Overview of Inheritance Order The basic principle of the inheritance system is based on the provisions of the Civil Code. When a person passes away, their estate should be inherited by their legal heirs according to legal provisions. The design of inheritance order ensures that the estate is inherited by those with close blood ties to the deceased, with a clear legal basis for the order of distribution. According to Article 1138 of the Civil Code, in addition to the spouse, the order of inheritance is as follows: the first order includes direct descendants, primarily children and grandchildren. If there are no heirs in the first order, the estate is inherited by the second order, which includes the parents. If neither of these exists, the estate is inherited by siblings and grandparents in sequence.

In the order of inheritance, "direct descendants" are the first order, meaning that the children of the deceased have the priority right of inheritance. If the children die before the inheritance process begins or lose their right to inherit, grandchildren can inherit through "substitution inheritance" as per Article 1140 of the Civil Code, meaning that the grandchildren substitute for the deceased parent and inherit the share of the estate that the parent would have received. The substitution inheritance system ensures that grandchildren can, in some cases, inherit a portion of their grandparents' estate.

It is important to note that grandchildren can only substitute inherit the grandparents' estate if the parents are deceased or have lost their inheritance rights. If the parents are still alive, the grandchildren cannot inherit first and must wait until the parents inherit the estate before the next generation can distribute the property. Therefore, the grandchildren’s inheritance status depends on the parents’ circumstances, which is the key difference between substitution inheritance and statutory inheritance.

Under What Circumstances Can Grandchildren Directly Inherit the Estate?

Whether grandchildren can directly inherit the estate depends on whether the parents lose their inheritance rights or other special situations in different cases. Here are several circumstances in which grandchildren may directly inherit the estate:

Substitution Inheritance

1. If the parents (the children of the deceased) have passed away before the inheritance process begins, grandchildren can substitute for the parents and inherit the estate according to Article 1140 of the Civil Code.

2. Substitution inheritance is limited to "direct descendants," meaning grandchildren substitute for their deceased parents and inherit their grandparents' portion of the estate.

Parents Lose Inheritance Rights

If the grandchildren's parents lose their inheritance rights due to legal reasons, such as those listed in Article 1145 of the Civil Code (e.g., murder of the deceased, fraud, or coercion to establish or revoke a will), the grandchildren can substitute inherit their parents' portion of the estate. (For detailed information: Inheritance | Unfilial Children and Inheritance Restrictions: Loss of Inheritance Rights)

Grandparents Designate Grandchildren as Heirs in a Will

 Although grandchildren do not have priority over children in statutory inheritance, grandparents can establish a will to designate grandchildren as the heirs, directly granting them part or all of the estate. This allows grandchildren to directly inherit the estate without needing to meet substitution inheritance conditions.

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

Parents Waive Inheritance

1. If the grandchildren's parents voluntarily waive their inheritance rights, grandchildren can still substitute for their parents to inherit their share of the estate.

2. When parents waive their inheritance, they must submit a formal waiver of inheritance statement to the court or relevant authorities to allow grandchildren to inherit through substitution.

 How to Ensure Grandchildren Can Successfully Inherit the Estate? T

To ensure that grandchildren can successfully inherit the estate, one option is to arrange a legally valid will. If grandparents wish to leave their estate directly to grandchildren, they should clearly designate the grandchildren as heirs in the will, avoiding any situations grandchildren cannot inherit directly due to the statutory inheritance order. When drafting a will, it is important to follow legal formalities. For instance, a handwritten will must be written, signed, and dated by the testator, while a notarized will must be witnessed by a notary to ensure legal validity. Additionally, the content of the will must comply with the reserved portion provisions of the Civil Code to prevent other legal heirs from claiming a reserved portion, which could affect the grandchildren's share of the estate.

Furthermore, grandparents may consider gifting part of their property to grandchildren during their lifetime. However, this may involve gift tax issues. According to Taiwan's tax laws, gifts exceeding a certain threshold are subject to gift tax, and gifts made within two years before the deceased's death are still considered part of the estate and are subject to the reserved portion. Therefore, if grandparents plan to gift property during their lifetime, proper tax planning is necessary, and consulting a professional legal or financial advisor is recommended to ensure that the gifting process is legal and in line with the family's long-term interests.

To avoid family disputes over wills or gifts, grandparents can communicate with other heirs when drafting a will or making gifts to ensure that all relevant parties understand the grandparents' intent regarding property distribution, reducing the possibility of future disputes. If the family situation is complex or involves significant assets, hiring a professional lawyer to help arrange the inheritance plan is a wise choice. Professional lawyers can provide the most suitable legal advice based on individual cases and ensure that grandchildren inherit their grandparents' estate smoothly under legal protection.

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