In recent years, more and more people have chosen to have their children even grandchildren as the owner of their newly purchased houses. “Kids landlord” is becoming more and more popular. The love from parents should never be questioned, but still there is another important reason for this fashion: they are also trying to prevent the future inheritance tax.

Most counties levy taxes on heritages. This may be realized by collecting stamp duty on the transfer documents of heritages; or by levying authentication tax on the will; or imposing normal income tax on the obtained heritage; or in most cases, using inheritance tax and gift tax.

The modern inheritance tax was first introduced in Holland. Now, there are about 50 countries around the world who has chosen this tax. Because inheritance tax are designed to adjust the allocation of property within the whole human society, it is also called ‘Robin Hood Tax’ in the western world.

Generally, there are three ways to levy inheritance tax: first, to tax on the total heritage before distribution; second, to tax on the obtained heritage of each inheritor after distribution; third, the mixed mode, to levy tax twice on both pre and post distribution stages.

Because of its adjusting character, most tax jurisdictions designed their progressive rate system for inheritance tax. This is quite similar to the situation of individual income tax. Also, there are many kinds of exceptions used in calculating the tax base of inheritance tax. All of these methods point the inheritance tax to the rich class, so that it may realize its very purpose. Now, even in the developed countries, the taxed group of inheritance tax only amounts at 1%~6% of the total death toll.

As far as China is concerned, though the ‘individual real name deposit account system’ was already adopted in 2000, this country still have many works to do before it can finally have its inheritance tax system. For example, our authority has little knowledge about properties, even real estate properties, owned by citizens. Moreover, China still lacks mature property declaration-registration system and property evaluation system.

Although we may still need a little patient to see our inheritance tax, it will come into existence in a developing society sooner or later.