Sibling Forced Heirship Abolished! Accountant Reveals 5 Tax-Saving Strategies to Ensure Your Wealth Stays in the Right Hands

In response to evolving social structures and declining birthrates, Taiwan's Legislative Yuan passed on July 28, 2026, amendments to Article 1223 of the Civil Code and Article 12 of the Enforcement Act of the Inheritance Chapter, officially abolishing the 'forced heirship rights of siblings' and restructuring the surviving spouse's right to claim residual property distribution (Article 1030-1). This reform relaxes restrictions on testators, significantly enhancing personal autonomy in wealth succession planning. Moving forward, individuals can now more freely designate specific relatives, long-term caregivers, or charitable organizations as beneficiaries in their wills, effectively reducing the risk of family inheritance disputes.

What’s the difference between 'legal inheritance rights' and 'forced heirship' after the sibling forced heirship repeal?

Under the previous Civil Code, even if a testator left all assets to a specific person via will, siblings could still legally claim their 'forced heirship share'—a portion of their statutory inheritance—often sparking family conflicts.

After the amendment, as long as a will is legally valid, siblings can no longer assert rights on the grounds of forced heirship infringement. However, Wang Ruihong, Head of Family Office Services at Deloitte Taiwan, urges the public to clarify the following distinctions:

Abolition of forced heirship rights: Testators can now fully allocate assets to intended beneficiaries through a valid will, and siblings can no longer claim deductions from the estate.

Retention of legal inheritance rights: If a deceased person left no will and there are no first-tier (children/grandchildren) or second-tier (parents) heirs, siblings still retain their 'legal inheritance rights' and may inherit the estate according to law.

Wang Ruihong emphasizes that while the amendment safeguards personal succession autonomy, the key to fulfilling one’s wishes lies in 'establishing a will early and planning properly during one’s lifetime.'

Amendments to the Inheritance and Gift Tax Act: Tax Efficiency and Rights Rebalancing for Spousal Gifts Within 2 Years of Death

In addition to the forced heirship reform, the Ministry of Finance has announced proposed amendments to the Inheritance and Gift Tax Act in response to Constitutional Court Judgment No. 11 of 2024 (113 Nian Xian Pan No. 11). Two major changes affect gifts made to spouses and specific relatives within two years of death:

Clearer tax liability allocation: Property gifted to specific relatives within two years of the decedent’s death, when included in the total estate for taxation, will now be taxed proportionally to the recipient. Previously, all heirs bore the tax burden collectively.

Increased deduction for spousal residual property claims: Property gifted to a spouse within two years of death will now be counted as part of the decedent’s existing assets when calculating the 'residual property differential distribution claim.' This measure not only significantly protects the surviving spouse’s rights but also helps reduce the overall inheritance tax burden.

Wang notes that asset transfers within two years of death are no longer simple gifts—they now impact the total estate value, tax liability, spousal rights, and final asset distribution. These must be considered within a comprehensive planning framework.

Five Tax-Saving Strategies for High-Net-Worth Individuals and Family Businesses

Facing continuous changes in inheritance systems and tax regulations, Wang Ruihong advises high-net-worth individuals and family enterprises to leverage the flexibility of lifetime gifting and integrate trusts, insurance, and family governance mechanisms for early preparation:

1. Establish a legally valid will early: Clearly express your asset distribution intentions and take advantage of the forced heirship reform.

2. Utilize lifetime gifting strategies: Transfer wealth in stages over multiple years while retaining control over assets.

3. Assess the impact of gifts made within two years of death: Carefully calculate tax liabilities and the final rights of heirs.

4. Introduce diversified succession tools: Effectively use trusts, insurance, and family governance mechanisms to strengthen asset protection and business continuity.

5. Consult a professional advisory team: Seek support from legal, tax, and family office experts to create a tailored, comprehensive wealth succession plan.