In our practice handling cross-border inheritance matters, we often encounter situations where heirs reside abroad and are unable to return to China to handle procedures in person. Due to distance and unfamiliarity with local policies, some important rights and benefits are easily overlooked.

One key point worth highlighting is this:
In addition to inheriting the deceased parents’ estate, there may also be funeral allowances and survivor benefits (bereavement compensation) payable by the deceased’s former employer.

If the deceased parent previously worked for a government authority, public institution, or state-owned enterprise in China, their former employer will typically provide a lump-sum payment to close relatives after death. In practice, this amount often ranges from several tens of thousands to over one hundred thousand RMB.

Many overseas heirs are unaware of this benefit. In fact, some only learn about it after being informed by me.
 

Important notes:

• Even if the children have acquired foreign nationality, they are generally still eligible to receive these payments as close relatives;
• Even if the deceased parent had obtained foreign nationality, as long as they retired from their original Chinese employer, their close relatives are typically still entitled to claim these benefits.

Application procedures for these payments are somewhat similar to inheritance procedures. Usually, the following documents are required:

• Death certificate
• Proof of kinship
• Power of attorney (if a lawyer is appointed to act on behalf of the heirs)

The specific process may vary from one employer to another. In some cases, documents can be submitted directly to the finance department; in others, multiple internal approvals and stamps may be required.

In addition, where there are multiple close relatives (such as a surviving spouse and children, or several children), the parties are usually required to reach an agreement and designate one representative to collect the payment. If no agreement can be reached, the employer may suspend payment until the dispute is resolved.

By David Gao, an international family lawyer in Beijing, China.
Email: gaohexin@163.com
Tel: 86 13611158067