New Inheritance Rules Coming Soon: Sibling Reserved Share Removed, Experts Warn Assets Still Divided If 'One Thing' Is Forgotten

To align with modern family lifestyles and respect testamentary freedom, Taiwan's Legislative Yuan passed a third-reading revision to Article 1223 of the Civil Code yesterday (28th), officially removing the 'reserved share for siblings.' The new system will take effect six months after promulgation.

Experts point out that disputes among siblings over reserved shares have frequently led to court cases in the past. This amendment significantly increases the flexibility for testators to arrange their assets freely. However, accountants issue a strong warning: removing the reserved share does not mean siblings completely lose inheritance rights. If a 'valid will is not established,' assets will still be legally inherited by siblings under statutory inheritance rules.

Legislative Yuan passes removal of 'sibling reserved share'—major impact on childless couples and unmarried individuals

Experts warn: forgetting 'one thing' means assets may still be divided

Under the current Civil Code Article 1223, a sibling’s reserved share is one-third of their statutory inheritance portion. Media reports have often highlighted cases where even estranged or non-cohabiting siblings contested inheritances and ended up in court due to the reserved share provision, disrupting asset succession planning.

Fewer inheritance disputes heading to court! Civil Code amendment respects testamentary freedom, new rules effective in six months

The Legislative Yuan passed the deletion of this clause yesterday. The new system will officially take effect six months after promulgation. According to reports from Central News Agency, Wang Jui-hung, Head of Family Office Services at Deloitte Taiwan, analyzed that this amendment greatly enhances the flexibility for testators to distribute assets via wills. Cases where succession plans were previously hindered by siblings’ reserved shares are expected to significantly improve.

Experts highlight a critical blind spot: siblings remain 'third-order heirs'—without a will, assets will still be divided

Does this amendment mean siblings can no longer inherit? Li Nan-han, CPA at PwC Taiwan’s Family Business and Wealth Succession Services, emphasizes that while the amendment strengthens testamentary freedom, siblings’ status as third-order statutory heirs remains unchanged.

Li warns that if the deceased leaves no will, the estate will still be distributed according to statutory inheritance order and shares, meaning siblings may still legally inherit. Therefore, this legal change profoundly affects high-net-worth individuals, childless couples, unmarried individuals, and family business succession, urging them to promptly review and re-plan their wills and asset structures.

Will validity is key! Experts offer 4 succession planning recommendations

Wang Jui-hung further explains that while testamentary freedom has expanded, the 'formal and substantive validity of a will' remains crucial to the success of any plan. If a will is deemed invalid due to missing formal requirements, the estate will revert to statutory inheritance under the Civil Code.

For affected groups, experts recommend promptly consulting professional advisors to review the following four key points:

- Review your will: Those who already have a will should verify its content aligns with the latest laws. Those without a will should begin planning immediately. - Family business share arrangements: Assess whether share succession is affected by the new rules and make adjustments as needed. - Trust and succession structure design: Use tools like trusts to strengthen control over assets. - Cross-generational wealth transfer strategies: Ensure asset distribution fully reflects the testator’s true intentions.