Gifts and the Compulsory Share: When a Lifetime Gift Still Counts in an Austrian Estate

A guide for gift recipients and those entitled to a compulsory share – with worked examples

Author: Mag. Nevena Shotekova-Zöchling, Attorney and insolvency administrator in Vienna · As of November 2026

What Exactly Are We Dealing With?

Imagine your father has two children. Ten years before his death, he gives his flat to your sister. When he dies, there is little left apart from a savings account. His will reads: "My daughter inherits everything."

Without special rules, the matter would be simple – and unfair: you would have a claim to your compulsory share, but only out of the savings account. The flat would be "gone", because at the time of death it no longer belonged to your father.

This is exactly what the law prevents. In essence, it says: Giving assets away during one's lifetime cannot be used to circumvent the family's compulsory share. Certain gifts are therefore treated, for calculation purposes, as if they were still part of the estate.

In legal terms, there are two concepts that are often confused:

Adding back (Hinzurechnung) means that the gift is notionally added to the estate. This increases the basis of calculation – and with it the compulsory share of everyone entitled to one. Adding back helps the person who received too little.

Crediting against one's own compulsory share (Anrechnung) means that a person who is themselves entitled to a compulsory share and has already received something during the deceased's lifetime must have that gift credited against their own compulsory share. Crediting holds back the person who has already received a lot.

Neither happens automatically; each applies only if someone requests it – that is, a person entitled to a compulsory share or an heir. In practice, it is almost always requested as soon as significant amounts are at stake.

Who Is Entitled to a Compulsory Share at All?

Before discussing gifts, it must be clear who can claim a compulsory share in the first place. In Austria, since 2017, this is limited to:

• the children (and, if a child has already died, that child's descendants),
• the spouse or registered partner.

Parents, siblings and unmarried partners have no compulsory share.

The compulsory share amounts to half of what the person would have inherited by law had there been no will. With two children and no spouse, each child inherits half by law – so the compulsory share is one quarter each. With a spouse and two children, the spouse inherits one third by law (compulsory share: one sixth), while the children share two thirds (compulsory share: one sixth each).

The compulsory share is a monetary claim. You do not receive a share in the flat, but an amount in euros.

Which Gifts Count – and for How Long?

This is the heart of the matter. What matters is who received the gift.

The decisive question is whether the recipient belonged to the group of persons entitled to a compulsory share at the time of the gift. A child always does. An unmarried partner never does – not even if the couple were together for 30 years. If the two later marry, the assessment may change for gifts made from the date of the marriage.

What Does Not Count

Not every gift is a gift within the meaning of compulsory-share law. The following are excluded (§ 784 ABGB):

• gifts made out of current income that do not reduce the donor's assets – for example, regular smaller payments out of a pension,
• gifts for charitable purposes,
• gifts made out of moral obligation or common decency – the classic birthday or Christmas present of a customary amount.

"Hidden" Gifts

In practice, the interesting cases are rarely the obvious ones. Typical hidden gifts include:

• Transfer of a flat with a right of residence or usufruct: The parents transfer the flat to a child but continue to live in it. This is still a gift – although the reserved right may reduce its value.
• A "sale" at a friendly price: If a flat worth € 300,000 is "sold" for € 50,000, the difference is a gift.
• Money towards the children's house: A contribution of € 80,000 towards building a house, or taking over the loan, is a gift.
• Business transfers to a child without adequate consideration.
• Education: Ordinary education costs are not a gift. Exceptionally expensive contributions may be assessed differently in individual cases.

Whether a gift exists, and in what amount, is often the real point of dispute. It pays to look closely here – on both sides.

How Is a Gift Valued?

The gift is valued at its worth at the time it was made and then projected forward to the date of death – using the consumer price index (CPI) published by Statistics Austria (§ 788 ABGB).

