How Ningbo Overseas Chinese or Foreigners Inherit Domestic Heritage

Mr. Zhang, a Chinese-American, learned that his uncle in China had passed away, leaving behind a house property and several deposits. He wanted to know how to handle the domestic inheritance procedures as an overseas Chinese or foreigner. One sentence conclusion: when overseas Chinese or foreigners inherit domestic heritage, they should apply the provisions of the inheritance code of the the People's Republic of China Civil Code, first determine the right of inheritance, then notarize the inheritance or bring a lawsuit to the court, and finally handle the transfer of real estate and deposits by legal documents. Since November 7, 2023, the Convention on Cancellation of Certification Requirements for Foreign Official Documents (Hague Certification Convention) has entered into force in China, and the certification procedures for overseas documents have been significantly simplified.

How to determine the 1. right of succession: legal succession, testamentary succession and bequest maintenance agreement

Article 1120 of the Civil Code stipulates that the state protects the inheritance rights of natural persons; Article 1122 stipulates that the estate is the personal legal property left over from the death of a natural person, including real estate, deposits, equity, vehicles, financial products, etc. Article 1123 stipulates that after the inheritance begins, it shall be handled according to legal inheritance, if there is a will, it shall be handled according to testamentary inheritance or bequest, and if there is an agreement-the agreement: the bequest maintenance agreement takes precedence over the will, and the will takes precedence over the legal inheritance.

If there is no will, it shall be inherited according to the legal order of succession: Article 1127 of the Civil Code stipulates that the heirs in the first order are spouses, children and parents; the heirs in the second order are brothers and sisters, grandparents and maternal grandparents. After the beginning of inheritance, the first-order heir shall inherit, and the second-order heir shall not inherit; if there is no first-order heir, the second-order heir shall inherit. Children include children born in wedlock, children born out of wedlock, adopted children and step-children who are dependent; overseas Chinese or foreign nationality does not affect their qualifications to inherit domestic heritage as heirs in accordance with the law. If the heir renounces the inheritance, he shall make a written statement of renunciation of the inheritance before the disposal of the estate; if no statement is made, the inheritance shall be deemed to be accepted.

Application of 2. foreign-related laws: Which country's law has the final say

When the succession involves foreign-related factors, the problem of "which country's law is applicable" should be solved first. Article 31 of the Law on the Application of the Law on the People's Republic of China Foreign-related Civil Relations stipulates: "Legal inheritance shall apply the law of the habitual residence of the heir at the time of death, but the legal inheritance of real estate shall apply the law of the place where the real estate is located. "According to this, real estate located in China belongs to real estate, and inheritance is subject to Chinese law, that is, the inheritance code of the civil code; In principle, for movable property such as deposits and equity, the law of the decedent's habitual residence at the time of death shall apply-if the decedent's habitual residence at the time of death is in China (e. g. long-term residence in China), the legal inheritance of movable property shall also apply to Chinese law, and the smoothest.

Regarding wills: Article 32 of this law provides that a will is valid if its form complies with the law of the testator’s habitual residence at the time of making the will or at the time of death, the law of the testator’s nationality, or the law of the place where the will was executed. Article 33 stipulates that the validity of a will shall be governed by the law of the testator’s habitual residence at the time of making the will or at the time of death, or by the law of the testator’s nationality. In other words, wills made by overseas Chinese abroad can usually be recognized by China as long as the method conforms to the law of the place of establishment or the law of the place of habitual residence, but procedural requirements such as notarization and certification must still be completed. If the decedent has a will, it is the first step to examine the form and effect of the will, and then determine the path of testamentary succession, bequest or legal inheritance.

