Who Pays for Elderly Parents' Long-Term Care? How to Divide Inheritance Fairly? A Look at Compulsory Share, Wills, and Estate Tax

When elderly parents need long-term care, families often worry about two things: who pays for the care, and how to divide the inheritance fairly. The Civil Code sets a minimum guaranteed proportion for the 'compulsory share,' and certain lifetime gifts may be added back to the estate (collation) under specific circumstances. However, children who bear the long-term care costs alone do not have an automatic priority right to be reimbursed from the estate. The following summarizes official regulations on compulsory share, collation, will validity, and estate tax. This is not legal or tax advice; please consult professionals for actual planning.

What is the Compulsory Share? Legal Protection for Heirs in Each Order

The compulsory share is the minimum proportion guaranteed by the Civil Code for heirs. Even if the decedent makes a will giving all property to others, the compulsory share can still be claimed by deduction.

According to Article 1223 of the Civil Code, the compulsory share for direct blood descendants (children), parents, and spouses is one-half of their respective 'statutory shares'
For siblings and grandparents, the compulsory share is one-third of their respective 'statutory shares'
The compulsory share is a fraction of the 'statutory share' (determined by the order of succession and number of heirs), not a fixed percentage of the total estate—the more heirs in the same order, the lower each person's statutory share, and the compulsory share shrinks proportionally; it cannot be directly equated to half of the estate
If a will infringes on the compulsory share, the affected heir can claim a deduction according to law, but must do so proactively; it does not take effect automatically

Are Lifetime Gifts Included in the Estate? How Does the 'Collation' Rule Work?

The Civil Code has a 'collation' system, but it only applies to gifts for specific purposes; not all gifts are added back to the estate.

According to Article 1173 of the Civil Code, if an heir received a gift from the decedent before the inheritance began due to marriage, separation, or starting a business, the value of that gift is generally added to the estate and deducted from that heir's statutory share
The value of the gift is calculated at the time of the gift, not based on later appreciation or depreciation
If the decedent expressed at the time of the gift that it should not be collated, this rule does not apply
Collation only applies to gifts for the three purposes of marriage, separation, or starting a business—simply transferring property to a child or giving regular living expenses does not automatically trigger collation; whether it affects other heirs' compulsory shares is determined on a case-by-case basis; it is advisable to consult a lawyer

If I Bear All Long-Term Care Costs Alone, Can I Get a Larger Share of the Inheritance?

This is a common family dispute, but the law does not provide a mechanism for a child who pays alone to automatically receive a larger share or priority reimbursement from the estate.

According to Article 1145 of the Civil Code, the grounds for losing inheritance rights are quite limited; one ground is serious abuse or insult of the decedent, with the decedent stating that the person cannot inherit—simply not contributing to care is not a ground for losing inheritance rights, and other siblings retain their statutory shares and compulsory shares
The child who bears the costs alone may consider claiming reimbursement from other siblings based on negotiorum gestio (Article 172) or unjust enrichment (Article 179), but they need to keep records of payments, and this usually requires a family agreement or litigation to enforce; it is not automatically deducted from the estate during distribution
Article 1120 of the Civil Code provides that the method of support can be agreed upon by the parties or decided by a family meeting; if no agreement is reached, the court will determine it—there is no fixed formula for cost-sharing, and the economic capacity of each sibling is considered
Rather than waiting until after the decedent's death, most family law resources recommend clarifying the cost-sharing method in writing (family agreement, record of payments) as early as possible to avoid disputes later

How to Make a Valid Will? Differences Between Holographic and Notarial Wills

The Civil Code provides several forms of wills; the most common are holographic wills and notarial wills, each with different requirements.

Holographic will (Article 1190): The testator must personally write the entire will, date it, and sign it. Any additions, deletions, or corrections must be separately noted with the number of words and signed at the modification point—no adult witnesses are required, but the entire will must be handwritten, not typed or written by someone else
Notarial will (Article 1191): Requires at least two adult witnesses. The testator orally states the will's content, which is recorded by a notary, read aloud, and explained. The testator then approves it and signs it together with the witnesses and notary. If the testator cannot sign, the notary may note the reason and use a fingerprint instead
In places without a notary, a court clerk may handle it. If abroad, the relevant embassy or representative office may handle it
The Civil Code also provides for other forms such as witnessed wills, sealed wills, and oral wills, each with different procedural requirements. For which form to use and how to prepare, it is advisable to consult a notary or legal aid resources for the latest regulations

How is Estate Tax Calculated? Exemption, Deductions, and Tax Rates at a Glance

The estate tax exemption, deductions, and tax rates are announced by the Ministry of Finance and are adjusted for inflation. It is advisable to confirm the latest figures before planning.

