My parents gave me money to buy a home: what happens to the inheritance now?

Many parents want to help one of their children buy their first home and decide to give them money to do so. When the parents pass away, the question arises as to whether the child must bring into the estate the property they purchased or the money they received. In this article, as specialist inheritance lawyers, we examine what happens in these situations and what the case law says.

The case examined by the Supreme Court: a child receives money to buy a home

In 2026, the Supreme Court examined a case of this kind involving a dispute between several siblings over their parents’ estate. Two of the children owned two properties and two parking spaces, while the other siblings argued that their parents had paid for them, meaning that the money provided should be taken into account when distributing the estate.

The Supreme Court held that the properties themselves had not been gifted; rather, there had been a donation of money, as the parents had voluntarily transferred funds to their children without receiving anything in return.

The judgment is based on Article 1035 of the Spanish Civil Code, which requires forced heirs or beneficiaries entitled to a reserved share of the estate who inherit alongside other heirs to bring into the estate any assets or values they received from the deceased during their lifetime by way of a gift or any other gratuitous transfer. The purpose of this rule is to prevent some heirs from gaining an unfair advantage by receiving assets during the deceased’s lifetime.

What is a gift subject to collation?

A gift subject to collation is based on the principle that the donor did not intend to favour one heir over the others, but rather intended the gift to be taken into account when the estate was distributed so that all heirs would be treated equally. In other words, the gift is regarded as an advance on the recipient’s future inheritance.

Collation is the legal mechanism that preserves equality between forced heirs and ensures that none of them receives more than the others.

For a gift to be subject to collation, the recipient must be a forced heir, there must be other forced heirs, and the recipient must bring into the estate the asset received during the deceased’s lifetime.

There are exceptions to this rule. Certain gifts are not subject to collation, such as expenses relating to education, healthcare or the specific needs of children.

How is the gift valued when the estate is distributed?

One might assume that the value of the gift is based on the value of the money at the time it was given. However, the value must actually be updated to reflect its value at the time the estate is distributed, so that its purchasing power is equivalent to that at the time the gift was made.

Can there be gifts that are not included in the estate?

Yes. On the one hand, the donor may expressly state when making the gift that it is not to be brought into account when distributing the estate, meaning that it will not form part of the inheritance calculation. On the other hand, a gift will also not need to be brought into account if the heir who received it renounces the inheritance.

Furthermore, as mentioned above, expenses such as maintenance, education, medical treatment and ordinary gifts are not subject to collation. Likewise, expenditure incurred for children with certain disabilities does not need to be brought into account.

Can you always make a claim against a sibling for money your parents gave them?

Not always. It is only possible to make a claim against a sibling for money received from a parent during their lifetime if it can be shown that the gift is relevant to the distribution of the estate and that taking it into account is necessary to protect the reserved shares of the other heirs.

Therefore, where parents provide financial assistance to their children during their lifetime, each case must be examined individually to determine whether the payment constitutes a gift that is subject to collation or whether it is an expense that is exempt from collation.

To prove that a gift was made, evidence such as bank transfer receipts, bank statements, private agreements or notarised deeds of gift, emails, WhatsApp messages or communications through other platforms confirming the existence of the gift may be used.

An example

A couple have three children. They give one of them €100,000 towards the purchase price of a flat. When the parents pass away, the estate is valued at €500,000, and the previous gift of €100,000 must be added to that amount. As a result, the total estate for calculation purposes amounts to €600,000. Each child should receive €200,000. However, as one child has already received €100,000 as a gift, that amount must be deducted from their share.

In any event, it is always essential to seek advice from a specialist inheritance lawyer, who can review all the documentation and determine whether a gift subject to collation has in fact been made so that it can be taken into account when distributing the estate or, where appropriate, legal action can be brought against the person who received it.

If you are facing a situation like this, contact our team of specialist inheritance and succession lawyers, who will assess your case and advise you on the prospects of making a claim through the courts.