The assets saved in a pension fund are inheritable
Both second and third pillar pension funds have one major advantage over the state pension: the assets accumulated are inheritable. The heir can choose whether to withdraw the money from the pension fund at once or inherit fund units. Whether and how much income tax the heir will have to pay on the inherited assets depends on that choice.
Income tax is 0%
If the estate is transferred in units to the heir’s pension account or the heir is of retirement age, and the payments are distributed basis on the average life expectancy.
Income tax is 10%
If the heir is of retirement age, and wishes to take out the estate as a lump sum.
Income tax is 20%
If the successor is not of retirement age and wishes to withdraw the inheritance in cash and immediately during the succession, and the inherited fund units are not transferred to his or her personal pension account.
Where can the heir apply?
Contact a notary first.
If you have a notarised succession certificate, submit an application for an inheritance of units at a bank branch of your choice. If there are several heirs, they must all visit the bank branch together.
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