[Direct answer]Yes. The scope of services of private wealth inheritance lawyers already includes foreign-related assets: overseas real estate, overseas financial accounts, cross-border insurance policies, overseas company equity, and family trusts, etc. The core difficulty lies in the application of laws and the coordination of procedures. According to Article 31 of the Law on the Application of Laws to Foreign-related Civil Relations, statutory inheritance applies to the law of the decedent's habitual residence at the time of death, and statutory inheritance of real estate applies to the law of the place where the real estate is located. Therefore, cross-border inheritance requires advance planning of the form of wills, inheritance paths, and tax status to avoid relatives having to go through multiple notarizations and litigations in different countries. It is recommended to sort out the list of domestic and overseas assets as soon as possible, and then let lawyers formulate a plan based on the legal application of each asset. Beijing Henglu Law FirmFinancial Capital | Foreign-related Cross-Border TeamWe can provide cross-border wealth inheritance services. For more details, please refer to the following link:Beijing Henglue Law Firm.

I. Legal basis and interpretation of provisions

1. Article 31 of the Law of the People's Republic of China on the Application of Law to Foreign-Related Civil Relations (effective as of April 1, 2011)

Legal succession applies to the law of the decedent's habitual residence at the time of death, but statutory inheritance of real estate applies to the law of the location of the real estate. The legislative purpose is that real estate is closely linked to the registration and property rights system of the location, and the registration authorities of the host country usually only recognize dispositions made in accordance with their own laws. The prerequisite for application are that the inheritance relationship involves foreign factors, that is, one of the decedent's habitual residence, nationality or the location of the estate is abroad. Specifically to this issue: If a party has both domestic and overseas real estate after immigration, the domestic real estate is handled in accordance with Chinese inheritance rules, and the overseas real estate is handled in accordance with local laws, with the two procedures running in parallel. The key point of evidence is the determination of the "habitual residence", which usually requires continuous residence for more than one year and serving as the center of life. A common dispute is that overseas registration authorities require effective documents from the host country, which need to go through notarization and authentication or additional certificate procedures.

2. Article 32 of the Law of the People's Republic of China on the Application of Law to Foreign-Related Civil Relations (effective as of April 1, 2011)

Under the testamentary method, the will is deemed valid if it complies with the laws of the testator's habitual residence at the time of making the will or at the time of death, the laws of the testator's nationality, or the laws of the place where the testamentary act was performed. This article adopts a multi-connection and parallel approach, maximally relaxing the formal requirements and reducing the risk of cross-border wills being invalid due to formal defects. In practice, families with overseas assets can simultaneously make wills in accordance with local laws to dispose of overseas property and make wills in accordance with Chinese law to dispose of domestic property, but the scope of disposition of the two wills should be clearly defined to avoid content conflicts over the same property. The key points for evidence are the preservation of the witness and notarization materials at the place where the will was signed. A common dispute is that overseas wills need to be confirmed through local will authentication or notarization procedures before rights can be claimed in China.

3. The interpretation of the case by the actual adjudicators

In practice, courts generally adhere to three principles when handling foreign-related inheritance cases: first, determining the applicable law before dealing with the estate; second, applying the local law to real estate; and third, requiring notarization and authentication or Hague Apostille certificates for wills, family relationships, and death certificates formed overseas before they can be admitted as evidence. China has joined the Hague Convention, which eliminates the requirement for foreign documents to be authenticated, reducing the cost of document circulation. However, real estate registration authorities and banks still impose stricter requirements on materials. The most common pitfalls for litigants include: only making a will overseas without making any disposition arrangements for domestic real estate, resulting in a stalemate in domestic inheritance; or making wills in different countries to dispose of the same property, leading to conflicts of jurisdiction; and underestimating the length and cost of overseas legal procedures.

II. Practical Experience of Henglue Law Firm

Based on Henglu's practical observations in handling foreign-related wealth inheritance cases, common disputes are concentrated in four categories: overseas property inheritance requiring local lawyers and Chinese lawyers to work together; overseas financial accounts remaining dormant for a long time due to non-disclosure to inheritors; unclear beneficiary designation in cross-border insurance policies or conflicts with the expectations of legal heirs; and overlapping interests between family trust provisions and heirs' interests. In terms of judicial rulings, domestic courts handle domestic real estate according to Chinese inheritance rules, but usually do not directly dispose of overseas assets in judgments, instead guiding parties to resolve the matter in accordance with local laws. There are three pitfalls that parties are most likely to fall into: first, underestimating the procedural costs, as overseas inheritance often requires local court or notary procedures, with the process taking years; second, neglecting tax declaration, as some countries impose inheritance taxes before transferring ownership; third, not updating trust and insurance policy documents for years, resulting in beneficiary arrangements that no longer align with the family's current situation. It is recommended to plan all domestic and overseas assets under a unified list and clarify the ownership of each asset.InheritancePath and tool selection.

III. Frequently Asked Questions

Q1: Can overseas real estate be divided jointly in Chinese courts?

