His parents had a 120-square flat in the west of the city and a market value of 2. 8 million. He wanted his son to inherit after a hundred years, save his life, and was stopped by his niece as a lawyer: "uncle, truly inherited, this house is at least 50,000 for nothing, and may be divided half because of the change of marriage. If the son sells his house, you have no place to live." finally, the old man chose a combination of “ninety-one + right of abode + compulsory gift”: the son took 90 per cent of the share, the two left 10 per cent, accompanied the registration of the right of permanent residence, and signed a notarized binding agreement — the son's non-support and private disposal property — to revoke the gift. The tax package was only over 8,000, more than 40,000, and the old man had a “one vote of veto” in his hand: the son had to nod the 10 per cent of the two。
Let's get to the point where silly's got to go
Many old people, like their parents, think, "the estate is for children sooner or later, and then they'll inherit it."
Ray 1: the hidden costs are high, at least tens of thousands. There is no estate tax in the country, but the inheritance process does not allow for the legalization of inheritance rights, usually at a rate of 1. 2 to 2 per cent of the value of the property, with a cost of $3. 36 to 56 million for 2. 8 million. In the case of multiple heirs (e. G. Stepchildren of remarried families, older persons in the world), the notary must be present in full, and one less person cannot do it。
Ray 2: the house is completely out of control and is insecure. He wants to sell, mortgage, rent or rent. If there is no prenuptial property agreement after marriage, the house is the joint property of the spouses and half of the divorce is customary. Before zhengzhou had an aunt who left the house for the only child, the son sold the house to a p2p mine, the daughter-in-law had a share of 1 million, and the aunt had only to rent it, and the prosecution could not win — the house belonged to the son and the disposal was entirely legal。
Ray 3: sudden intestate, family disputes. In the event of a sudden absence of a will, the spouses, children and parents are the first heirs by law. In the case of remarried families and elderly people, the property has to be broken down several times, and the children of brothers, sisters, step-children and even ex-wife may compete, and notarized for a year or two。
What is the "ninety-one split"? Three steps to dismantle
It is not a grey operation and is a legitimate combination of articles 209 (shared property), 366 (right of abode), 663 (obligatory gift) of the civil code, the core of which is “broad-headed, small-powered, double-insurance”:
First step: 90 per cent of the shares passed by birth, and taxes and fees were saved. The selection of immediate family members to grant or buy or sell a household is more cost-effective than inheritance: only 1-3 per cent of the contribution is taxed + 0. 025 per cent, and the 90 per cent share of the 2. 8 million house is 2. 52 million, or approximately $3. 78 million at 1. 5 per cent of the contribution tax, nearly 20,000 more than the notary of succession. Some of the cities are eligible to buy and sell “fifteen-single” homes and are also exempt from tax, as approved by the local tax window. The key is to make a 90% turn and keep 10% - these 10 per cent are “one vote veto” and children are sold, mortgaged, rented, and must be signed。
Step 2: registering the right to life-long residence and locking down the residence. If you have a 10% share, you can register your right of residence at the real estate register separately until your death. This is the civil code's “false talisman” for the elderly: even if the child sells the house, mortgages it, is executed by the court, the right of abode takes precedence over the right of ownership, the new landlord, the creditor cannot evict you, and the problem of “no place to live after the transfer” is completely resolved。
Step three: signing of a notarized binding gift agreement to prevent defeat. A written agreement is signed with the child stating that: 90 per cent of the grant is for maintenance obligations (monthly escort, medical expenses, protection from abuse, etc.); parents have the right to withdraw 90 per cent of the grant in cases of non-support, gambling drug addiction, malicious disposal of property, separation of property as a result of a change in marriage. Agreements must be notarized and be much more effective than private agreements。
What's the difference
Dimensions
Inheritance
Total grant (100 per cent)
Ninety-one split
Costs
Notary fees 1. 2-2%
1 - 3 per cent tax
1 to 3 per cent tax, close to 20,000 in inheritance
Parental control
No, move back
No, no, no, no
Keep 10%. The mortgage requires parental consent
Security of tenure
No, the kids have to move
Right of abode registration, permanent residence
Prevention of defeat/protection against change in marriage
Obligation agreement to revoke gift
Risk of inheritance disputes
High
Low (before birth)
Low (pre-existing shares)
Three heads up. Don't be blind
It's a good road, but it's not home-grown
Cat 1: 90 per cent of children with external debts may be targeted. Although parents retain 10 per cent + residency, the 90 per cent is theoretically the property of the child, and if the child is sued for external debt, the creditor may apply for the enforcement of this share. In practice, however, the auction is difficult to conclude (no one wants to buy a house with a permanent residence), but it is not absolutely safe. If the child is heavily indebted, the debt is treated before the transfer is considered。
Pipe 2: families remarry with caution and 10% share may be controversial. If one of the parents leaves first, the remaining 10 per cent will be left behind, which will be divided by will or legal inheritance after death - if remarry, the children, the current spouse may claim their rights. The solution would be to establish a notarized will in advance, making it clear that the 10 per cent would be for only the biological children, or 5 per cent, and that the core would be sufficient for a “one vote veto”。
Pipe 3: all formalities must be done and one less step made. The compulsory gift agreement must be notarized, the right of residence must be registered separately at the immovable property register, the share of the agreement must be written on the property certificate, and oral agreements and private agreements have no legal effect。
Finally, it is true that it is not only the market value, but also the sense of security of parents and the responsibility for the maintenance of children. The 9/11 law does not trust the child, but strengthens “trust” by law — the child has the big head to know that the parents are willing to give it, the parents have the small right to know that they are secure and both sides are strong. In the old words, “inheritance” is the word “inheritance”, such as “inheritance” in the case of property transfer, which makes you more passive than anything else。
Interactive today
How do you plan to move your property? Are you planning to wait for your inheritance, or are you planning on living? Has there been any trouble with too many children fighting over houses and the division of properties? Welcome to the comment section。
Disclaimer
This document is based on articles 209, 366, 663 of the civil code and the relevant rules for the registration of immovable property and is intended to provide for the transfer of legal property in general, and does not constitute a specific transfer proposal. There are differences in tax concessions, rates of notarization of inheritance, registration of the right of abode, and in some municipalities a tax exemption is granted to parents who sell their children to “five sole” properties, depending on the local tax and real estate register. The “ninety-one” ratio, which is a reference value, can be adjusted to eight-two-seven-three, depending on the family situation, with the core being that parents retain the right of veto. In the case of families with many children, remarried families, and children who are in debt, it is recommended that professional family lawyers or notaries should be consulted prior to the operation, so as not to reproduce the percentage in the document. The tax rates in the text are a sample estimate, not a commitment criterion. Compulsory gift agreements must be notarized, the right of residence must be registered separately for their entry into force, and oral agreements have no legal effect。
