according toArticle 406 of the Civil Code<\/a>A gift requires a gratuitous transfer and mutual agreement to accept it; the formation of a contract does not equate to the completion of the transfer of all property rights. The transfer of real estate property rights must also meet other requirements.Article 758 of the Civil Code<\/a>Registration and written requirements are required, and the transfer procedures and cash flows for stocks, capital contributions, or deposits must be confirmed separately.<\/p>\n\n\n\n First, it should be determined whether the intention to make the gift was genuine and whether the person at the time had the capacity to do so, whether there was any nominee registration, collusion to commit fraud, or unauthorized transfer, before determining whether it involves special gift deductions, wills, or reserved portions. The requirements and effects of these requests are different, and one cannot directly demand an equal division of the gifted house based on the principle that "everyone is a child."<\/p>\n\n\n\n Article 1173 of the Civil Code<\/a>Regarding heirs before the commencement of inheritance, due toMarriage, separation or business<\/strong>In principle, the value of a gift received from the deceased should be added to the estate and then deducted from the heir's share during the division of the estate; however, this is an exception if the donor objects to the deduction at the time of the gift.<\/p>\n\n\n\n Whether a gift is provided for marriage, to support a newlywed couple, to assist with separation and establish a separate life, or to provide start-up capital for a business, the actual purpose must be considered. "Separation" is not solely determined by different household registrations, and "business" is not simply a matter of the recipient having a job. General support, living, or educational expenses are not automatically classified as special gifts simply because the amount is high.<\/p>\n\n\n\n The gift deed, the original message, family discussions, the intended use of funds, and the date of business opening can be used to determine the reasons for and whether to object to the deduction. Objections must be examined in light of the circumstances at the time of the gift, and not simply the recipient's unilateral claim after the parents' death that "the parents originally said it didn't need to be calculated."<\/p>\n\n\n\n The law stipulates the value of a gift according to law.Value at the time of gift<\/strong>The calculation cannot be directly replaced by the house price at the time of division. The deduction is mainly a calculation for distribution, not an automatic revocation of the original gift or a demand for the return of the original house; if the gift value exceeds the inheritance share, whether there is a separate obligation to return it involves legal interpretation and other basis for claims, which are discussed in practice and academic theory, and cannot be uniformly determined to require the difference to be made up.<\/p>\n\n\n\n This is a hypothetical case, not a case handled by our firm:<\/strong>The father died unmarried, with only three children as heirs, each entitled to one-third of the inheritance. Before his death, his eldest son had gifted him a house valued at HK$20 million at the time of the gift, and no objection was raised to its deduction. At the time of his death, he had additional assets of HK$46 million and deductible debts of HK$6 million, with no other gifts, wills, or disputes regarding rights.<\/p>\n\n\n\n Under the above premise, the calculation basis is 46 million yuan plus 20 million yuan, minus 6 million yuan, totaling 60 million yuan; each person should receive 20 million yuan. After deducting the 20 million yuan already received, the eldest son will not receive any further distribution from the existing net estate; the other two will each receive 20 million yuan, totaling 40 million yuan, which is consistent with the existing net estate.<\/p>\n\n\n\n The eldest son's house remains his property as a valid gift, not the property being reclaimed and divided into three parts. If the house was not gifted due to marriage, separation, or business transactions, or if there was an objection to deductions at the time of the gift, the above calculation method cannot be directly applied. Future increases in property value do not automatically mean that the increased value will be used for deductions; the valuation date and supporting evidence must be confirmed first.<\/p>\n\n\n\n A completed gift made during one's lifetime should not be confused with an arrangement that takes effect only upon death.<\/strong>The transfer of property in the former case is already established, and it usually does not become the subject of deduction simply because other heirs claim insufficient reserved shares; however, if it is a special gift under Article 1173, it may still affect the calculation.<\/p>\n\n\n\n Special points calculationArticle 1224 of the Civil Code<\/a>The proceeds shall be calculated in accordance with Article 1173, after deducting the debts, and then calculated according to the applicable statutory proportions, and the actual benefits obtained by the right holder and any shortfall shall be examined.Article 1187 of the Civil Code<\/a>Restricting the freedom of testamentary disposal,Article 1225 of the Civil Code<\/a>If the bequest results in a shortfall, the shortfall may be deducted; the "calculation basis" and the "deductible object" should not be considered the same thing.