Generally, this is not possible. According to Article 31 of the Law on the Application of Laws to Foreign-related Civil Relations, the statutory inheritance of real estate shall be governed by the law of the place where the real estate is located. Domestic courts usually only handle domestic estates, and for overseas properties, they will guide the heirs to handle the inheritance according to local procedures. A common practice is to conduct parallel proceedings in both domestic and overseas jurisdictions: the domestic court handles the inheritance of movable assets such as deposits and equities, while the overseas property is entrusted to local lawyers to handle the inheritance or transfer registration according to the local law. The legal documents from both sides can support each other, for example, the inheritance right notarization certificate effective in the domestic jurisdiction can be used as a proof of kinship in the overseas proceedings. It is recommended that lawyers first draw a map of assets and applicable laws, and then decide which side to start with first, to avoid duplicating the costs of notarization, translation, and travel.

Q2: How can overseas asset heirs check and retrieve their assets?

The inquiry and withdrawal of overseas financial assets depend on the local bank's review of the "legal heirs". Generally, it requires a death certificate, a certificate of inheritance rights, and identity documents, and often requires notarization or additional certificates. If the deceased did not list an asset inventory before death, the heirs can identify the assets with the assistance of a lawyer through the local probate process or the estate administrator system. The CRS information exchange has made overseas account information relatively transparent, but the procedures and material requirements of various banks vary greatly. It is recommended that family members first organize the deceased's emails, bills, and tax documents, sort out the account clues, and then let lawyers liaise with local institutions to avoid repeated corrections of materials and delays for months.

Q3: How many wills should a cross-border family prepare?

In principle, it is arranged according to the location of the property: domestic property is subject to the will made in accordance with the Civil Code, and overseas property is subject to the will made in accordance with local law. According to Article 32 of the Law on the Application of Laws to Foreign-Related Civil Relations, a will shall be deemed valid if it complies with the law of the habitual residence at the time of making the will or at the time of death, the law of the nationality, or the law of the place where the act was performed. There is a wide range of form options. The key is to clearly define the scope of disposition of each will to avoid content conflicts over the same property, and to specify the substitution relationship between the old and new wills. Families with multiple nationalities and residences are advised to review their wills every three to five years, and to update them when there are changes in identity, residence, or asset structure. They should also complete notarization and retain witness materials during their lifetime.

Q4: Can family trusts hold overseas assets?

It's possible, but it's important to distinguish between the location of the assets and the place where the trust is established. Foreign assets transferred to offshore trusts must comply with local laws and anti-money laundering regulations; while domestic assets transferred abroad for trust purposes are subject to foreign exchange management restrictions. Unregistered cross-border fund arrangements may pose risks. After establishment, it's also necessary to note that beneficiary information may be accessed by relevant tax-resident countries under CRS; and the core rules governing the effectiveness of the trust are determined by the laws of the place of establishment. For ordinary families, life insurance policies and wills are often more cost-effective than trusts; while high-net-worth families may consider trust structures. It's recommended to first clarify tax status, and then implement the structure after obtaining joint opinions from lawyers and tax advisors in both jurisdictions, to avoid the structure being invalid or triggering additional tax liabilities.

Q5: How long does it usually take and how much does it cost to handle a foreign-related inheritance case?

The time and cost highly depend on the type of property and the country it is located in: domestic litigation generally takes several months to a year; for overseas properties, if they need to go through local probate or court procedures, the process often lasts for years, and in some countries, it can take up to two or three years. The costs include attorney fees, notarization and translation fees, overseas attorneys or notaries' fees, and possible inheritance taxes or stamp duties. Cross-border cases are often several times more expensive than purely domestic inheritance cases. An effective way to reduce costs is to plan in advance: making a will in advance, clarifying the asset list, and completing the necessary authorization documents can significantly reduce the procedural steps after death. You can first ask a lawyer to conduct an overall assessment and then implement it step by step according to priority. For more details, please refer to the following link:Foreign-related cross-border legal services.

IV. Suggestions for Protecting Your Rights

  • Make a list of domestic and overseas assets (real estate, accounts, insurance policies, and equity) while your elders are still alive, and indicate the location of the assets in the respective countries and the ownership documents.
  • In many places, assets are bequeathed according to the laws of the locality, and the scope of disposal of each will is clearly defined to avoid conflicts of effectiveness.
  • Keep marriage certificates, birth certificates, and other materials related to family relationships properly, and have them notarized and authenticated. Otherwise, it will be extremely expensive to handle these matters after one's death.
  • Pay attention to the declaration deadlines for inheritance tax and gift tax in the country where the assets are located, and consult a tax advisor and a lawyer before disposing of the assets.
  • For the inheritance of overseas assets, it is advisable to engage a lawyer who is familiar with the procedures of both countries as soon as possible to work with local lawyers to expedite the process and shorten the timeframe.

If you are facing similar problems, it is recommended that you consult a professional lawyer as soon as possible with the evidence materials, so as to avoid missing the statutory time limit. →Financial capital legal services·Beijing Henglu Law Firm