Notarization of 3. Foreign Instruments: Procedures have been greatly simplified

When overseas Chinese or foreign heirs handle domestic inheritance, the core procedural obstacle lies in the cross-border certification of identity and relationship materials. After the Convention on Cancellation of Foreign Official Document Certification Requirements came into effect in China on November 7, 2023, the cross-border circulation of official documents between China and other contracting states of the Convention will no longer go through the double certification procedure of "diplomatic department certification, embassy and consulate certification", and only need to apply for "additional certification"(Apostille) one-step certification-death certificate, kinship certificate, identity material, etc. issued by foreign countries, after the competent authority of the country issuing the instrument (usually the Ministry of Foreign Affairs of that country or its authorized agency) has applied for an additional certificate, it can be used in China, and the cycle is significantly shortened. Documents issued by countries that have not yet joined the Convention must still be notarized locally and authenticated by the Chinese embassy or consulate in the country of issuance. If the document is in a foreign language, a Chinese translation issued by a qualified institution shall also be submitted.

should verify before handling: whether the issuing country of the document is a contracting state of the convention, the issuing authority and process of the additional certificate, and the requirements of Chinese translation. If it involves real estate registration, bank withdrawal and other departments, you can first consult the specific requirements of the accepting institution for foreign language documents and translations, so as to avoid repeated correction. It is recommended to set aside 1 to 3 months for the entire preparation phase of foreign-related materials, and even longer for non-parties.

4. two processing paths: inheritance notarization and inheritance litigation

If there is no dispute among the heirs, they may jointly apply to a notary office for certification of their inheritance rights; this is the most efficient approach. In Ningbo, you can apply to the notary office where the decedent's domicile or main estate is located at the time of death. Ningbo city and counties (cities, districts) have notary offices, which can first call for consultation materials and appointment requirements. If the heirs are scattered abroad, they can jointly elect a representative or entrust a trustee to handle the matter in a unified way. The power of attorney must be notarized (if it is formed abroad, it shall be handled according to the aforementioned convention or certification rules). After the notary public has issued a certificate of inheritance, the notary public shall handle the transfer of real estate and the withdrawal of deposits on the basis of the certificate.

If there is a dispute between the heirs over the right of inheritance, the scope or share of the estate, and the path of notarization is not feasible, the succession lawsuit shall be brought to the court instead: the people's court of the place where the decedent's domicile or the main estate is located when he dies shall have jurisdiction. After the judgment or mediation becomes effective, the transfer of ownership and withdrawal shall be processed based on the legally effective document. The litigation cycle is usually longer than that of notarization, and foreign-related service and document certification may lengthen the trial time, which must be fully anticipated.

There is a fast channel for deposit inheritance: according to the regulations of the financial supervision department (the new regulations for optimizing the withdrawal of small deposits of deceased depositors implemented on June 1, 2024), the withdrawal limit of small deposits of deceased depositors in the same bank has been increased to RMB 50000 yuan, and the heirs can simplify the withdrawal with death certificate, kinship certificate and other materials without notarization; those exceeding the limit or involving large estates such as equity and real estate, A notarial certificate of inheritance or an instrument of judgment in force is still required.

5. operational steps and material list

1. Determine the way of inheritance: check whether there is a will, bequest and support agreement, and make clear the path of legal inheritance or testamentary inheritance.
2. Collected materials: decedent's death certificate, nationality and identity materials, kinship certificate (birth certificate, account cancellation record, marriage document, etc.), original will, real estate certificate, deposit certificate, equity certificate.
3. Processing of foreign-related document authentication: For countries that are parties to the Hague Convention, an Apostille shall be issued along with a Chinese translation; for non-contracting states, the traditional consular authentication procedure shall be followed.
4. If there is no dispute, jointly apply to the notary office for notarization of the right of inheritance; if there is a dispute, sue to the court of the place where the decedent's domicile or main estate is located when he dies.
5. Based on the Certificate of Inheritance Rights or a legally effective court judgment, proceed to the real estate registration authority to handle the transfer of property ownership through inheritance, and to the bank to withdraw deposits; where equity is involved, apply to the market regulation authority for shareholder change registration.
6. If the heir gives up the inheritance, he should give a written expression of giving up; if the estate disposal involves taxes (such as selling the inherited property later), he should declare and pay taxes according to the regulations.