This has two important consequences:

1. Later increases in value do not count. If the flat cost € 150,000 in 2005 and is worth € 450,000 today, it is not today's market value that is used, but € 150,000 plus inflation.
2. Inflation, however, does count. Price levels have risen considerably since 2005. € 150,000 can easily become € 230,000 or more.

For recipients, this is good news: the gains of the property market stay with them. For those entitled to a compulsory share, it means: thanks to indexation, old gifts are often worth more than one might think at first glance.

Example 1: The Gift Went to the Sister

The family: Karl is widowed and has two children, Anna and Ben. For several years he has been living with his unmarried partner Maria.

The gift: In 2008, Karl gives his daughter Anna a freehold flat. Value at the time: € 200,000. Indexed to 2026 using the consumer price index, we assume € 300,000 for this example.

The death: Karl dies in 2026. He leaves a savings account and securities worth € 100,000. His will reads: "My unmarried partner Maria inherits everything."

What happens?

Without adding back, the calculation would be quick: estate € 100,000, compulsory share of one quarter per child – so € 25,000 each.

Ben, however, requests that the gift to his sister be added back. Because Anna, as a daughter, is entitled to a compulsory share, the gift counts without any time limit – the fact that it was made 18 years ago is irrelevant.

The result:

• Ben receives € 100,000 instead of € 25,000. Adding back has quadrupled his compulsory share.
• Anna receives nothing more from the estate – after all, she already received considerably more than her compulsory share during her father's lifetime. She may, however, keep the flat.
• Maria, the sole heir, must pay Ben the € 100,000 out of the estate. That leaves her with nothing from the inheritance.

This surprises many people: a gift to the daughter almost 20 years earlier ultimately determines that the unmarried partner is left empty-handed.

And If the Estate Is Not Sufficient?

Suppose Karl had left only € 40,000. The basis of calculation would then be € 340,000 and Ben's compulsory share € 85,000. Maria can only pay € 40,000 out of the estate. For the missing € 45,000, Ben can turn to his sister: as the recipient of the gift, Anna is liable for the shortfall – up to a maximum of the value of her gift.

This is the moment when siblings suddenly find themselves in court. Often this can be avoided through a sensible settlement – for example, with payment in instalments or security registered on the flat.

Example 2: The Gift Went to the Unmarried Partner

Same family, different story.

The gift: Karl gives the flat not to his daughter but to his unmarried partner Maria. Indexed value, as assumed above: € 300,000.

The death: Karl dies in 2026, estate € 100,000, will: Maria inherits everything.

Now only one question matters: When did Karl give the flat away?

Variant A: Gift eight years before death

As an unmarried partner, Maria is not entitled to a compulsory share. Gifts to her only count if they were made within the last two years before death. Eight years is too long ago – the flat does not count.

Result: Anna and Ben receive € 25,000 each. Maria keeps the flat and the remaining € 50,000 of the estate.

Variant B: Gift 18 months before death

Now the gift falls within the two-year period – it counts in full.

The estate of € 100,000 is not sufficient. Anna and Ben can claim the missing € 100,000 from Maria as the recipient of the gift – up to a maximum of the value of the flat.

Result: Maria loses the entire estate and must additionally pay € 100,000 to the children – or reach a settlement with them, for example by charging the flat as security or selling it.

The Difference at a Glance

The same flat, the same value – and three completely different outcomes.

For Gift Recipients: Do I Need to Worry?

Anyone who received a flat or a larger sum of money years ago often asks after a death: Do I now have to pay it back? Will I lose the flat?

The honest answer: You do not need to worry – but you should be informed.

1. The gift remains yours. A gift is not reversed by the compulsory share. The flat stays registered in your name in the land register. It is purely about money.

2. The estate pays first. Compulsory shares are paid primarily out of the estate. As the recipient of a gift, you are only liable if and to the extent that the estate is not sufficient.

3. Your liability is limited. You are never liable for more than the value of the gift – and that means the indexed value at the time of the gift, not today's market value. Increases in the property's value stay with you. Instead of paying, you may in certain circumstances also hand over the gift itself.

