Taiwan Removes Siblings' Mandatory Inheritance Share, Emphasizing Wills

Taiwan's Legislative Yuan has passed an amendment to the Civil Code, eliminating the mandatory inheritance share for siblings. This significant change, set to take effect six months after its promulgation, aims to bolster testamentary freedom and ensure the deceased's final wishes are respected.

According to Li Nan-han, a certified public accountant specializing in family business and wealth inheritance at PwC, siblings will no longer be guaranteed a specific portion of an estate if a will exists. However, their status as third-in-line legal heirs remains unchanged. If the deceased does not leave a will, siblings can still inherit property according to existing legal provisions.

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The key point of this legislative amendment is to strengthen testamentary freedom and respect the deceased's final wishes.

The amendment is expected to have a notable impact on estate planning for high-net-worth individuals, childless couples, unmarried individuals, and those involved in family business succession. PwC advises individuals to consult with professional advisors to review their wills, align them with the new legal framework, and plan for intergenerational wealth transfer, including considerations for family business equity arrangements, trusts, and inheritance structures.

This legislative move underscores a shift towards prioritizing the explicit intentions laid out in a will, potentially altering traditional inheritance practices within Taiwanese families.

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Although the siblings' mandatory inheritance share has been removed, their status as third-in-line legal heirs remains unchanged.