<\/p>\n\n\n\n bequest of death<\/strong>It is a contract, which requires the mutual consent of both parties and stipulates that it will take effect upon the death of the donor;bequest<\/strong>In this case, a will is used, which is a unilateral posthumous disposition. (Supreme Court)Civil Judgment No. 916 of 2012 (Shangtai Zi)<\/a>Clearly distinguish between living gifts that have been confirmed to be transferred, and recognize that gifts made after death infringe upon reserved portions, and that Article 1225 can be applied by analogy for deduction. One cannot assert the exclusion of reserved portions simply by the name of the contract.<\/p>\n\n\n\n A will specifying the inheritance or division method must be examined to determine whether the reserved portion is infringed upon after its execution, and deductions and subsequent claims should be assessed based on practical experience. Deduction does not automatically invalidate the entire will, nor does it automatically grant a fixed share of each item of property; the declaration of return, registration, or division should be determined based on the method of disposal, the beneficiaries, and the status of property transfer.<\/p>\n\n\n\n Exercising a right requires clear notification to the appropriate beneficiary and preservation of evidence of arrival. In practice, the period for deduction rights is usually determined by analogy.Article 1146 of the Civil Code<\/a>Secondly, be aware of the two-year limitation period from the date of infringement of the reserved portion and the ten-year limitation period from the commencement of inheritance; "knowing the contents of the will" does not necessarily mean "knowing that the performance has caused infringement." The starting point, whether it has been effectively exercised, and the period for subsequent payment claims must be checked separately; simply mentioning a reservation of rights cannot be considered as the completion of all obligations.<\/p>\n\n\n\n As of October 25, 2026, the amendment to Article 1223 of the Civil Code, which removed the reserved portion for siblings, has been implemented.Announced on August 17, 2026<\/strong>;according toArticle 12 of the Implementation Law of the Inheritance Chapter of the Civil Code<\/a>Six months after its announcement,Effective from February 17, 2027<\/strong>The newly published provisions cannot yet be considered as having taken effect.<\/p>\n\n\n\n according toArticle 1147 of the Civil Code<\/a>Inheritance begins upon death, and the distinction between the old and new laws should be made based on the time of death and the transitional provisions. Inheritance that began before the new law came into effect cannot have its reserved shares for siblings revoked simply because a lawsuit was filed later.<\/p>\n\n\n\n The third-order statutory inheritance rights of siblings are still seen inArticle 1138 of the Civil Code<\/a>The removal of reserved shares does not equate to the removal of statutory inheritance rights; children, being direct blood relatives, are not among those whose protection has been removed in this instance. Special contributions, discretionary inheritance, and other related matters are addressed in separate cases, and the draft law, not yet implemented, cannot be used as the basis for current claims. Please refer to our office's regulations.Special provisions for siblings and media commentary<\/a>.<\/p>\n\n\n\n When parents contribute funds and register a property in their children's names, it could be a gift of funds or property, a nominee registration, or other arrangements. The parents' continued residence, mortgage payments, or rental income all have evidentiary value, but a single fact is insufficient to definitively prove a nominee relationship.<\/p>\n\n\n\n The purchase and transfer agreements, source of funds, loan and tax burdens, rental income, title custody, and dialogue between the parties should be compared to determine whether it was agreed that the children would only be the nominal owners. Those claiming nominee ownership must provide sufficient evidence to prove the agreement and the basis for return; they cannot simply use "the house was originally bought by my parents" as a substitute for evidence.<\/p>\n\n\n\n If the apparent sale is a sham colluded by both parties, it involves...Article 87 of the Civil Code<\/a>However, the validity of any hidden gifts or other legal acts still needs to be determined separately, and attention should be paid to the protection of bona fide third parties. Even if the reason for registration is a sale, other possible real arrangements cannot be ignored simply because there is no cash flow.<\/p>\n\n\n\n FocusAt the time of gift and transfer<\/strong>The state.Article 75 of the Civil Code<\/a>Involving persons without capacity for civil conduct, or expressions of intent made unconsciously or in a state of mental confusion; advanced age, illness, or subsequent diagnosis of dementia does not mean that every past disposition of property is invalid.<\/p>\n\n\n\n Medical records, cognitive assessments, and dates of medical visits should be compared with the dates of signing, affixing of seals, land administration procedures, and payment transactions. Furthermore, on-site witnessing, audio and video recordings, contractual explanations, and the individual's words and actions should be examined. If the diagnosis certificate is dated long after the transfer of ownership, other supporting documents are usually required; one cannot infer from the diagnosis alone that the individual was unable to understand the gift at the time.