The house must be a very important part of the composition of modern family assets. Although the real estate market in the past two years has not been particularly good, after more than 20 years of development golden cycle, the rise in housing prices is still very amazing. If you have a house in a first- or second-tier city now, then your family assets are millions of dollars in minutes.
At the same time, the house is real estate, and there is no doubt that if this asset is gone, it must be left to our children, which involves a key issue. If you want to leave the property to your children, dispose of it while you are alive or inherit it after your death, which is more cost-effective?
1. Inheritance after death
Let's start with the normal process of inheritance. That is, when the owner of the house passes away, the children or other relatives who have the right to inherit directly go through the relevant procedures. Friends who have learned about it may know that this way, the process is very complicated. The documents required in the process include the inheritance itself, that is, the application for inheritance, the death certificate and notarial deed of the deceased, etc.
In addition to these, the house itself also needs to be inherited by the corresponding documents, this category includes title deeds, valuation forms, etc. Once you have all the materials ready, you can apply for the inheritance, but it is not completely free. Aside from the above-mentioned expenses such as notary fees incurred in the process of issuing various documents, the most important part comes from the transfer of ownership.
Everyone knows that when we buy a house, we need to pay deed tax. The same is true for inheriting a house. This fee varies depending on the valuation of the property, but is usually charged at 1%-4% of the total price of the property. At the same time, for the heirs, whether the house is the first home or not will also affect the amount of deed tax paid, which may change according to the current relevant laws and regulations of real estate.
In addition, the size of the house and the nature of the land also determine the amount of money to a certain extent. Many people don't understand that it costs money to inherit their parents' house, so some people have other ideas. If the parents gave the house to their children while they were alive, would it save money?
2. Deal with it while you are alive
So let's see if this method incurs costs, and how much it will incur.
To be clear, a gift is not free, but can be more expensive. This is because the gift of a house is essentially a transfer of property, and when it comes to this issue, we can guess that there is an important expense that arises, which is personal income tax.
Similar to this kind of income, according to the regulations, it is subject to 20% personal income tax. Moreover, the price of the house is not determined by the donor or the donee of the house, but is usually calculated according to the market price at the time. For example, if a house with a market value of 2 million yuan is gifted, then the personal income tax may be 400,000 yuan.
In addition, the notary fees and transfer fees required for the above-mentioned inheritance should not be less.
Looking at it this way, the price of handling in the world is really very high. However, in fact, there is also a special situation in the world, which may be the most cost-effective relatively speaking, that is, the transfer of property rights by way of sale.
We all know that buying and selling a house is a market act, and inheritance by buying and selling is similar in principle, except for the cost of buying a house, there are no additional costs.
Of course, this price should not be too low as the market price at that time, otherwise it may cause trouble in the transfer. If the house is used by the children for their own use, you can choose this method, but if not, you also need to pay attention to the personal income tax and property VAT when the subsequent sale is made.
In summary, the choice of giving while alive is the most expensive way. On the contrary, inheritance looks more cost-effective. If you are worried that the inheritance process is too cumbersome, you can also use the method of buying and selling a living house to achieve real estate inheritance.