How Much Does the Average Person Inherit from their Parents in China?
We will use a fictional succession-related story to illustrate how inheritance works in China.
Here is a hypothetical scenario.
Your father has passed away, but your mother is still alive.
Your paternal grandparents are also alive.
Your parents have two children, you and your brother. In addition, your father was once divorced and has a son with his ex-wife. Besides, your father has an illegitimate child. Therefore, your father has four children in total.
Your parents have community property of CNY ten million in cash. In addition, your father himself has CNY three million in cash, which belongs to your father with your mother’s assent.
Your father does not have any unpaid debts or taxes.
Also, your father made a will while alive, which distributed CNY one million to his illegitimate child from his estate.
And under Chinese law, how much can you inherit?
I. How much is your father’s estate?
Your father’s estate is CNY eight million in cash, including CNY five million in cash that comes from half of your parents’ community property of CNY ten million in cash, as well as CNY three million in cash that your father personally owns.
II. Who has the right to inherit your father’s estate?
Where there’s a will by your father, the successors designated by your father in the will can inherit his estate.
Where there isn’t a will by your father, or there is a residue of your father’s estate after it has been partitioned in accordance with the will, the succession should be determined in accordance with law.
Therefore, your father’s illegitimate child is a testamentary successor, and a total of seven people including your mother, your paternal grandparents, and your father’s four children (including his illegitimate child and his son from his ex-wife) are intestate successors.
III. How the estate is partitioned between the successors?
First of all, testate succession shall prevail when partitioning your father’s estate. Therefore, CNY one million out of the CNY eight million shall first be distributed to the illegitimate child, as the testamentary successor, under the will.
After that, the remaining CNY seven million should be partitioned equally among the seven intestate successors in accordance with law. Therefore, your mother, your paternal grandparents and your father’s four children (including the illegitimate child who has already been distributed CNY one million under the will) will each inherit CNY one million.
Upon completion of the inheritance,
(1) your mother owns CNY five million out of their community property and inherits CNY one million. She now owns a total of CNY six million;
(2) your father’s illegitimate child is distributed CNY one million in accordance with the will (testate succession) and CNY one million in accordance with law (intestate succession). He inherits a total of CNY two million; and
(3) your paternal grandparents and your father’s other three children each inherits CNY one million.
Do you need support in Cross-Border Family Matters (Marriage and Succession)? CJO Family's team can provide you with China-based consulting service, including case assessment and management, background check, and debt collection (‘Last Mile’ Service). If you encounter any problems in cross-border family matters, or if you wish to share your story, you can contact our Client Manager Julia Yuan (firstname.lastname@example.org). If you want to know more about CJO Family, please click here. If you want to know more about CJO Family cross-border family matters service, please click here. If you wish to read more CJO Family articles on cross-border family matters, please click here.
- What Are My Inheritance Rights in China?You can inherit the property of your parents, children and spouse. If anyone lists you as the beneficiary in the will, you also have the inheritance rights stated in the will.
- What Is the Law of Inheritance in China?China used to have Inheritance Law (Law on Succession). However, after the promulgation of the Civil Code in 2020, China has only the “Book VI Succession” in the Civil Code. In other words, the inheritance law became a part of the civil code.
- How to Inherit Properties in China?￼How to Inherit Properties in China? First of all, you need to know whether the decedent has a will and whether you have inheritance rights in the will. If the decedent does not have a will, then you also need to know whether you are the heir in intestate inheritance. That is, whether you are …
- Is Debt Inherited in China?The answer is yes.
- How Much Does the Average Person Inherit from their Parents in China?We will use a fictional succession-related story to illustrate how inheritance works in China.
- Does China Have Inheritance Tax?No, China has no inheritance tax. If you inherit the money, you do not need to pay tax at all. If you inherit the real estate, you need to pay tax for the transfer of the property.
- How Does Inheritance Work in China?During the lifetime, one can specify in the will who inherits his/her house and other heritage. If the person has no will, the decedent’s children, spouse, parents, siblings, paternal grandparents, and maternal grandparents may inherit his/her estate.
- How Do I Get Money From My Deceased Parent’s Bank Account in China?You should first determine whether you are the heir to the money in the bank account of your deceased parent. If you have an inheritance right to the money, you can ask the bank to pay the part inherited by you.
- What Happens to Bank Account When Someone Dies in China?If the owner of a bank account dies, his/her heirs can get the money in the bank account.
- How Much Tax Will I Pay on My Inheritance in China?Generally speaking, there is little inheritance tax payable by heirs in China. Because, in China, heirs do not need to pay inheritance tax, except for some other taxes and fees, which are comparatively small.
- What Happens When You Inherit a House in China?What Happens When You Inherit a House in China? If you and other heirs need to inherit a house jointly at inheritance, there will be …
- When A Parent Dies Who Gets the House in China?The parent can specify in the will who inherits his/her house and other heritage. If he/she has no will, his/her children, spouse, parents, siblings, paternal grandparents, and maternal grandparents may inherit this house and other heritage.
- When Someone Dies Who Gets His/Her Property in China?Before his/her death, he/she can specify in the will who inherits his/her house and other heritage. If the person has no will, his/her children, spouse, parents, siblings, paternal grandparents, and maternal grandparents may inherit this house and other heritage.
- Can A Foreigner Inherit Property in China?The answer is YES. Here’s what to do for foreigners to inherit property in China.