Concept
Inheritance law in mainland China has been governed since 1 January 2021 by Book Six of the Civil Code (民法典), which replaced the 1985 Inheritance Law. The system is similar to continental succession classes but with its own specifics: first, the surviving spouse's half of community property is carved out; there is almost no forced heirship in the European sense; and China has no inheritance tax at all.
Classes and Spousal Share
China is a community property jurisdiction: first, the surviving spouse takes back their half of property acquired during marriage, and only the remainder forms the estate. The first class comprises the spouse, children (including adopted children and stepchildren who were supported), and parents—all inherit in equal shares. If there is no first class, the second class is called: siblings, grandparents on both sides. Right of representation (代位继承) applies: descendants of a predeceased child inherit in their place, and the Civil Code for the first time extended representation to children of a deceased sibling—nieces and nephews—to keep property within the family. Sons and daughters have equal rights.
Wills: 2021 Reform
The Code recognizes holographic, printed, video-recorded, audio-recorded, proxy-drafted, and oral wills in emergency situations—printed and video wills were added for the first time, both requiring two witnesses. The key change: notarized wills no longer have priority over other forms—now the last valid will in time prevails, which better reflects the testator's true intent. The figure of estate administrator (遗产管理人) has also been introduced to collect assets and settle with creditors.
"Necessary Portion" and Testamentary Trust
China does not have a forced share in the continental sense. The only analogue is the "necessary portion" under Article 1141: a will must preserve a share for an heir who is simultaneously incapacitated and has no source of income. This is a narrow safety-net provision, not a European réserve. Article 1133 expressly permits the establishment of a testamentary trust, but domestic Chinese trusts for succession remain underdeveloped, and currency controls complicate cross-border asset transfers.
By Asset Type
Chinese conflict-of-laws rules (Art. 31 of the 2010 Law on the Application of Law to Foreign-Related Civil Relations) split estates in the same way as common law: by statute, movables—cash, accounts, shares—are inherited under the law of the deceased's habitual residence, while immovables follow the law of their situs. A Chinese apartment will be governed by Chinese law, while cash and shares in a Russian bank account will follow the law of the testator's last habitual residence, with distribution through a Russian notary and certificate of inheritance. The reverse complication is China's currency controls: even when the heir's right is undisputed, transferring inherited funds abroad or bringing them into China runs up against SAFE limits and procedures.
Planning Techniques
The toolkit remains simpler than in the West: wills (now more flexible in form), testamentary trusts under Article 1133, lifetime gifts, and life insurance—payouts to a designated beneficiary bypass the estate and are especially valued where there is no inheritance tax. For assets outside China, offshore structures are used, and cross-border families must coordinate Chinese property with foreign vehicles under applicable-law rules. Since there is no inheritance tax, planning here is about control and cross-border access, not tax savings.
When Intestacy Does Not Fit
Chinese intestacy rules divide estates in an averaged manner, and currency controls and weak domestic trusts complicate the transfer of large and cross-border capital. Wills, testamentary trusts, and offshore structures for foreign assets give families the control that the law does not.
🧭 Check your case: Succession Navigator—which law applies, where forced shares and taxes arise.
This material is for informational purposes only and does not constitute individual legal advice.