New inheritance law: Savings from the tax-exempt pillar 3a pension plan do not form part of the inheritance estate

The revised Occupational Pensions Act specifies that the tax-privileged pension assets saved in 3a foundations by banks and insurance companies do not form part of the estate of the pensioner. It is paid out directly to the beneficiaries, but falls under the possible reduction in the event of a breach of the compulsory portion.

A reduction means that if the testator has violated compulsory portions with his will or the inheritance contract, it violates the mandatory law. In such cases, the heirs whose compulsory portions have not been respected may file a reduction action with the court. If the action for reduction is successful, the heirs who have received “too much” must reimburse the person who has violated the compulsory portion for the difference up to the amount of the compulsory portion.