Many parents in China assume that making a will is unnecessary if they have only one child:
"We have only one child. When we pass away, everything will naturally belong to our child."
However, this assumption overlooks an important feature of Chinese inheritance law: an only child is not necessarily the sole statutory heir of his or her parents.
Under Article 1127 of the Civil Code of the People's Republic of China, the first-order statutory heirs are:
· the surviving spouse;
· the children; and
· the parents of the deceased.
Therefore, when a person dies without a valid will, the surviving spouse, children and surviving parents of the deceased may all be entitled to participate in the distribution of the estate.

For this reason, parents in China should not decide whether to make a will merely by asking, "How many children do we have?" They should also consider:
· whether their own parents are still alive;
· whether they want their assets ultimately to pass entirely to their only child;
· whether they want the inherited property to remain the child's separate property;
· whether the family includes remarriage, stepchildren or other complicated relationships; and
· whether the family owns assets outside mainland China.
This article discusses inheritance under the laws of mainland China. Separate legal advice is required for assets or family relationships involving Hong Kong, Macao, Taiwan or other jurisdictions.

1. An Only Child Is Not Necessarily the Sole Heir

Consider the following example. A residential property is jointly owned by a married couple. The father dies without leaving a will. At the time of his death, the following family members are alive:
· his wife;
· his only child;
· his father; and
· his mother.
The inheritance process generally involves two steps.

Step One: Separate the Surviving Spouse's Share

Before the estate can be distributed, it is necessary to determine which part of the property belonged to the deceased.
If the apartment was marital community property and the spouses had made no different property arrangement, one half would generally be separated as the wife's own share. That half is not part of the father's estate.
Only the remaining half belonging to the father enters the inheritance process. This reflects the rule in Article 1153 of the Civil Code that, when jointly owned marital property is divided for inheritance purposes, the surviving spouse's share must first be separated unless the spouses agreed otherwise.

Step Two: Divide the Deceased's Share Among the First-Order Heirs

The father's half of the apartment would generally be inherited by four first-order heirs:
1. his wife;
2. his only child;
3. his father; and
4. his mother.
Under Article 1130 of the Civil Code, the shares of heirs within the same statutory order are generally equal, although the law allows adjustments in certain circumstances, such as where an heir has particular financial difficulties or has undertaken substantial support obligations.
In this simplified example, the only child would receive one quarter of the father's one-half share. In other words, the child would inherit only one eighth of the entire apartment.
The situation may become more complicated if the paternal grandparents subsequently die after the inheritance has commenced but before the estate has been divided, and they have not validly renounced the inheritance. Under Article 1152 of the Civil Code, the shares that they were entitled to inherit may pass to their own heirs, unless the will provides otherwise. Those heirs may include the deceased father's brothers and sisters - in other words, the only child's uncles and aunts.
As a result, an apartment purchased by the parents and intended to be left to their only child may, after several successive inheritances, become jointly owned by numerous relatives.
For families in China, the importance of a will is therefore not limited to deciding who should receive the property. A properly prepared will may also help prevent the estate from becoming fragmented, reduce the complexity of inheritance procedures and lower the risk of disputes among relatives.

2. When Should Parents of an Only Child Seriously Consider Making a Will?

2.1 When the Parents Want Their Assets Ultimately to Pass to Their Only Child

If the parents clearly intend their apartment, bank deposits, securities, company shares or other assets to pass entirely to their only child, a will is usually advisable.
Without a will, part of the estate may pass to the deceased's surviving parents or spouse under the statutory inheritance rules. Those assets may later pass again to other relatives through subsequent inheritance.
However, each spouse may dispose only of property that legally belongs to him or her. For example, the father may dispose by will of:
· his individually owned property; and
· his share of marital community property.
He cannot dispose of the portion legally owned by the mother. The same rule applies to the mother.
Accordingly, where most family assets are jointly owned by a married couple, it is generally more appropriate for the husband and wife to make separate wills, each dealing with his or her own assets and share of jointly owned property. A document stating simply that "all property belonging to both spouses shall be inherited by our child" may be ineffective to the extent that one spouse attempts to dispose of property belonging to the other.
The Civil Code permits a person to dispose of his or her personal property by will and to designate one or more statutory heirs as testamentary heirs. However, a will must reserve an appropriate share for any statutory heir who both lacks the ability to work and has no source of livelihood.

