The basic question to be addressed in this chapter is: what is the status of the notions ‘inheritance’ and ‘default inheritance’ in the theoretical framework of Construction Morphology (CM)? This framework, developed in Booij (2010), assumes a hierarchical lexicon with both abstract morphological schemas and stored complex words that instantiate these schemas. The lexicon of a language can be modelled in such a way that the abstract word formation schemas dominate their individual instantiations. Thus, the lexicon is partially conceived of as a hierarchical network in which lower nodes, the existing complex words, can be assumed to inherit information from dominating higher nodes. Advantages of a full-entry theory over an impoverished entry theory are outlined, and the chapter includes discussion of polysemy, allomorphy, and the class of items that fall between derivatives and compounds using ‘affixoids’.