Which is better, gift or inheritance? What s the difference?

The gift of real estate is carried out before the death, and there are many advantages of handling the gift of real estate, and the transfer procedures can be handled immediately when the real estate is gifted, and the recipient can immediately obtain the real estate and exercise the power. The disadvantage of the gift during the lifetime is that the gift may need to pay more fees, the full amount of deed tax, stamp duty, and under normal circumstances, a lot of personal income tax expenses must be paid (but it should be noted that the gift of immediate family members, dependents or dependents, and legal heirs of the house inheritance is excepted).

The inheritance of real estate is handled after the death of the owner, and the advantage of handling real estate inheritance is that our country has not yet implemented inheritance tax, so the advantage of testamentary inheritance of real estate is that you can pay less tax, and only need to pay the property registration fee, which is charged on a case-by-case basis. The disadvantage of testamentary succession is that the heir must go through the relevant procedures and obtain the ownership of the house in accordance with the law after the death of the decedent.

The first point is that the gift of real estate actually requires a very complicated procedure, and the second point is that if it is inheritance, there is no need for procedures, and they are very simple, the difference between the two is actually one is to give and one is to inherit.

Home inheritance is more appropriate. If it is a property that is intended to be used for long-term self-occupation, it is most cost-effective to inherit the house and transfer the property, followed by the gift of the house. However, if the property is ready to be transferred again in the future, due to the high income tax to be paid by the gift transfer, it is more cost-effective to use the sale and purchase transfer than the gift transfer.

At present, there is no need for compulsory notarization for house inheritance, and only a small amount of registration fee and stamp duty is required for house inheritance. Article 14 of the Detailed Rules for the Implementation of the Provisional Regulations on the Registration of Immovable Property, which came into effect on January 1, 2016, provides that "if a party acquires immovable property by inheritance or bequest, and applies for registration, it shall submit death certificates, wills or agreements on the distribution of immovable property by all legal heirs, and materials on kinship with the decedent, etc., and may also submit notarized materials or legal documents that take effect in the form of arguments." Accordingly, the law regards notarized materials as an internal suffrage that applicants can choose to provide, rather than a "mandatory" submission.

What is the difference between a gift and a property inheritance?

1. The difference in time.

To realize the right of testamentary succession, there must be a legal will made by the deceased and the decedent has died, otherwise the testamentary succession relationship will not occur. The surviving parents are willing to donate the property to their children, which is not called inheritance. The inheritance obtained by the heir in accordance with the law must be the lawful property owned by the deceased during his lifetime or other lawful property rights and interests that can be inherited in accordance with the law.

Gifts, on the other hand, occur during the lifetime of the person.

2. Differences in taxes and fees.

If an individual donates real estate free of charge, he or she needs to pay the full deed tax (the current tax rate is 3%), and the house gift is subject to 20% of the individual income tax in most cases, but the gift to the immediate family, the dependents or dependents, and the legal heirs of the house estate are exempt from individual income tax.

There are two situations in which an individual pays deed tax if he inherits real estate through a will or statutory inheritance: for the legal heirs (including spouses, children, parents, siblings, grandparents, and maternal grandparents) who inherit land and house ownership as stipulated in the Inheritance Law, they do not need to pay deed tax; For non-statutory heirs who inherit the ownership of land and houses according to their wills, they need to pay deed tax, in addition to the property registration fee charged on a case-by-case basis.

Legal basisArticle 2 of the Provisional Regulations of the People's Republic of China on Deed Tax refers to the following acts:

1) the transfer of the right to use state-owned land;

2) Transfer of land use rights, including **, gift and exchange;

3) Housing sales;

4) Housing donation;

5) Housing exchange.

Article 3 The deed tax rate is 3-5%.

Summary. Hello dear! We'll be happy to answer for you.

Gift and inherit property, inheritance is better. Because inheritance transfer is the most money-saving: among the three transfer methods of sale, gift and inheritance, inheritance is the most economical and fast way, because China has not yet levied inheritance tax, and only need to pay notary fees for inheritance transfer, and other taxes and fees are all exempt.

Since inheritance can only be achieved in the event of the death of one of the parents, many parents do not consider this route for the time being. Of course, there are also parents who think far ahead and plan to write a will to leave the property to their children.

Hello dear! We'll be happy to answer for you. Gift and inherit property, inheritance is better.

Because inheritance transfer is the most money-saving: among the three transfer methods of sale, gift and inheritance, inheritance is the most economical and fast way, because China has not yet levied inheritance tax, and only need to pay notary fees for inheritance transfer, and other taxes and fees are all exempt. Since inheritance can only be achieved in the event of the death of one of the parents, many parents do not consider this route for the time being.

Of course, there are also parents who think far ahead and plan to write a will to leave the property to their children.

Legal basis: Article 14 of the Detailed Rules for the Implementation of the Provisional Regulations on the Registration of Immovable Property: "Where a party applies for registration of immovable property acquired by inheritance or bequest, it shall submit death certificates, wills or agreements on the distribution of immovable property by all legal heirs, and kinship materials with the decedent, and may also submit notarized materials or effective legal documents." Accordingly, the law makes notarized materials optional for applicants to provide, rather than mandatory for "mandatory" submissions.