The Swiss succession pact (Erbvertrag, Article 494 et seq. of the Swiss Civil Code) is a contractual agreement between a future testator and one or more heirs, concluded during the testator's lifetime, whereby the testator commits to making or refraining from certain dispositions in their estate. It is a powerful tool for business succession planning in Switzerland because it allows heirs to waive their hereditary reserve (Pflichtteil) in advance — something impossible under French law.

The most common form in a business succession context is the Erbverzichtsvertrag (renunciation of inheritance pact): one or more heirs, typically the non-successor children, contractually renounce their right to the estate in exchange for an advance payment or a specific allotment. This clears the way for the business successor to receive the company without interference from the hereditary reserve claims of siblings. The pact must be notarised (public deed) to be valid.

In a Franco-Swiss family context, the succession pact applies only to Swiss assets and Swiss-domiciled parties. French residents cannot use this mechanism for their French assets — the French equivalent (Renonciation Anticipée à l'Action en Réduction, RAAR — Articles 929 et seq. of the Civil Code) was introduced in 2006 but is more restricted in scope. Franco-Swiss families often need to structure their succession across both legal systems, requiring coordination between Swiss notaries and French notaries, with independent business valuation as the common thread.

At Hectelion, we value business assets for Swiss succession pacts and Franco-Swiss succession planning in our valuation and structuring mandates.