According to the current announcement on the Ministry of Finance's tax portal, the estate tax exemption is NT$13.33 million
For the taxable net estate amount (exceeding the exemption): 10% for amounts up to NT$56.21 million; 15% for amounts between NT$56.21 million and NT$112.42 million (cumulative difference NT$2,810,500); 20% for amounts exceeding NT$112.42 million (cumulative difference NT$8,431,500)
Common deductions: Spouse: NT$5.53 million; each direct blood descendant: NT$560,000 (minors can have an additional deduction based on years until adulthood); each parent: NT$1.38 million; each dependent sibling or grandparent: NT$560,000; funeral expenses: NT$1.38 million; disability: additional NT$6.93 million
The above amounts are based on the current announcement by the Ministry of Finance and may change with inflation adjustments. For actual filing, please refer to the latest announcement from the National Tax Administration and individual circumstances. This page does not constitute tax or legal advice.

FAQ

Is the compulsory share half of the estate?

No. The compulsory share is a portion of the 'statutory share' (legal inheritance proportion), not a fixed percentage of the total estate. According to Article 1223 of the Civil Code, the compulsory share for children, parents, and spouses is one-half of their respective statutory shares, while for siblings and grandparents, it is one-third. The statutory share itself varies depending on the order of succession and the number of heirs; the more heirs in the same order, the lower each person's share, and the compulsory share shrinks accordingly. It cannot be directly equated to half of the estate.

If parents transfer a house to one child during their lifetime, what can the other siblings claim?

It depends on the reason for the gift. According to Article 1173 of the Civil Code on 'collation,' only gifts made for the purposes of marriage, separation, or starting a business are added back to the estate and deducted from that heir's statutory share. Simply transferring a house to one child for caregiving purposes does not automatically trigger collation. However, if the gift infringes on the compulsory share of other heirs, the affected party may have other claims. The actual situation involves case-by-case determination; it is advisable to consult a lawyer.

If I pay all the long-term care costs alone, will the inheritance still be divided equally in the future?

In principle, yes. According to Article 1145 of the Civil Code, the grounds for losing inheritance rights are quite limited (e.g., serious abuse or insult, and the decedent explicitly stated that the person cannot inherit). Simply not contributing to care does not cause other siblings to lose their statutory shares. The child who bears the costs alone may consider claiming reimbursement from other siblings based on negotiorum gestio (Article 172) or unjust enrichment (Article 179), but they need to keep records of payments, and this usually requires a family agreement or litigation to enforce. It is not automatically deducted from the estate during distribution. It is advisable to agree on cost-sharing in writing as early as possible.

Is a handwritten will legally valid? Do I need witnesses?

It is valid, but the format requirements are strict. According to Article 1190 of the Civil Code, a holographic will must be entirely handwritten by the testator, dated, and signed. Any additions, deletions, or corrections must be separately signed at the modification point. No adult witnesses are required, but it cannot be typed or written by someone else. Failure to meet any requirement may affect its validity. If you prefer to have a notary and adult witnesses confirm the content, you can opt for a notarial will (Article 1191), which requires at least two adult witnesses.

What is the estate tax exemption? How much tax do I need to pay?

According to the current announcement on the Ministry of Finance's tax portal, the exemption is NT$13.33 million. For the taxable net estate amount exceeding the exemption, the tax rate is 10% for amounts up to NT$56.21 million, 15% for amounts between NT$56.21 million and NT$112.42 million, and 20% for amounts exceeding NT$112.42 million. There are also various deductions for spouses, children, parents, funeral expenses, etc. The amounts are adjusted for inflation; please refer to the latest announcement from the National Tax Administration for actual filing.

Can a supported decision-making agreement determine how my estate is distributed after I die?

No, these are two completely different systems. According to Article 1113-2 of the Civil Code, a supported decision-making agreement is an arrangement between a person and a designated agent to act as guardian if the person is adjudicated as under guardianship. It manages the person's life and property during their lifetime. The guardian's authority automatically ends upon the person's death and does not include the power to decide estate distribution or make a will. Estate distribution and will validity are governed by the inheritance provisions of the Civil Code, which are independent and do not replace each other.

Updated: 2026-07-09 · This page is a neutral compilation of information for reference only, not medical, legal, tax, or admission advice. For actual regulations and services, please refer to official announcements from competent authorities and the institutions themselves.