China Law and Practice

A Bare Summary, as at 1 January 2026

This document is provided for general guidance only and does not constitute legal, tax or fiduciary advice. Estate planning is bespoke to each individual, and professional advice tailored to your specific circumstances and relevant jurisdictions should always be obtained. Laws and regulations may change from time to time, and reliance should not be placed on this document without appropriate professional confirmation.

1. In Case of Mental and/or Physical Incapacity

• Adult voluntary guardianship is governed by the Civil Code. You are well advised to appoint a guardian by agreement (comparable to a Property & Financial
Affairs LPA) while you are still capable. This must be in writing and determines who will manage your affairs should you lose capacity.
• The appointment of a guardian should ideally be notarised to ensure it is readily accepted by banks and hospitals.
• Regarding medical decisions, while the specific concept of a ‘Living Will’ or ‘Advance Decision’ is not as formally codified as in the UK, the Civil Code recognises a person’s right to self-determination in medical care. On basis of local regulations, hospitals are increasingly respecting written advance directives regarding end-of-life treatment and refusal of excessive resuscitation.

2. Death/Estate Taxes

There is currently no Inheritance Tax or Estate Duty in the Chinese mainland. Beneficiaries receive assets free of inheritance tax.
• However, the transfer of assets may attract administrative costs. For real estate, while inheritance itself is generally exempt from Value Added Tax (VAT) and Individual Income Tax, the beneficiary may still need to pay a minor Stamp Duty or registration fees.
• If a property is gifted during one's lifetime rather than inherited, it may attract Deed Tax (typically 3-5%) and potentially other taxes, making inheritance often the more tax-efficient route for close family members.

3. The Administration Procedure

Unlike the UK, there is no high court ‘Probate’ system. Instead, the system relies heavily on the Notary Public.
• Upon death, the immediate requirement is to obtain a Medical Certificate of Death and subsequently cancel the deceased’s ‘Hukou’ (household registration) at the local police station.
• To access bank accounts or transfer property, the heirs and the Executor (if appointed in the Will) must typically apply for a Notarial Certificate of Inheritance at a local Notary Office.
• The Notary requires the presence of all statutory heirs (even those not named in the Will, to verify they have not been improperly excluded) and the submission of the Will, death certificate, and kinship proofs.
• Once the Notarial Certificate is issued, it acts as the definitive authority for asset transfer. If heirs cannot agree, the matter must be resolved in the People’s
Court.

4. Landed Property Law

There is a fundamental distinction in the Chinese mainland regarding land: urban land is owned by the State, and rural land is owned by collectives. Individuals cannot own the land itself (no ‘freehold’ in the strict sense).


• Instead, individuals own the building (the bricks and mortar) and hold a Right to Use the land for a fixed period (typically 70 years for residential properties). This right is renewable.
• Like the UK, property can be owned by two or more people as follows:

• Co-ownership by Shares (similar to Tenancy-in-Common): Each owner holds a specific share (e.g., 50/50 or 70/30). They can dispose of their share
independently, though other co-owners often have a ‘right of first refusal’.
• Joint Ownership (similar to Joint Tenancy): Typical between spouses. The property is owned as a whole by the partnership. Unlike the UK where
survivorship is automatic, in the Chinese mainland, the surviving spouse owns their half, but the deceased’s half still technically forms part of the
estate to be administered (though the spouse is a primary heir).

1 January 2026