Inheritance in China is a legal process by which the close descendants of a deceased person can benefit from his or her life possessions, real or movable assets – such as real estate properties, money, and other valuables the deceased may have owned. Valuables can be inherited by the wife or a husband, children, or other close relatives – sisters or brothers. Our Chinese lawyers can offer you assistance if you need legal representation in an inheritance matter.
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Inheritance assets in China
A person can inherit the assets that the deceased owned in his or her lifetime. According to Chinese law, the following assets can be passed on to a relative who has the right to succession:
- the income;
- the house – including the objects inside;
- tree forests or livestock;
- cultural material – such as books or articles;
- means of production and the property rights of copyright material or patents;
- other properties the decedent may have owned.
Notarization of the Inheritance in China
In order to be acknowledged as the person who legally inherits an asset, certain documents must be presented to the notary. Our lawyers in China can explain the inheritance process, if you may need further clarifications and assistance. As a person inheriting an asset, you should know that the ownership will be legally recognized if the following documents are submitted for notarization:
- identity certificate of the person who will receive the inheritance;
- the decedent’s death certificate and the certificate of kinship with the decedent;
- information about statutory inheritors in the family;
- property ownership certificate and the original testament – if applicable;
- a written agreement (applicable in the case of marital property agreement, signed by the spouses before one’s death);
- a waiver of the right to inherit – if applicable, and a notarized power of attorney.
How are the assets passed in the family?
The assets of a deceased are passed in a specific order: to the spouse, the children, the parents, and finally to the grandparents if it is the case. As it is known, the first persons who are entitled to inherit the properties or values of a predecessor are the wife and the children, and if they do not live anymore, the second in line are the parents, according to Chinese laws. There are also particular cases where the children pass away before the predecessor, and in this matter, the children’s direct lineal descendants have the right to succession by subrogation. It is extremely important to know the inheritance rules and have an idea about the legal aspects involving family matters in case of legacy, therefore, you might want to get in touch with our Chinese attorneys who can tell you more details. They can also explain the rights of foreigners married to Chinese citizens in case they want to make the will.
Inheritance in China and some exceptions
A daughter-in-law or a son-in-law supporting the parents-in-law are entitled in the first instance to inheritance, as their main rights. However, there are also special cases to consider:
- A large share is granted to a successor who cannot prove he/she works in China (cases of poverty or inability to work).
- A small share of the assets is offered, as imposed by Chinese laws, to successors who did not support the predecessor during his/her lifetime.
- A large share of the assets or values is granted to successors who took care, in financial terms, of the predecessor (such information can be comprised by a will).
- A good part of the assets can be inherited by a foreign person (out of the family) if he or she supports the deceased one. Please check our legal services and ask more about inheritance in China.
Inheritance in China is treated seriously. The applicable legislation is meant to protect the family members and their legacy. Foreign citizens living in China will have to align with the regulations in this country, especially if they are married to a Chinese citizen. Do not hesitate to talk to our specialists and find out how they can help in matters of legal advice and support.
The rights of a spouse in China
According to the applicable legislation in China, the husband and the wife have equal rights when it comes to assets and valuables. This is the main principle of Chinese legislation and the one directly involved in an inheritance case. As stated by the People’s Republic of China Inheritance Law, unless other settlements have been arranged by a pre-or post-nuptial contract, half of the joint properties assimilated by the couple during their marriage will be the first selected to the surviving spouse as his or her own asset.
Furthermore, according to the same law, the rest of the valuables or properties will be divided among the children and parents in the family, and it will represent the decedent’s legacy. It is good to know that if the decedent’s asset is part of the common property of the family, then that share of the assets belonging to the other family members will be the first one separated before the division of the decedent’s property takes place. The Inheritance Law in China mentions that joint property is different from property owned by a spouse before marriage, a matter where the inheritance conditions might change. Please talk to our legal advisors for more details in this direction.
What kind of property is subject to the Inheritance Law in China?
The Inheritance Law clearly stipulates that the domicile of a deceased person represents the immovable property subject to legacy. The properties subject to the Inheritance Law in China are the movable properties of citizens living in China, the movable properties of foreign citizens living in this country, and the immovable properties of a foreigner or local resident in China. As a definition stated by the Inheritance Law in China, the domicile represents the place of living of a person for more than just one year, meaning that it has to be personal property. In the case of foreigners living in China, their properties will have to be registered with the local authorities who issue specific registration documents.
Is there a Chinese inheritance tax?
Fortunately, China does not impose an inheritance tax. People who inherit a certain amount do not have to pay a tax. In the case of inheriting a real estate property, the new owner must pay a property transfer fee in this case, but without an extra tax imposed on its value. Here is some other important information about the Chinese inheritance tax:
- Between 1% and 5% is the deed tax rate that had to be paid by the heirs of a property, except for family members.
- In addition to the deed tax, a house evaluation fee of approximately 0.5% of the value of the property in question is also paid.
- It is good to know that around 20% of the income tax must be paid if the inherited property is sold at some point in the future.
We invite you to learn more about Chinese inheritance tax from our lawyers specializing in such cases. We know the provisions of the Chinese Inheritance Law and can clarify certain situations for you, so do not hesitate to contact us.
The importance of a will in China
The will in China ensures fairness in the division of assets after a death in the family. In most cases, wills written and signed by a notary in front of at least two witnesses are accepted. Both Chinese citizens and foreigners who want to make a will are advised to familiarize themselves with the legislation in force and to take into account the conditions under which this important document can be made. In addition, audio-recorded wills are also accepted, only in the presence of at least two witnesses.
Do not hesitate to consult with our team of attorneys in China and make sure that you understand how a will is made and what your legal responsibilities are. We can guide you step by step in this important process.
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