it take for a legacy to be paid out?

There is no general deadline after which every legacy must be paid out within a certain number of days.

The legal claim normally becomes due as soon as the burdened heirs have accepted the inheritance or can no longer reject it. The actual payout depends on the probate process and can take several months.

Can a legacy be challenged?

Yes. A legacy can, for example, become the subject of a court dispute due to formal defects or because it violates statutory compulsory portions.

This is why it is worth writing the will clearly and legally correctly.

Does a non-profit organization pay inheritance tax on a legacy?

This depends on the responsible canton and the tax recognition of the organization.

Buy Food with Plastic is also exempt from inheritance and gift tax in the canton of Zurich. For legacies involving other cantons, the tax situation should be clarified individually.

Talk to us about your legacy

A will is a very personal decision. It is about what is important to you in life and what you want to pass on.

If you are considering including Buy Food with Plastic in your will, we would be happy to hear from you.

We are happy to tell you more about our work, answer your questions, and show you how your legacy can make a lasting impact.

You do not enter into any obligation by doing so. An initial conversation is, of course, free, non-binding, and confidential.

Buy Food with Plastic
Feldstrasse 42
8004 Zurich
Telephone: +41 44 203 54 35
Email: contact@buyfoodwithplastic.org

Learn more about our testamentary gifts

Contact us

Your values can live on. And create new opportunities for other people.

Further Information

• Swiss Civil Code (ZGB), in particular Art. 470 ff., 484 ff. and 562 ff.

• DeinAdieu – What is a legacy (legat)?

• Federal Tax Administration – Inheritance and gift taxes

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Legal Notice: This post is for general information about Swiss inheritance law. It does not replace individual legal or tax advice. If you have questions about compulsory portions, property, inheritance contracts, or complex probate situations, we recommend seeking advice from a qualified professional.