European Expats in China: Inheritance and Estate Planning

European expats living in China face complex inheritance issues involving multiple legal systems. This guide covers estate planning and succession for EU citizens in China.

Which Law Applies?

Chinese Conflict of Laws Rules

Under Chinese law:

• Immovable property (real estate): Law of the location applies
• Movable property: Law of habitual residence at death
• Testamentary capacity: Law of habitual residence or nationality

EU Succession Regulation

For EU citizens, the EU Succession Regulation may apply:

• Generally applies law of habitual residence
• Option to choose law of nationality
• China not bound by EU regulation

Chinese Inheritance Law Basics

Statutory Succession

Without a valid will, Chinese law provides:

• First order: Spouse, children, parents
• Second order: Siblings, grandparents
• Equal shares within each order

Testamentary Succession

Wills in China must meet formal requirements:

• Notarized wills have highest priority
• Handwritten wills must be entirely in testator's handwriting
• Witnessed wills require two witnesses

Common Issues for Europeans

Property in China

• Chinese real estate governed by Chinese law
• Foreigners can inherit property in China
• May face restrictions on holding property

Bank Accounts

• Require death certificate and inheritance proof
• Foreign documents need authentication
• Process can be lengthy

Company Shares

• Shares in Chinese companies can be inherited
• May require regulatory approval
• Consider shareholder agreement provisions

Estate Planning Recommendations

1. Make a will covering Chinese assets specifically
2. Consider notarized will in China for Chinese assets
3. Coordinate with will in home country
4. Keep documents accessible to family
5. Review regularly as circumstances change

Cross-Border Considerations

• Tax implications in both jurisdictions
• Document authentication requirements
• Potential for conflicting court decisions
• Time and cost of cross-border administration