<\/p>\n\n\n\n If fraud or coercion is involved, it can be handled according to law.Article 92 of the Civil Code<\/a>The revocation should be assessed; if significant errors are involved, an investigation is required.Article 88 of the Civil Code<\/a>The requirements are as follows. "Being unjustly influenced" is not an independent slogan to exempt oneself from the burden of proof. Invalidity is different from revocation, and the rights holder, succession, and time limit are also different; for example, Article 93 sets one-year and ten-year limits for revocation due to fraud and coercion, which should be checked as early as possible, rather than waiting until the division to make a claim in all cases.<\/p>\n\n\n\n In civil law, the ownership of property after a valid transfer is examined; in deduction, the distribution of property is assessed based on whether a special donation affects the distribution; and in special retention, the minimum guarantee is infringed upon by specific post-mortem disposals. Tax law, on the other hand, refers to the tax system. These four systems cannot be substituted for one another.<\/p>\n\n\n\n according toArticle 15 of the Estate and Gift Tax Act<\/a>Property gifted to a spouse, legal heirs of all orders, or their spouses within two years prior to death must be included in the total estate for taxation, but this does not apply to all recipients.Being taxed as an estate under tax law does not necessarily mean that the property will become the subject of civil estate division again.<\/strong><\/p>\n\n\n\n Article 6 of the current law, in addition to Article 15, includes the property received as a gift, stipulating that the estate tax calculated proportionally is borne by the donee and limited to the amount of the gifted property, and includes transitional provisions for specific old cases. When processing the estate tax, the time of death, the donee's identity, and the old and new laws must be verified; it is inappropriate to assume that the entire burden is borne by the unreceived heirs.<\/p>\n\n\n\n Declaring or paying gift tax does not automatically prove the validity of the gift or exclude it from civil litigation. For details on tax exemptions, stock gift declaration planning, please refer to separate documents.Gift Tax and Property Planning Guide<\/a>Tax savings should not be used as a pretext to conceal the true nature of transactions.<\/p>\n\n\n\n First, establish a timetable for property transfer, compile real estate transcripts and changes, gift or sale agreements, remittance and source of funds, bank and securities transactions, gift tax declarations and assessments, wills, and an inventory of the estate at the time of death. Family discussions and information at the time should be recorded in their entirety, not just a single advantageous sentence.<\/p>\n\n\n\n Claims for restitution should focus on the purpose of the gift in relation to marriage, separation, or business transactions, the value at the time of the gift, and any objections. Claims for nominee ownership should focus on the agreement to hold the gift in name and the return arrangement. Claims for invalidity or revocation should focus on the capacity at the time of the act, any defects in intent, and the duration of the act. Claims for reserved portions require a basis for calculation, the content of the benefit, any shortfall, and evidence of exercise.<\/p>\n\n\n\n If the scope or division of the estate is involved, it is also necessary to confirm all heirs and the ownership of their rights. Documents held by the individual should be kept for future reference. Other financial or medical records should be obtained through legal means, and if necessary, a court investigation should be requested. Impersonating parents, stealing accounts, or illegally accessing other people's medical records is strictly prohibited.<\/p>\n\n\n\n Valid gifts that need to be deducted are usually handled and calculated during the division of the estate; if a claim is made for a nominee transfer, invalid transfer, or revocation, it may involve confirming rights, returning property, canceling or transferring registration. For reserved portions, the subject matter of the deduction and the exercise of rights must be confirmed first before a request for return or registration can be made.<\/p>\n\n\n\n Property registered under a child's name may not automatically be included in the estate register. The decision to confirm or consolidate the property must be made based on the claim, the party against whom it is registered, the property itself, and the relevant procedures, and the distinction between civil and family jurisdiction must be made. Detailed procedures can be found in [reference needed].Inheritance division litigation, house occupancy and inheritance scope disputes<\/a>.<\/p>\n\n\n\n Fidelity Law Firm can assist in analyzing the validity of gifts, nominee shareholdings, and transfers; compiling evidence of real estate, financial assets, and company shares; calculating deductions and reserved portions; and assessing will arrangements, restitution of property, and civil or family litigation. In high-value cases, the truly claimable rights should be clarified first, and unfair distribution should not be the sole ground for litigation.<\/p>\n\n\n\n If multiple heirs or family assets are involved, please contact our firm.Inheritance and Family Property Dispute Services<\/a>When civil attribution and taxation differ, they can be integrated.Tax disputes and administrative remedies<\/a>Assessment, and referenceLawyer Li Yusheng introduced<\/a>.<\/p>\n\n\n\n A return cannot be demanded solely based on uneven distribution. First, the validity of the gift, whether it was made in someone else's name, whether it was a matter of legal capacity, or other defects, must be investigated before determining whether a deduction or a reserved portion is appropriate.