Reports were circulating that appalled by her wild behaviour, Paris' grandfather and head of the Hilton clan, Baron Hilton, had cut off her 25 million pound inheritance.
Hilton senior, the only member of the family left with a substantial stake in the huge hotel chain, was said to have declared that he intends to donate to charity the 1 billion pounds he will get from this month's sale of the company to private equity firm Blackstone.
The 79-year-old patriarch is said to have told his family that he is cutting off Paris' share.
He reportedly also told family members that his other 11 grandchildren will also not benefit from the windfall, and instead, is determined to continue the family tradition for philanthropy.
Baron's decision has come after a series of embarrassing situations his grand daughter has created for him. These range from her non-stop rounds of partying, to her penchant for shedding her clothes and to her passionate performance in a home sex video leaked on to the internet.
The final blow for Baron was Paris' 23 day jail sentence in the Century Regional Detention Centre in Lynwood, California, in June after she was caught driving her Bentley on Sunset Boulevard while prohibited following a drink-drive conviction.
However, TMZ confirms that Paris is still very much an heiress, and that she's likely to inherit around 30 million dollars.