In November 1918, the monarchy of Bavaria was abolished after a successful democratic revolution. Immediately afterwards, the question was raised on how to deal with the House of Wittelsbach in the future and whether and if so, what financial compensation they could expect. The property disputes between the representatives of the Free State of Bavaria and the former royal family lasted from 1919 until 1923. Finally, in 1923, an agreement and a law provided the legal basis for the compensation of the Wittelsbachs in the form of a permanent public foundation, the Wittelsbach Compensation Fund (Germ. Wittelsbacher Ausgleichsfonds), which was to guarantee the financial future of the entitled family members. My talk will focus on the creation of this fund against the backdrop of the financial and political crises in the Weimar Republic.