From the family holding to the inheritance contract, which structures are the most robust to prepare the transmission of a Swiss SME to the next generation without compromising its sustainability?
1. Anticipate, and anticipate again
A successful transmission starts 10 to 15 years before the effective handover. This time horizon unlocks tax and legal levers (staggered gifts, dismemberments of ownership, inheritance contracts) that haste forecloses. Most of the files we rescue under pressure suffer from a lack of preparation, not from a lack of technical options.
2. Choosing between a family holding and a direct gift
A family holding offers several advantages: centralised control, tax neutrality on intra-group dividends, ease of progressive share transmission. But it adds a layer of governance that does not suit every family. A direct gift of shares remains relevant for simple structures and siblings aligned on strategy.
3. The inheritance contract, an underused tool
Too few families are aware of the inheritance contract, a notarised agreement between the testator and the heirs. Unlike a unilateral will, an inheritance contract binds both parties — a child who waives part of their statutory share, for example, cannot revoke that commitment after the testator's death. Indispensable for blended families or deliberately unequal transmissions.
4. Align governance with wealth
A successful transmission goes beyond the legal transfer of shares: future governance must also be designed. Board of directors, family council, family charter, veto rights on sales… These tools allow capital to be transferred without immediately handing over power, avoiding the classic deadlocks between siblings with divergent views.
5. Approach taxation with clarity
In Geneva, direct-line transmissions (children, spouse) are exempt from inheritance tax. But this exemption does not extend to nieces, non-married partners or indirect heirs, who can face heavy taxation. Careful planning enables strong optimisation, in strict compliance with the legal framework.
Conclusion
Transferring a family business is above all a matter of people and timing — tax and law are the tools, not the goal. The right time to start is today.