2.2 When the Parents' Own Parents Are Still Alive

This is one of the most frequently overlooked situations in Chinese families.
If a parent dies while his or her own parents are still alive, the grandparents are first-order statutory heirs together with the deceased's spouse and children.
Even when the grandparents do not wish to receive any part of the estate, they should normally make a clear written renunciation before the estate is distributed. Under Article 1124 of the Civil Code, an heir who fails to renounce the inheritance in writing before the estate is dealt with is generally deemed to have accepted it. Depending on the type of property and the procedure used to deal with the estate, notarization, litigation or additional documentary formalities may still be necessary in practice.
If a grandparent dies after becoming entitled to an inheritance but before the estate has been divided, the relevant share may pass to that grandparent's own heirs. This can bring the only child's uncles, aunts or other relatives into the chain of inheritance.
A will can significantly reduce this risk by clearly identifying the intended beneficiary.

2.3 When the Parents Want the Inherited Property to Belong Only to Their Child Personally

Many parents want their property to pass to their child, but they also want the inherited assets to remain the child's separate property rather than becoming marital community property shared with the child's spouse.
Under the default marital property rules of the Civil Code, property inherited by a spouse during marriage generally forms part of the spouses' community property. An important exception applies where the will expressly states that the property is to belong only to one spouse. In that case, the inherited property is treated as the separate property of that spouse.
A will may therefore include language such as:
"The above estate shall be inherited solely by my daughter, Zhang [full name], and shall constitute her individual property only. It shall not form part of the marital community property of Zhang [full name] and her spouse."
This type of clause may be especially important when the parents are concerned that inherited assets could be divided in the event of the child's divorce or could otherwise pass to a son-in-law or daughter-in-law through the child's marriage.
The wording should nevertheless be tailored to the particular assets and family circumstances rather than copied mechanically from a general template.

2.4 When Either Parent Has Remarried

Inheritance arrangements are often more complicated in blended families.
Potential family members may include:
· a current spouse;
· children from a previous marriage;
· children born outside marriage;
· adopted children;
· stepchildren who have formed a legally recognized relationship of support and maintenance with the stepparent; and
· the surviving parents of the deceased.
For inheritance purposes, the term "children" under the Civil Code includes children born within marriage, children born outside marriage, adopted children and stepchildren who have formed a relationship of support and maintenance with the deceased.
Where remarriage or a blended family is involved, relying solely on statutory inheritance may produce results that do not reflect the deceased's actual wishes. It is therefore generally advisable to prepare a will at an early stage and clearly address the rights of the spouse, children and other relevant family members.

2.5 When the Family Owns Assets in Different Countries

A family may own property in mainland China as well as overseas, including:
· real estate;
· bank accounts;
· insurance benefits;
· securities;
· company shares; and
· other investment assets.
Cross-border inheritance cannot always be handled effectively through a standard Chinese will template.
Under China's Law on the Application of Laws to Foreign-Related Civil Relations, intestate succession is generally governed by the law of the deceased's habitual residence at the time of death, while intestate succession to immovable property is governed by the law of the place where the property is located.
The formal validity of a will may be recognized if it complies with certain relevant laws, including the law of the testator's habitual residence, nationality or the place where the will was made. Questions concerning the substantive validity of the will and the administration of the estate may be governed by different applicable laws.
As a result, a will that is valid and effective for assets in mainland China may not automatically be sufficient for property located abroad.
Families with cross-border assets should consider coordinated estate planning based on:
· the location and nature of each asset;
· the testator's nationality and habitual residence;
· local probate and estate administration procedures;
· tax consequences;
· foreign exchange and remittance requirements; and
· whether separate but coordinated wills should be prepared in different jurisdictions.
Particular care is required to ensure that multiple wills do not accidentally revoke or contradict one another.

2.6 When the Parents Want to Benefit a Caregiver or Another Person Outside the Family

Some parents may receive most of their daily care from a relative, friend, domestic helper or professional caregiver rather than from their child.
If they wish to leave property to someone who is not a statutory heir, they may do so through a bequest.
Under Chinese law, a person outside the class of statutory heirs normally receives property as a legatee rather than as an heir. This distinction is important because a legatee must expressly accept the bequest within 60 days after learning of it. If the legatee fails to express acceptance within that period, he or she is deemed to have renounced the bequest.
A will containing a bequest should therefore clearly identify:
· the property being bequeathed;
· the full identity of the legatee;
· the method for notifying the legatee;
· the person responsible for keeping the will; and
· the executor or estate administrator who will implement the arrangement.
Where long-term care is involved, the family may also consider whether a legacy-support agreement, known in Chinese law as a yiyang agreement (遗赠扶养协议), would be more suitable than an ordinary will. Under such an agreement, a person or organization outside the class of heirs undertakes obligations relating to the individual's care and funeral arrangements in exchange for the right to receive specified property.

