U.S. Mother's Deposits in China Inherited by Two Daughters

When a parent passes away abroad, deposits left in China do not disappear. The heirs must follow a strict procedure: notarize and Apostille foreign documents, translate and notarize them in China, complete inheritance notarization, and withdraw the funds with the notarization certificate. This article follows the anonymized case of a U.S. mother's two daughters inheriting her deposits in China.

1. Case Background

Ms. Tang (anonymized) became a U.S. national years ago and lived in the United States in her later years. After she passed away in the U.S. in early 2024, she left bank deposits and other estate assets in China. Both daughters were U.S. nationals living in the U.S. and could not return to China.

Estate: bank deposits and other movable assets in China (subject to the bank inquiry notice).

2. Key Difficulties

1. Governing law: the decedent was a U.S. national; the law governing succession to movable property had to be determined first;
2. Foreign documents: the death certificate, identity consistency certificate, and heirship affidavit were in foreign languages and required notarization, Apostille, translation, and translation-conformity notarization;
3. Name consistency: differences between Chinese and English names and old/new documents had to be bridged with a same-person certificate;
4. Procedure sequence: inheritance notarization, bank inquiry, withdrawal, and fund transfer were closely linked;
5. Family history: the earlier inheritance and renunciation documents affected the determination of heirs.

3. Case Process

Step 1: Prepare foreign documents

1. Obtained the U.S. death certificate and Apostille from the Secretary of State;
2. Prepared the Affidavit of One and the Same for the decedent and heirs, notarized in California and Apostilled;
3. Prepared the heirs' U.S. passports and identity documents.

Step 2: Authorization and engagement

1. Signed the legal services agreement for the Chinese inheritance;
2. Signed a power of attorney authorizing notarization applications, document submission, estate inquiry, inheritance procedures, fee payment, and certificate collection;
3. Signed an inquiry letter authorizing a search of the decedent's bank account balances.

Step 3: Inheritance notarization

1. Applied to the notary office for inheritance notarization;
2. Submitted identity documents, death certificate, kinship certificate, property evidence, authenticated heirship affidavit, and Arizona legal opinion;
3. The notary office verified will information and issued the inheritance notarization confirming that the two daughters inherited jointly.

Step 4: Withdrawal and fund transfer

1. With the notarization certificate and identity documents, completed the estate inquiry and withdrawal at the bank;
2. The cash portion was transferred from the heirs' Chinese accounts to overseas accounts in accordance with foreign exchange regulations.

4. Legal Analysis

4.1 Governing law for cross-border inheritance

Situation: the decedent was a foreign national and the estate is in China.

Risk: incorrect determination of governing law may cause the notary office to reject the application or misidentify heirs.

Recommendation: under Article 31 of the Law of the People's Republic of China on Application of Laws to Foreign-Related Civil Relations, statutory succession to movable property is governed by the law of the decedent's habitual residence at death. Here, Arizona law applied, and an authenticated legal opinion was required.

4.2 Authentication chain for foreign documents

Situation: foreign-language death certificates and kinship documents must be used in China.

Risk: documents that are not notarized and authenticated are not accepted by the notary office.

Recommendation: prepare all documents as the three-document set: local notarization + Apostille + domestic translation and translation-conformity notarization. Add a same-person certificate where names or documents changed.

4.3 Bank estate inquiry and withdrawal

Situation: the heirs do not know the specific accounts or amounts.

Risk: incomplete documents prevent withdrawal; if the estate scope is not locked down, the notarization content is incomplete.

Recommendation: first lock down the estate scope through a bank inquiry letter, then complete inheritance notarization; withdraw with the original notarization certificate.

5. Recommendations for Clients

1. Prepare the three-document set: notarization + Apostille + translation notarization are all required;
2. The same-person certificate is critical: bridge Chinese and English names and old and new documents;
3. Inquire before notarizing: let the bank or notary office confirm the deposits first so the estate scope is clear;
4. Keep family history documents: predeceased spouse, renunciation, and transferred inheritance documents should be retained.

Frequently Asked Questions

Q1: Can foreign children inherit their parents' deposits in China?

A: Yes. Inheritance rights are not affected by nationality. Foreign heirs enjoy the same rights as Chinese heirs.

Q2: How are U.S. documents used in China?

A: U.S. documents must be notarized, Apostilled by the Secretary of State, translated by a qualified Chinese agency, and notarized as conforming to the original.

Q3: Can inheritance notarization be completed while I am abroad?

A: Yes. Through a notarized and Apostilled power of attorney, a Chinese lawyer can be remotely authorized to handle inheritance notarization, bank inquiries, and withdrawal.

Q4: How can inherited funds be transferred abroad?

A: Tax filing and foreign exchange approval are required. The heir applies for purchase and payment of foreign exchange with the inheritance notarization, tax certificate, and related documents.