4. Where there are several recipients, there is an order. If several people received gifts, the person who received the most recent gift is generally liable first.

5. Time-based protection for non-family members. If you are not entitled to a compulsory share – for example, as an unmarried partner, niece or friend – and the gift was made more than two years before death, you are not liable at all.

6. You do not have to pay immediately. The compulsory share can be demanded no earlier than one year after death. In addition, payment can be deferred – by provision in the will or, on application, by the court, usually for a few years. So nobody has to sell a flat overnight.

7. The compulsory share may be reduced. If the deceased had no contact with a child for a long time of the kind customary between parents and children, they could reduce that child's compulsory share by half in the will (§ 776 ABGB). This also reduces what you, as a recipient, may have to pay.

8. Claims become time-barred. Compulsory-share claims generally become time-barred three years after the claimant learns of the relevant circumstances. Those who do nothing can lose their claim.

What you should do now: Gather the documents relating to the gift – deed of gift, land register extract, receipts for investments in the flat, evidence of a reserved right of residence. Your own investments and reserved rights can considerably reduce the relevant value.

For Those Entitled to a Compulsory Share: What Am I Entitled To?

If you suspect that the deceased gave away assets during their lifetime, you do not have to rely on guesswork.

1. Request information. Anyone who can request that gifts be added back has a right to information – against the estate, the heirs and the recipients of gifts (§ 786 ABGB). In other words, you are entitled to ask: Who received what, and when?

2. Do your own research. A historical land register extract shows when a property changed hands and on what basis ("deed of gift dated …"). The deceased's bank statements, which can be inspected in the probate proceedings (Verlassenschaftsverfahren), also reveal larger transfers.

3. Calculate. The calculation always follows the same pattern:

Net estate
+ gifts to be added back (indexed)
= basis of calculation
× your compulsory-share quota
– gifts you received yourself (crediting)
= your compulsory-share claim

4. Assert your claim. The claim is directed first against the estate or the heirs, and for any shortfall against the recipients of gifts. Adding back must be expressly requested – ideally already in the probate proceedings before the court commissioner (notary).

5. Keep an eye on the deadline. Three years from knowledge pass more quickly than you might think – especially while negotiations are under way within the family. At the latest 30 years after the death, every claim is time-barred.

Special Cases That Frequently Arise in Practice

Gift to a son- or daughter-in-law. Children-in-law are not entitled to a compulsory share. If the parents give the flat "to the children", but the land register shows the married couple – daughter and son-in-law with one half each – the son-in-law's half is a gift to a third party. It only counts within two years before death. The daughter's half, by contrast, counts without any time limit. Anyone who does not look closely here will get the calculation wrong.

Gift to grandchildren. Grandchildren are among the descendants and thus among the persons who can, in principle, be entitled to a compulsory share. Gifts to grandchildren are therefore generally added back without any time limit – even if the grandchild's parents are still alive.

Gift to a spouse. Spouses are entitled to a compulsory share. Gifts between spouses therefore count without any time limit. This frequently concerns the "transfer of half the house" to the spouse – a classic that, after death, causes surprises for children from a first marriage.

Gift before the wedding. What matters is whether the recipient was entitled to a compulsory share at the time of the gift. If someone gave their unmarried partner a flat five years before the wedding, she was not yet his wife at that time. Whether this gift counts later therefore depends on timing – a point that is disputed in practice.

Blended families. Stepchildren are not entitled to a compulsory share unless they have been adopted. A gift to a stepchild therefore only counts within two years. Conversely, one's own children from a first marriage have a full compulsory share – even if contact was difficult. In blended families in particular, making arrangements during one's lifetime is well worth it.

Several gifts over the years. If amounts were given again and again over decades – a contribution towards a car here, the deposit for a flat there, later the loan – each gift is considered separately and indexed separately. Smaller amounts from current income often drop out, whereas larger sums taken from savings do not.

