10/02/2023 08:08

To distinguish between inheritance of property and the gift of property in Vietnam

To distinguish between inheritance of property and the gift of property in Vietnam

Both the act of inheritance and gift of property involve leaving your property to someone else. So what is the difference between these two? "Hoang Long-Binh Thuan, Vietnam"

Hello, Lawnet would like to answer as follows:

1. Similarities between inheritance of property and the gift of property

- All are regulated in the Civil Code 2015.

- Dispose of property, in order to transfer ownership of property from one person to another.

- Exemption from PIT and registration fees if given or inherited by husband and wife; biological father, natural mother, with a natural child; adoptive father, adoptive mother, with an adopted child; father-in-law, mother-in-law, with a daughter-in-law; grandfather, grandmother, with a grandson; grandparents, grandmothers, with grandchildren; brothers, sisters, and siblings together.

If not falling into the above cases, they must pay personal income tax of 10% and registration fee of 0.5% of the property value.

2. The difference between inheritance of property and gift of property

Criteria

Inheritance of property

Gift of property

Definition

Acceptance of inheritance occurs when a person receives the property of another person after that person dies according to a will or divides the inheritance according to law. 

A gift of property is an agreement between parties whereby the donor hands over his property and transfers ownership to the donor without asking for compensation, which the donor agrees to receive.

Subjects of benefits

- The heir is a person who is still alive at the time of opening the inheritance; was born, and was still alive at the time of opening the inheritance but became pregnant before the leaver died.

- If the heir under the will is not an individual, it must exist at the time the inheritance is opened.

The donor and the recipient must be alive.

Forms

- Receiving inheritance must be based on the will left behind;

- Division of estate according to law.

A contract for the transfer of property is required. 

Prescriptive periods

The heir inherits the deceased's property rights and obligations from the time the inheritance is opened—the time of the owner's death.

- Gift for real estate: effective from the time of registration; if no ownership registration is required, it will take effect from the time of property transfer.

- Gift of movable property: effective at the time the donor receives the property unless otherwise agreed; if the movable property is subject to registration of ownership, it shall take effect from the time of registration.

Procedures

- Inheritance procedures are carried out after the deceased leaves the property.

- The heirs who want to receive the estate must do one of the following procedures:

+ Declaration of inheritance according to the will

+ Legal declaration of inheritance; division of inheritance.

Carrying out the transaction while both parties are alive and jointly entering into a contract for the property.

Bui Thi Nhu Y
362


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