3. When Might Parents Decide That a Will Is Not Urgently Required?

Chinese law does not require every person or family to make a will.
If the parents fully accept the result produced by statutory inheritance and the family and asset arrangements are simple, they may decide that making a will is not immediately necessary.

3.1 The Family Relationships Are Simple

The urgency may be relatively low where:
· the parents have a stable marriage;
· the parents of both spouses have already died;
· there has been no remarriage;
· there are no adopted children or stepchildren;
· there is only one child; and
· there are no significant disputes among family members.
In such a situation, after one spouse dies, the estate would generally pass mainly to the surviving spouse and the only child under statutory inheritance.
However, the parents should still consider what will happen after the surviving spouse later dies. The first inheritance and the second inheritance should be considered together rather than in isolation.

3.2 The Family Owns Only a Small Amount of Clearly Owned Property

Where the family owns only a modest amount of savings or low-value movable property, ownership is clear and the heirs are in agreement, statutory inheritance may be sufficient.
However, deciding not to make a will does not mean that no inheritance procedures will be required.
The heirs may still need to produce documents such as:
· a death certificate;
· evidence of family relationships;
· marriage or marital-status records;
· property ownership documents;
· bank or securities account information; and
· written statements from the relevant heirs.
The absence of a will does not automatically make the inheritance process simple.

3.3 The Parents Fully Accept the Statutory Distribution

If the parents genuinely intend their estate to be shared among their surviving spouse, child and surviving parents in accordance with the Civil Code, there may be no need to make a will merely to change the proportions.
Statutory inheritance is the default distribution arrangement established by law for people who die without an effective will.
Nevertheless, the parents should also consider the effect of subsequent inheritance. Even if they are comfortable with their own parents receiving part of the estate, they should ask who may ultimately receive that property after the grandparents later die.

3.4 The Parents Are Healthy and the Family's Circumstances Are Currently Stable

Parents who are healthy, whose child is unmarried and whose assets remain simple may decide to postpone making a will.
However, wills are not relevant only to elderly people or people suffering from a serious illness.
In practice, making a will while the testator is physically and mentally healthy may make it easier to demonstrate that:
· the testator had full civil capacity;
· the will reflected the testator's genuine wishes;
· the testator acted voluntarily; and
· the testator was not affected by fraud, coercion or improper influence.
Chinese law imposes different formal requirements on handwritten, printed, witnessed, audio-video, oral and notarized wills. For example, a printed will requires at least two witnesses to be present throughout the process, and the testator and witnesses must sign every page and state the date. A document that fails to satisfy the applicable formal requirements may be declared invalid.
Therefore, "we do not need a will at present" should not be understood as "we will never need a will."
The family should review the issue whenever there is a major change, such as:
· the acquisition of valuable property;
· the child's marriage or divorce;
· the birth of grandchildren;
· the death of an elderly family member;
· remarriage;
· a serious illness;
· emigration or a change in habitual residence; or
· the acquisition of overseas assets.

Conclusion

For parents of an only child in China, the key question is not simply:
"How many children do we have?"
The more important question is:
"If our estate is distributed strictly under China's statutory inheritance rules, will the final result reflect our actual wishes?"
Under the Civil Code, the parents of the deceased rank together with the surviving spouse and children as first-order statutory heirs. An only child is therefore not automatically the sole heir of either parent.
A will is particularly important where:
· the grandparents are still alive;
· the parents want their assets ultimately to pass entirely to the only child;
· the parents want the inherited property to remain the child's separate property;
· remarriage or a blended family is involved;
· the family owns cross-border assets; or
· the parents wish to benefit a caregiver or another person outside the class of statutory heirs.
A will should not be viewed as a pessimistic preparation for death. Properly understood, it is a practical arrangement for protecting family members, preserving property and reducing future uncertainty.
Because the validity and effect of a will depend on the testator's capacity, the ownership of the assets, the form of the will and the specific family circumstances, families with substantial, disputed or cross-border assets should obtain individualized legal advice rather than relying solely on a general template.

Disclaimer: This article provides general information on the laws of mainland China and does not constitute legal advice for any particular person, family or estate.