Li lives in the United States. Her father passed away in China and left bank deposits and several A-share stocks. She wanted to know whether she could legally receive the money from abroad. She can, but this is not an ordinary remittance. Inheritance confirmation, asset handling, tax compliance, and bank review all need to be completed.
1. Yes, through the inheritance property transfer procedure
Overseas heirs can get the money, but only through the inheritance property transfer procedure. Eligible foreign heirs and heirs from Hong Kong, Macau, or Taiwan may apply under the Interim Measures for the Administration of Transfer of Personal Property Abroad. The conditions are clear inheritance rights, lawful assets, and completed tax matters. A bank may then process the purchase and cross-border remittance. Funds should generally go to the heir's own overseas account, not directly to relatives or friends.
Official source: People's Bank of China announcement on implementing the Interim Measures for the Administration of Transfer of Personal Property Abroad.
2. Confirm inheritance rights first
Inheritance rights come before funds. Under Article 1122 of the Civil Code of the People's Republic of China, estate consists of the lawful personal property left by a natural person at death. Bank deposits, stocks, and funds are estate. Under Article 1123, succession follows a will, legacy, or legacy-support agreement if one exists; otherwise, statutory succession applies.
Banks and securities institutions will not release funds based only on a death certificate. They usually want an inheritance notarial certificate or a valid court judgment. Cross-border cases also raise a question about which law applies. Under Article 31 of the Law of the People's Republic of China on Application of Laws to Foreign-Related Civil Relations, statutory succession follows the law of the decedent's habitual residence at death, except that succession to immovable property follows the law of the place where the property is located. Deposits and stocks are movable assets, so the applicable law should be identified before preparing documents for Chinese institutions.
Documents issued abroad generally need notarization and authentication. Since November 7, 2023, China has applied the Convention Abolishing the Requirement of Legalisation for Foreign Public Documents (the Apostille Convention). Documents from member states usually need an Apostille; documents from non-member states still follow the consular legalization procedure.
Sources: National Database of Laws and Regulations: Civil Code of the PRC; National Database of Laws and Regulations: Law on Application of Laws to Foreign-Related Civil Relations; China Consular Service: Introduction to the Apostille Convention.
3. Deposits and stocks are handled differently
Bank deposits and stocks do not follow the same path.
Bank deposits: the heir goes to the bank where the account is held with the inheritance notarial certificate, death certificate, and identity documents to withdraw or transfer the funds. Foreign currency accounts or larger amounts may trigger enhanced review.
Stocks: the heir normally completes an inheritance transfer through the securities company or China Securities Depository and Clearing Corporation, then follows the applicable securities account rules for sale and outward remittance. Whether an overseas heir can directly open an account, sell, and remit depends on the current rules of the securities institution.
If the estate also includes real estate, inheritance registration comes first. If the property will be sold, tax filing and payment should be completed before the funds are remitted.
4. Documents, tax, and bank review
For the inheritance property purchase and remittance application, the heir usually needs identity documents, an inheritance notarial certificate or valid court document, proof of the source and existence of the estate, tax payment or exemption documents, and the heir's own overseas receiving account details. If another person handles the process, a notarized and authenticated power of attorney is also required.
Funds should generally go to the heir's own overseas account. China has not introduced an estate tax, and inheritance itself does not usually create individual income tax. Gains from later disposal of stocks or property must be reported according to current tax law and local requirements. The specific documents and review standards depend on the tax authority, designated foreign exchange bank, and processing institution. Policy information verified as of 2026-08-17.
Frequently Asked Questions
Q: Can an overseas heir directly transfer inherited bank deposits out of China?
A: Yes, after inheritance rights are confirmed and the personal property transfer procedure is followed. The heir must provide inheritance certificates or valid court documents, identity documents, proof of assets, tax materials, and their own overseas receiving account.
Q: How are inherited Chinese stocks handled?
A: The heir normally completes inheritance transfer through the securities company or China Securities Depository and Clearing Corporation, then follows the applicable securities account rules for sale and remittance. Requirements depend on the current rules of the securities institution.
Q: Do inherited Chinese bank deposits and stocks trigger estate tax?
A: China has not introduced an estate tax and inheritance itself does not usually create individual income tax. Gains from later disposal of stocks or property may be taxable under current law and local requirements.
Q: Do foreign inheritance documents need notarization or authentication for use in China?
A: Usually yes. Since November 7, 2023, China applies the Apostille Convention; documents from member states generally need an Apostille, while documents from non-member states follow the previous consular legalization process.
Disclaimer: This article is general legal information, not specific legal advice. Every case is different. Please rely on current law, foreign exchange policy, and the requirements of the relevant institution for your situation.