6. common mistakes

Misunderstanding 1: Foreigners cannot inherit the heritage in China

Error. Foreign nationality does not affect the right of inheritance, overseas Chinese or foreigners can inherit domestic real estate, deposits and other heritage in accordance with the law, only the procedure more than the document certification link.

Misunderstanding 2: As long as you hold a foreign passport, you can't do inheritance notarization

Error. Identity materials can be processed after notarization (or additional certificate) and Chinese translation. Notary offices and registration agencies do not refuse foreign heirs.

Misunderstanding 3: Domestic heritages must be handled in China

Error. The trustee or domestic relatives can be entrusted to act on their behalf, and the power of attorney itself must be notarized and certified.

Misunderstanding 4: Overseas judgments and wills are certainly valid in China

Error. Foreign wills are subject to review in form and effect, and succession judgments of foreign courts are generally subject to application for recognition in accordance with reciprocity or treaty arrangements, and cannot be transferred directly on the basis of foreign instruments.

7. handling differences and cost tips for all kinds of heritages

Inheritance of real estate: register the inheritance and transfer at the real estate registration agency with the notarized certificate of inheritance right or the effective adjudication documents. If foreign heirs are involved, the registration agency will also verify the notarized authentication documents of their identity materials; if there are many heirs and they need to register together, they must all be present or issue a certified declaration of entrustment and abandonment. Deposit inheritance: if the total balance of the same bank account is less than 50000 yuan, it can be withdrawn directly according to the new simplified withdrawal rules implemented on June 1, 2024, without notarization; if it exceeds 50000 yuan, it shall be withdrawn from the bank with the notarized certificate of inheritance or the effective judgment document. The bank generally does not accept large withdrawals only with death certificates. Equity inheritance: Upon the death of a natural person shareholder, their lawful heirs may inherit the shareholder’s status, unless otherwise provided in the company’s articles of association (Article 90 of the Company Law). When registering the change of shareholders, supporting documents proving the inheritance must be submitted, and the articles of association and the register of shareholders shall be amended accordingly. In terms of fees, the notarization of inheritance rights is charged according to the proportion of the value of the estate, and the standards vary from place to place. Registration fees are charged on a piece-by-piece basis for the registration of real estate inheritance. VAT and personal income tax are also involved in the sale of inherited real estate. It is recommended to consult the 123

66and registration agencies in advance.

8. processing cycle, cost and professional support tips

The period and cost of foreign-related inheritance should be planned in advance. In terms of time, inheritance notarization for cases with complete documentation and no disputes can typically be issued within a few weeks; where foreign documents require authentication, the Apostille for Convention member states generally takes a few weeks, while consular legalization for non-member states may take several months; in cases involving litigation, the first-instance trial combined with service of process abroad usually takes six to twelve months or longer. In terms of fees, the notarization of inheritance rights shall be charged according to the value of the estate, the registration of real estate inheritance shall be charged by piece, and the certification, translation and appraisal of overseas documents shall be charged separately. When there are many heirs, it also involves many expenses such as notarization of power of attorney and waiver of declaration. It is suggested to push forward according to the rhythm of "consulting first, starting later, and then handling": first verify the list of materials and cost standards through Ningbo notary office, real estate registration agency and bank customer service telephone, and then handle authentication and translation centrally, so as to avoid repeated round trips due to lack of materials. Involving multi-national identity, complex wills or more controversial, it is recommended to entrust professionals familiar with foreign-related inheritance to assist in sorting out, the division of major heritage should be before the start of the overall calculation of tax burden and procedural costs.

9. FAQ

Do I need an office certificate for deposit inheritance?

