Inheritance of Mainland Inheritance by Hong Kong Residents: Q&A
What are the methods for Hong Kong residents to inherit from the Mainland?
There are two ways for Hong Kong residents to inherit an estate in the Mainland: one is to establish the right of inheritance and process the inheritance by means of notarisation by a mainland notary public, provided that there is no objection from any person related to the inheritance and the documentation is in order; the other is to confirm the right of inheritance and process the inheritance through litigation in a mainland court and the issuance of a judgement, which is applicable to cases where it is not possible to obtain the consent of all persons related to the inheritance or where the supporting documents do not meet the standard. The other one is through litigation in the Mainland courts through the issuance of a court judgement, which applies to cases where the consent of all persons concerned with the succession cannot be obtained, or where the supporting documents do not meet the standard.
What is the procedure for a Hong Kong resident to inherit from a Mainland estate by means of a Notary Public?
Firstly, make a probate enquiry in Hong Kong through a solicitor’s office (if the deceased’s estate has been probated in Hong Kong and a probate deed has been obtained, a probate enquiry is not required); secondly, make a Declaration of Administration of Relatives and Testamentary Condition as a Trust Instrument of the Ministry of Justice through a solicitor’s office in Hong Kong; thirdly, apply for a Certificate of Inheritance at a notary public’s office in the Mainland; and lastly, go to a bank, etc. to collect the estate or go through a Finally, collect the inheritance from banks and other institutions or go through the property transfer procedures.
What is the procedure for Hong Kong residents to inherit an estate in the Mainland by way of litigation?
Firstly, to have the Hong Kong evidence documents used in the Mainland litigation notarised in Hong Kong; secondly, to file a lawsuit for inheritance in the Mainland court, to have the case filed, to have it heard in court and to make a judgement, or to have mediation conducted and to make a statement of conciliation under the auspices of the court.
What are the main costs for Hong Kong residents who inherit from the Mainland by way of notarisation?
Firstly, the solicitor’s fee for commissioning a solicitor; secondly, the probate search fee if a probate search is required (which is required if there is no estate contract in Hong Kong); thirdly, the notary fee for notarized documents commissioned by the Ministry of Justice in Hong Kong; and fourthly, the inheritance notarization fee charged by notary publics in the Mainland.
What are the main costs for Hong Kong residents who inherit from Mainland China through litigation?
Firstly, the solicitor’s fee for appointing a solicitor; secondly, the notary’s fee for notarizing the evidence in Hong Kong; and thirdly, the litigation fee charged by the court (usually 1% of the value of the inheritance, half of which can be refunded if the case is settled by mediation in the course of the litigation).
Do Hong Kong residents have to pay estate duty when they inherit from the Mainland?
There is no estate duty.
Do Hong Kong residents need to pay estate duty when they inherit property from the Mainland?
If the inheritance is intestate and in accordance with the order of succession as stipulated by law, i.e. legal succession, there is no transfer tax on the property transfer. There is also no transfer tax if the succession is testamentary, and the heirs are also within the scope of legal succession. Only in the case of testamentary succession and the heirs are not within the scope of legal heirs, the transfer will be subject to Deeds Tax.
Can a Hong Kong resident appoint a solicitor to handle the inheritance of a Mainland estate without the heir himself returning to the Mainland?
Generally speaking, yes. Depending on the circumstances, it may be necessary for the heir to return to the Mainland in person under certain circumstances.
Can Hong Kong residents entrust your firm (Yan Lawyers) to handle all the Hong Kong and Mainland procedures for inheritance?
Yes. We can assist and represent our clients in all the procedures in Hong Kong and Mainland China until the client receives the inheritance or obtains a new property title. Our colleagues in Hong Kong and Shenzhen on the Mainland will assist our clients to go through the procedures in Hong Kong and the Mainland respectively.
If a Hong Kong resident inherits an estate in the Mainland by way of litigation, can your lawyers represent the client in the estate litigation in the Mainland?
Yes. Through our affiliated law firm, Guangdong Hong Kong Island Law Firm (广东港岛律师事务所), our lawyers represent our clients in inheritance proceedings in the Mainland.
If the deceased had estates in both Hong Kong and the Mainland, is there any order of priority in the process of inheritance in Hong Kong and the Mainland?
If the deceased was a Hong Kong resident, it is generally recommended that the Hong Kong Probation should be applied for first to obtain the Grant, and then apply for inheritance in Mainland. This will obviate the need to conduct probate enquiry during the inheritance process in the Mainland.
What is the procedure for Hong Kong residents to entrust your firm to handle their Mainland inheritance?
Firstly, add our lawyers’ WeChat or WhatsApp (+852 51039249) or contact our lawyers via our telephone number for preliminary enquiry and quotation; secondly, after deciding to start the process, make an appointment to come to our firm to sign the contract of trust and pay the first instalment of the fee; and then, our firm will start the process. If the client is not in Hong Kong, he/she can also sign the trust contract and pay the fee by remittance via email.
Is there a fee for Hong Kong residents to visit your firm for an in-person consultation for inheritance in Mainland China?
Firstly, simple consultations and quotations can be conducted over the phone to save time and are generally free of charge. Secondly, if the matter is complex or requires detailed communication before advice can be given to the client, an appointment can be made for an in-person consultation at our firm or a telephone conference at a fee of HK$1,500 for half an hour. If, after the consultation, the client entrusts us to handle the related succession matters, the consultation fee already paid can be offset against the cost of the entrustment.
(Bob Yan, principal solicitor of Yan Lawyers, solicitors. Email: [email protected], Tel: +852 31881995, +86 15018939249, WhatsApp: +852 5103 9249)