Pillar 3a legacy and beneficiaries in the event of death pursuant to the law of succession and devolution of an estate

What Happens to the Third-Pillar Funds When the Possessor Dies?

The inheritance of your third-pillar funds is largely governed by the law of succession and the order of beneficiaries. The beneficiary in the event of death would be a spouse, partner, descendant, parent, or sibling.

After the possessor's death, the pension account (pillar 3a) is liquidated. The retirement savings are made available to the beneficiaries. The order of beneficiaries is defined by law. Therefore, there is little flexibility for naming certain persons as beneficiaries.

Appointing a specific beneficiary is possible only in certain circumstances

The law states that benefits will be paid out to the following persons:

  1. The spouse or registered partner
  2. The direct descendants or partner if the requirements are met*
  3. The parents
  4. The siblings
  5. The other heirs

This order of beneficiaries can be changed only under certain conditions. It is possible to select at least one beneficiary from the group listed under 2. and define their entitlements precisely. Moreover, the order of beneficiaries for the persons under 3. to 5. can be changed and the respective entitlements can be defined precisely. The individual beneficiary can be communicated to the pension fund. It makes sense to exploit the permissible scope and to make it clear who is entitled to which benefits.

*requirements: natural persons who were largely supported by the decedent, or the person who had a continuous domestic partnership with the decedent in the last five years until his or her death, or who has one or more dependent children from the relationship with the decedent