Consulting legal issues. My father passed away a few months ago. My grandfather used to live with us, but now he lives with my uncle. My father has only two brothers,

No, your uncle's children are not eligible to inherit at present because your uncle is still alive. And you have the qualification of subrogation inheritance as stipulated in the law of inheritance. If there is no will, you and your uncle will share it equally.

Article 10 Heritage shall be inherited in the following order:

First order: spouse, children, parents.

Article 11

If the decedent's children died before the decedent, subrogation inheritance shall be the direct blood relative of the decedent's children. Generally speaking, subrogation inheritance people can only inherit the share of the inheritance that their father or mother has the right to inherit.