Not necessarily. Small deposits in the same bank (less than 50000 yuan) can be withdrawn on the basis of death certificates, kinship certificates, etc. without notarization. If the amount exceeds 50000 yuan or involves disputes, a notarized certificate of inheritance or an effective judgment document is required. Banks generally do not accept large withdrawals based on death certificates alone.

What should foreign heirs do if they want to remit the inherited money out of the country?

The income from legal inheritance belongs to personal property, which can be purchased and remitted through the bank according to law. It needs to be handled with the notarized certificate of inheritance right, effective judgment document, tax payment certificate and other materials, and abide by the regulations of foreign exchange management on personal settlement and sale of foreign exchange and large cross-border receipts and payments. It is suggested to consult the bank for specific materials and quota requirements in advance.

Do overseas wills have to be valid in China?

Not necessarily. The method and effect of the will shall be judged according to Articles 32 and 33 of the Law on the Application of Laws on Foreign-related Civil Relations. It is usually valid in accordance with one of the laws of the testator's habitual residence, country of nationality or place of testamentary act, but it still needs to be notarized (additional certificate) and accompanied by a Chinese translation. The dispute over the effect shall finally be examined and determined by a domestic notary institution or court.

What should I do if I can’t obtain a certificate of kinship?

Alternative evidence can be used: account cancellation record, personnel file, birth medical certificate, family notarization and so on; if it is still unable to prove, you can apply for paternity identification through inheritance litigation or get the file from the court, and confirm the inheritance qualification through litigation procedure if necessary.

Can inheritance disputes be prosecuted after several years?

The limitation of action is generally applicable to inheritance litigation, which is calculated from the date when the heirs know or should know that the rights are infringed, and the maximum is not more than 20 years; the long-term undivided inheritance and the heirs share the same, usually the limitation of time is not applicable, but it is recommended to fix the rights as soon as possible to avoid the loss of evidence.

10. Practical Insights from a Lawyer

For overseas Chinese or foreigners to inherit domestic heritage, the first step is to determine the right of inheritance first: those who have a will will, and those who have a legacy and maintenance agreement, will be dealt with according to the legal order of inheritance. Nationality itself does not affect the qualifications of the heirs to inherit domestic heritage according to law. Therefore, the parties should not worry about whether outsiders can inherit as soon as they come up. Instead, they should first clarify whether the decedent has left a will, how many heirs there are, and whether anyone has given up inheritance. These are the basis for all subsequent procedures and are easy to talk about within the family.

There are two ways in operation, one is to handle the notarization of inheritance, and the other is to solve the disputes through litigation. After completion, transfer or withdrawal of real estate and deposits can be handled by legal documents. When it comes to overseas documents, the most troublesome authentication process in the past has been obviously simplified, but the materials still need to be prepared in a format, including identity and kinship certificates, death certificates, inheritance certificates, etc. Many documents need to be completed abroad before being brought back for use. Different types of property in the handling of differences, real estate, deposits, equity each process and costs are not the same, it is best to list first, separate to advance.

From the perspective of practical rhythm, when the heirs are scattered in different countries, the communication and signature link is most likely to slow down the progress. It can be agreed in advance that one of them or the entrusted agent should be unified to reduce repeated confirmation. If there is a disagreement within the family over the share, or if there is a dispute over the validity of the will or the omission of the heir, it is safer to go to litigation than to force notarization. This kind of affairs involves the connection of transnational materials and multi-departments. Straightening out the inheritance legal relationship first and preparing the materials according to the list at one time can save a lot of time to travel back and forth.

The path of overseas Chinese or foreigners inheriting domestic heritage can be summarized as: the way of inheritance, the application of nuclear law, the certification of documents, notarization or litigation, and the transfer of ownership by documents. Two key points are to be grasped: first, the habitual residence of the decedent at the time of death determines the law applicable to inheritance of movable property, which directly affects which country's law applies. It is suggested to sort out wills, kinship and property documents as soon as possible, and prepare materials at one time according to the list, which can significantly shorten the processing cycle.