Risk and prevention of avoiding inheritance tax by giving the house to children in advance

Mr. Liu went south to Shenzhen in the mid-1980s. From the very beginning, I worked as a construction worker on the construction site to being a contractor myself, and then I set up a construction company with my friends. After years of hard work, Mr. Liu has accumulated a lot of wealth.

198 During the economic crisis, some real estate projects undertaken by Mr. Liu's company were unable to pay the project cost due to the lack of funds of the developers, which led to Mr. Liu's company finally accepting a large number of real estate as the project cost in the form of real estate discount. At that time, because he was worried that he would not receive any money after the completion of the project, Mr. Liu transferred all the shares of the company to his friends, took some properties himself and quit the company's operation.

In the following years, with the warming of the real estate market, the value of the real estate held by Mr. Liu also rose, and Mr. Liu became a real estate investor with hundreds of millions of assets as the real estate market rose.

A few years ago, Mr. Liu heard that the country would levy inheritance tax, and even heard that Shenzhen would be one of the pilot cities for inheritance tax collection. He is worried that the wealth he has accumulated for many years will be levied a lot of inheritance tax by the state when he passes it on to his son in the future. In order to prevent this from happening, after discussing with his wife, he decided to give most of the property to his son in advance to avoid the problem of inheritance tax in advance.

? It was decided, and soon Mr. Liu called his son to the real estate transaction department for transfer, and transferred most of the properties under his name to his son's name. At the same time, some of the transferred properties are also taken care of by the son, and the son rents out the proceeds.

What Mr. Liu never expected was that after the real estate was transferred to his son and he was asked to collect the rent, his son began to dawdle around and idled around with a few friends all day. More than a year later, Mr. Liu found that his son was infected with the bad habit of gambling. He plays everything, such as gambling, Mark Six Lottery, and even often goes to Macau to gamble. Ten bets and nine losses. After losing money, my son was chased by his creditors to pay back the money, so he sold several properties to pay off his gambling debts.

After confirming the news, Mr. Liu regretted it, so he forcibly grounded his son, hoping that he would get rid of his gambling habit and asked him to transfer the property back to his name. Who knows that my son agreed, and while Mr. Liu was away, he turned and left home. I changed my mobile phone after I left, and I can't get in touch. After a while, Mr. Liu found that the property was secretly sold by his son.

Seeing that his years of struggle and accumulation will be destroyed by his son's gambling addiction, Mr. Liu is anxious to cry. So I went to our lawyer through a friend and asked if I could get the rest of the property back through litigation.

Through detailed understanding, our lawyer found that Mr. Liu's wife also signed relevant documents when he transferred the property. According to the relevant laws and regulations, the property transfer behavior of Mr. and Mrs. Liu conforms to the legal requirements of the gift behavior, and the son actually accepted the gift, so the gift behavior is legal and effective. Mr. Liu hopes to get his house back through litigation, but the court does not support it. In other words, the ownership of these transferred properties belongs to Mr. Liu's son.

The lesson of Mr. Liu's case is very profound. This behavior of giving property to his son in order to avoid inheritance tax without taking preventive measures in advance led him to lose control of the property prematurely. In real life, it is not uncommon for Mr. Liu to do so. The starting point is to better pass on his wealth to the next generation, but to hand over the control of the property prematurely, once the children die and are unfilial, they will swallow the bitter fruit. The media will also report from time to time that some old people transfer their property to their children, and as a result, their children are unfilial and driven out of their homes.

In fact, if Mr. Liu Can takes precautions in advance when transferring the property, for example, he only transfers most of the share of the property to his son, and he still keeps 5% to 10%, then his son can't even sell the house privately. After all, Mr. Liu needs to be present when transferring the property, and even if inheritance tax is really levied in the future, the amount paid will not affect his wealth inheritance purpose.

Facing all kinds of uncertainties in the future, I wish the old people more wisdom to pass on their wealth to the next generation.