Order of Inheritance

According to Article 1138 of the Civil Code，the order of succession is designed based on the degree of kinship, while also protecting the spouse's position. Apart from the spouse, the order of succession is as follows:

1. First Order: Direct Lineal Descendants

This includes children and grandchildren. In principle, children inherit first. If a child has died or lost the right to inherit before the commencement of succession, then under Article 1140, the grandchildren may “inherit by substitution,” taking the share their parent would have inherited.

2. Second Order: Parents

If the deceased has no surviving direct lineal descendants, the parents inherit.

3. Third Order: Siblings

In the absence of children, grandchildren, and parents, siblings of the deceased become heirs.

4. Fourth Order: Grandparents

If none of the above heirs exist, then the grandparents inherit.

It is worth noting that the spouse always retains inheritance rights in all orders. For example, if the spouse and children are both in the first order, then under Article 1144，the estate is divided equally between the spouse and the children, ensuring that the estate passes to the closest relatives while protecting the marital family.

Under What Circumstances Can Grandchildren Inherit?？

Inheritance by Substitution

In general, if the deceased person's children (the parents of the grandchildren) are still alive and entitled to inherit, grandchildren cannot bypass their parents to inherit directly from their grandparents. They may only inherit in special circumstances through “substitutional succession,” such as:

1. When the parents lose the right to inherit

   According to Article 1145 of the Civil Code,this includes cases where an heir commits fraud or coercion to make or the deceased's will, or has severely mistreated or insulted the deceased.
   (See detailed explanation：Inheritance | Limitations on Inheritance for Unfilial Children: Loss of Inheritance Rights)

2. When the parents renounce inheritance

   Under Article 1174，if an heir wishes to renounce inheritance, they must submit a written application to the court within three months of knowing of their entitlement. After renunciation, the heir loses the right to inherit and is also exempt from the deceased’s outstanding debts. If the parents renounce their inheritance, the grandchildren may inherit through substitution, receiving the share that would have gone to their parents.

Direct Inheritance by Will – Designating Grandchildren as Beneficiaries

Although grandchildren do not take precedence over children in the statutory order of succession, grandparents may, by making a will, designate grandchildren as beneficiaries, directly bequeathing part or all of their estate to them. In this way, grandchildren may inherit directly without relying on the conditions for substitutional succession.

(See detailed explanation: Inheritance | What is a Bequest? Can a Bequest Override the Reserved Portion?)

How to Ensure Grandchildren Can Successfully Inherit?

In conclusion, the most reliable way to ensure grandchildren can inherit is through the making of a valid will. If grandparents wish to leave property directly to grandchildren, they should clearly designate them as beneficiaries in the will. This avoids complications arising from the statutory order of succession.
When making a will, attention must be paid to its legal form. For example, a holographic will must be handwritten, signed, and dated by the testator. A notarial will must be witnessed by a notary public, ensuring legal validity.
In addition, grandparents may also consider gifting property during their lifetime by transferring ownership directly to grandchildren. However, this may involve gift tax issues. Under Taiwanese tax law, if the value of the gift exceeds a certain threshold, gift tax must be paid. Moreover, property gifted within two years prior to death may still be included in the estate and subject to the rules of the reserved portion. Therefore, if grandparents plan to make lifetime gifts, tax planning and consultation with legal or financial professionals are highly advisable.
To avoid family disputes, it is also recommended that grandparents communicate with other heirs when making a will or giving gifts, ensuring everyone understands their intentions for property distribution. In cases involving complex family relationships or large estates, engaging a professional lawyer is a wise choice. A lawyer can provide tailored legal advice, assist in drafting a comprehensive will, and ensure that grandchildren inherit under full legal protection.

[Continue Reading：Inheritance | How do you write a legal will? How effective is a will?]
 

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