How a Dispute over Gifts and the Compulsory Share Unfolds

Many people fear years of court proceedings. In fact, the great majority of these cases end without litigation. The typical course:

1. Probate proceedings. After the death, a notary acting as court commissioner conducts the probate proceedings (Verlassenschaftsverfahren). This is where the estate is recorded. Persons entitled to a compulsory share are notified and can register their claims – and can already request that gifts be added back.

2. Information and documents. If gifts are in question, those entitled to a compulsory share request information. Land register extracts, deeds of gift and bank statements are collected. Often it becomes clear at this stage what amounts are actually at stake.

3. Valuation. For real estate, an expert valuation is often needed: What was the flat worth at the time of the gift? What effect does a reserved right of residence have? The figure is then projected forward to the date of death using the consumer price index.

4. Negotiation. Once the figures are on the table, a settlement usually follows. Typical solutions are payment in instalments, security by way of a lien on the flat, taking over a share, or a sale with division of the proceeds.

5. Legal action – if there is no other way. If no agreement is reached, the compulsory share must be enforced by bringing an action. Such proceedings can drag on for some time and involve costs. This makes it all the more important to assess the prospects of success realistically beforehand.

Our experience: those who prepare the figures properly at an early stage negotiate from a position of strength – whichever side they are on.

The Five Most Common Misconceptions

"What I have given away is no longer part of the estate."
For the compulsory share, this is not true. Gifts to children and spouses count without any time limit.

"After ten years, a gift is time-barred."
This rule does not exist in Austria. It comes from German law. In Austria, the rule is: unlimited for persons entitled to a compulsory share, two years for everyone else.

"I have to give the flat back."
No. It is about money – and only if the estate is not sufficient.

"The flat counts at today's value."
No. What matters is the value at the time of the gift, adjusted for inflation.

"If I say nothing, I lose nothing."
On the contrary. Adding back must be requested, and compulsory-share claims become time-barred. Those who wait too long lose their claim.

Planning Ahead During One's Lifetime: How to Avoid Disputes

Most disputes over gifts arise not from greed but from a lack of knowledge. Parents give one child a flat and believe that the matter is thereby "settled". After their death, the dispute between the siblings begins.

Those making gifts can plan ahead:

• Waiver of the compulsory share: The child receiving the gift, or the other children, can waive their compulsory share in return for a settlement payment. Such a waiver requires the form of a notarial deed or a court record.
• Clear provisions on crediting: The deed of gift or the will can set out how the gift is to be credited. Whether and to what extent such a provision is effective against the other persons entitled to a compulsory share must be examined in each individual case.
• Document equal treatment: If one child receives the flat and the other a sum of money, this should be recorded in writing – with date and value.
• Structure rights of residence and usufruct deliberately: Reserved rights affect the value of the gift and thus the later calculation of the compulsory share.
• Align the will: A will that ignores earlier gifts is an invitation to a dispute.

A well-structured gift protects both sides: the recipient against later claims, and the other children against the feeling of having been passed over.

Checklist: The Documents You Need

If you received a gift:

• Deed of gift or transfer agreement
• Land register extract (current and historical)
• Evidence of reserved rights: right of residence, usufruct, prohibition on encumbrance and sale
• Receipts for your own investments: renovation, extensions, loans taken over
• Evidence of consideration provided: care, payments to the parents, debts taken over
• Valuation reports or comparable prices from the year of the gift, if available

If you want to check your compulsory share:

• Will and the court's order of distribution (Einantwortungsbeschluss) or documents from the probate proceedings
• Inventory of the estate's assets
• Historical land register extracts for all of the deceased's properties
• Indications of larger transfers, handovers or "sales" within the family
• Information about the family situation: Who is entitled to a compulsory share? Were there marriages, adoptions, or deceased children with descendants?

The more complete the documents, the faster and more cost-effectively the case can be resolved. Often a single meeting is enough to see whether a claim is worth pursuing.

Legal status: November 2026. Legal basis: §§ 757 ff, 776, 780–792, 1487a ABGB.