Per the press release from the National Taxation Bureau(referring to the below link), it has stated that taxpayers who are required to transfer the title of a property before paying off the tax due for special reasons (e.g., wishing to sell a part of the estate to pay off the tax) may apply to the National Taxation Bureau to furnish a guarantee. Upon approval, a consent to transfer said certificate can then be issued, allowing the taxpayer to dispose of a portion of the property in advance
Actually, the press release from the National Taxation Bureau offers another perspective to consider: when it comes to passing on an inheritance, what kind of planning can be done to prevent specific heirs from reluctantly having to pay estate taxes out of their own pockets, or using their own assets as collateral to help other heirs complete the inheritance transfer?
People often reveal their true nature in such moments.
Therefore, to avoid these situations, setting aside funds for taxes seems to be a more sound approach. But where should these funds come from? Should they come from easily liquidated assets like publicly traded stocks, mutual funds, or even cryptocurrencies? Or perhaps from life insurance payouts? How much should be set aside for taxes? When is the best time to start planning for this? Issues like these are all important questions that parents and elders need to carefully consider if they want to create a more worry-free environment for the next generation.
Feel free to consult with LY CPA if you have any further matters you’d like to discuss