<\/p>\n\n\n\n Not necessarily. The valid transferor is usually no longer an existing estate; special gifts that meet the criteria of Article 1173 may require the inclusion of value in the calculation, but this does not equate to the recovery and distribution of the original property.<\/p>\n\n\n\n If an heir receives a gift before the commencement of inheritance due to marriage, separation, or business operations, the gift should, in principle, be deducted from the heir's assets; however, the purpose of the gift and whether the deceased objected to the deduction at the time of the gift must still be investigated.<\/p>\n\n\n\n This cannot be generalized. Living gifts that have been confirmed for transfer differ from death gifts or bequests that take effect at the time of death; their calculation basis, deductions, and methods of claim should be examined separately.<\/p>\n\n\n\n An assessment can be made based on specific evidence, but it must be proven that the individual had a lack of capacity or intent at the time of the act; advanced age or a subsequent diagnosis will not automatically invalidate the entire transfer, and it must also be confirmed who has the right to claim it.<\/p>\n\n\n\n No. The principle of concurrent taxation under tax law differs from that of civil property ownership; the validity of the gift, special gifts, or other claims for return must be examined separately.<\/p>\n\n\n\n The determination should be made based on a comprehensive assessment of the purchase price, management and use, returns, registration documents, and agreements between the parties. The absence of a written gift agreement does not necessarily mean the gift is being used under another's name, and parental contributions are not the sole determining factor.<\/p>\n\n\n\n As of October 25, 2026, it had not yet taken effect. The amendment was announced on August 17, 2026, and will take effect on February 17, 2027; it must be determined according to the commencement time of inheritance. The reserved shares for children and the statutory order of inheritance for siblings should not be confused with the scope of this deletion.<\/p>\n\n\n A lawsuit for the division of an estate does not necessarily have to wait for the consent of all heirs. When faced with issues such as a house being occupied by one person, unclear whereabouts of savings, or disputes over the scope of property, the heirs, the estate register, and the claims should be confirmed first, before assessing options such as family mediation, return of usage benefits, or court-ordered division.<\/p>Read the full article \u2192<\/span><\/div><\/a> https:\/\/youtu.be\/5310h1bb5OA?si=FEgxTNtxt-SrqCQJ Ministry of Justice to Delete "Reserved Share" in Sibling Inheritance | Mirror News Reporter Gong Pinrou News Link: https:\/\/youtu.be\/5310h1b\u2026<\/p>Read the full article \u2192<\/span><\/div><\/a>What is special gift deduction? Which lifetime gifts need to be included in the calculation?<\/h2>\n\n\n\n
How should an estate be calculated if a house worth 20 million yuan is gifted by one's parents before their death?<\/h2>\n\n\n\n
Does a gift made during one's lifetime infringe upon reserved funds?<\/h2>\n\n\n\n
What impact will the amendment to the law on the special provisions for siblings in 2026 have on inheritance disputes?<\/h2>\n\n\n\n
If parents transfer ownership of a house before their death, how can you determine whether it is a genuine gift or a nominee registration?<\/h2>\n\n\n\n
If a parent suspects that their parents have dementia or have been unduly influenced when they donate property, can the donation be declared invalid?<\/h2>\n\n\n\n
What are the differences between gifts made during one's lifetime, which are subject to estate tax, and gifts made within the last two years of death, which are subject to combined taxation?<\/h2>\n\n\n\n
What evidence do other heirs need to prepare if they want to file a lawsuit?<\/h2>\n\n\n\n
What kind of lawsuit should be filed in the event of a dispute over a gift made during one's lifetime?<\/h2>\n\n\n\n
How can Fidelity Law Firm assist with disputes involving large-scale living gifts and inheritance?<\/h2>\n\n\n\n
Frequently Asked Questions (FAQ)<\/h2>\n\n\n\n
If the parents transferred the house to the older brother before their death, can the other children demand its return?<\/h3>\n\n\n\n
Should property gifted by parents during their lifetime be included in the estate distribution?<\/h3>\n\n\n\n
What situations qualify as special gifts under Article 1173 of the Civil Code?<\/h3>\n\n\n\n
If a gift of special funds is made during the lifetime and the funds are misappropriated, can the recipient directly request their return?<\/h3>\n\n\n\n
If a house is transferred to the parents while they are suffering from dementia, can the other children file a lawsuit?<\/h3>\n\n\n\n
Can property gifted within two years before death necessarily be subject to division?<\/h3>\n\n\n\n
Without a gift contract, how can one determine whether it is a gift or a nominee registration?<\/h3>\n\n\n\n
Has the amendment to the law reserving special allowances for siblings taken effect in 2026?<\/h3>\n\n\n\n
Further reading<\/h2>
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<\/div>What to do if you can't reach an agreement on the division of an estate? Lawsuits arising from an heir occupying a house, withdrawing funds without authorization, and the division of the estate.<\/h3>
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<\/div>The Ministry of Justice will remove provisions regarding the "reserved portion" in the inheritance of siblings' estates, as explained by lawyer Li Yusheng, concerning the validity of wills and reserved portions in civil law inheritance.<\/h3>
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