What happens with advance inheritance if the parents need care later on?

advance inheritance long-term care financing

When parents become in need of care and apply for supplementary benefits (EL), an earlier advance inheritance payment is counted as “fictitious assets” (loss of assets). The EL authority treats the money as if it still existed, minus an amortization of 10,000 CHF per year since the gift. This often results in the EL being cut or denied. In this case, the children must step in as part of the relative support obligation if they have a very high income or wealth.

The EL trap: The fictitious asset (waiver of assets)

In Switzerland, people are entitled to supplementary benefits if their minimal living expenses (including home expenses) are not covered by AHV and pensions. But the EL is not unconditional social assistance — it checks assets extremely strictly.

Why the money is “still there”

From the point of view of the EL body, anyone who gives away their assets or passes them on as an advance inheritance payment is committing an “asset waiver.”

• calculation logic: The Office adds the advance inheritance to the parents' current assets.
• The episode: On paper, parents are considered “too rich” for additional benefits even though their bank account is empty. The home sends the bill anyway, and the parents can't pay it.

The payback rule: Why time saves money

• The good news is: The “flaw” of losing assets fades over time. The law provides that the amount of waiver assets to be credited is reduced annually.
• The Deduction: Since the year of gift, 10,000 CHF may be deducted from the original advance inheritance payment.
• instance: If you received 200,000 CHF as an advance inheritance 15 years ago, the EL office now only charges 50,000 CHF (200,000 - (15 x 10,000)).
• Strategy tip: The earlier an advance inheritance made, the lower is the risk that it will jeopardize parents' care financing years later.

| Years since advance payment | Original amount | Eligible waiver |

|: -: |: -: |: -: |

| 2 years | 200,000 CHF | 180,000 CHF |

| 10 years | 200,000 CHF | 100,000 CHF |

| 20 years | 200,000 CHF | 0 CHF |

The relative support obligation: When do children have to pay?

If the EL is reduced and the parents are unable to pay the difference, the social authorities check whether the children can be asked to pay directly (Art. 328 ZGB).

The high hurdles of the obligation to provide support

In 2026, there are very high income limits for family support. You have to live in “favourable conditions” in order to become obligatory. According to the SKOS guidelines, the limits (taxable income plus wealth consumption) are approximately:

• single people: taxable income starting at around 120,000 CHF.
• married: taxable income starting at around 180,000 CHF.

If you are below that, the state cannot force you to pay home expenses — even if you have received an advance inheritance payment beforehand. However, the gap in care financing then persists, which often leads to a burden within the family.

Strategy with heyloft.ch: Foresighted financial planning

An advance inheritance never be made without taking into account the “worst-case scenario” of need for care. heyloft.ch helps you to price in these risks when buying real estate.

Why technological support helps with inheritance planning

Our system helps you understand the long-term consequences:

• EL simulator: Calculate how much waiver would still be taken into account if your parents were to go home in 5, 10 or 15 years.
• Liquidity check: We check whether your parents still have enough “free” assets after the retirement payment to finance a care period of 2 to 3 years themselves.
• document vault: Securely deposit your donation contract so that the exact date of advance payment (important for amortization\!) can be proven beyond doubt.

Special case: Utilization and right of residence

Parents often donate their house to the children and retain a right of residence or a beneficiary.

• valuation: right of residence reduces the value of the advance payment in the case of a gift, but is assessed in a complex way in the EL calculation.
• risk: A benefit can be counted as income and massively reduce EL claims. Owner due diligence is essential here to avoid falling into a tax and social security trap.

Conclusion: Time is the most important factor

What happens with the advance inheritance case of care? It becomes a “virtual stumbling block” when it comes to supplementary benefits. Although Switzerland protects the subsistence level, it requires that its own assets — including those that have already been given away — be used up first.

In summary, it can be stated that an advance payment is a wonderful tool for interior design or purchase, but should be made as early as possible. The more “10,000 franc steps” that pass before you receive care, the safer your inheritance is. Use heyloft.ch's data power to weatherproof your financing not just for today, but for generations. With the right strategy, your perfect match — with family support and legal protection — is within reach.

glossary

• Abstinence: Assets that were given away without legal obligation or adequate consideration.
• Supplementary benefits (EL): Government support for pensioners whose income is not sufficient for the minimum living costs.
• amortization: The gradual reduction of the chargeable gift value by 10,000 CHF per year.
• Owner due diligence: The careful review of long-term financial risks (e.g. parental care costs) associated with financing a property.