It should be pretty fascinating to see what happens to all this art. To the state of Bavaria, as this article suggests--that is the LAST place it should go.

with some of works having been bought by his father direct from the artists.

Nothing goes anywhere without authenticated provenance to demonstrate theft or malpractice. I'm guessing it will still be wherever it is now in 10 years time.

Vague details from last November here : http://www.bbc.co.uk/news/world-europe-24977814

That was only Hildebrand and Cornelius's claim. Indeed, the father told the Americans that his art collection and documentation records related to it had been destroyed in the bombing of Dresden, so they let him go. The father was deeply, personally involved in the acquisition and selling of the stolen art:

Appointed as a dealer for the Führermuseum in Linz and being personally instructed by Reich Minister of Propaganda Joseph Goebbels, Hildebrand was employed by the Commission for the Exploitation of Degenerate Art with Karl Buchholz (de), Ferdinand Möller (de), and Bernhard Böhmer (de) to market confiscated and stolen works of art abroad. They were instructed to sell these for foreign currency and make a good profit out of them, which he enabled through use of his extensive network of European and North American art contacts, though they did not always report all funds to the commission.[2][5][7]

Degenerate art was legally banned from entering Germany by the Nazis. Once so designated, this art was held in what was called the Martyr's Room at the Galerie nationale du Jeu de Paume in Paris, France. Much of noted impressionist and post-impressionist dealer Paul Rosenberg's professional and personal collection was designated degenerate art by the Nazis. Following Goebbel's decree, Hermann Goering personally appointed a series of ERR approved dealers in Paris, including Gurlitt, to liquidate these art assets and then use the funds to swell his personal art collection.[8]

It was later reported by Bild am Sonntag that, as part of its investigative process, current German authorities had gone back through Nazi records looking for correspondence exchanges with Gurlitt.[9] Through this process it was discovered that, in May 1940, the Reich Propaganda Ministry sold 200 paintings to Gurlitt for 4,000 Swiss Francs, including Chagall’s The Walk, Picasso’s Farming Family, and Nolde's Hamburg Harbour.[9] Hildebrand acquired an additional 115 works of degenerate art in the same way in 1941.[9] It is hence estimated that, at its height, he had established a personal trading collection of more than 1,500 piece

http://en.wikipedia.org/wiki/2012_Munich_artworks_discovery

You may be right that it will all still be there in 10 years, because the claims will be hard to process ... but especially because the German government has put every impediment in the way of quick restitution.

On 5 November 2013 Reinhard Nemetz, the head of the prosecutors' office in Augsburg, said that 121 framed and 1,258 unframed works had been seized in the flat of Cornelius Gurlitt in early March 2012,[1] including unregistered works by Chagall, Dix, Liebermann, and Matisse.[1] The art historian examining the collection, Meike Hoffmann, who claimed in print in 2010 that "not a single one" of these works was ever acquired by Hildebrand Gurlitt,[18] stated to Focus that as many as 300 pieces appeared in the 1937 Nazi Degenerate art exhibition in Munich.[2][5][15] She is presently trying to trace the original owners of the works, and their surviving relatives.[2][5] Art historians have asked that a complete list of the paintings be published, so that they may be returned to their rightful owners.[19]

A portrait of a woman by Matisse is directly traceable to the collection of Paul Rosenberg, a Jewish art dealer from Paris who represented Matisse and Picasso and who had been forced to leave his collection behind when he fled France.[20] When approached by Focus, Rosenberg's granddaughter, French television presenter Anne Sinclair, who has been fighting for decades for the return of the art dealer's paintings, stated that she knew nothing of the existence of the painting.

Why is it that the son, Cornelius, whose flat was in Munich, was practically a nonentity in Germany: "Checks by German federal police, as well as customs and tax authorities, found that Cornelius Gurlitt was not registered with the police, the tax authorities, or social services and that he drew no pension and had no health insurance."

Only a small portion of the works may--and may is an iffy term--have rightfully belonged to him.

t is possible that a number of artworks will be returned to Gurlitt, as he is considered the rightful owner unless the heirs of previous owners can prove that he obtained them through unlawful means.[22] German authorities estimate that around 590 pieces need further investigation for possible confiscation under the Nazi regime, and a further 380 have been identified as confiscated by the Nazis as degenerate art

The hell with the Bavarian government getting a single work.

Gurlitt was nothing but a hoarder of art treasures stolen by the Nazis. Hopefully some of these works will find their way back to the families who originally owned them.

Nazi's they should be sold and the money given to the families that first owned them.

so its all down to proven / substantiated provenance.

state has no right to them.

In which case, being able to produce documentation would be difficult as many of the original owners may have been murdered in concentration camps. There would be no remaining paperwork proving ownership even if you could locate family. Both the Gurlitts disgust me -- father and son. The son could have spent a useful and generous life tracking down the original owners and returning these treasures to so many families but he chose to hoard instead.