Taiwan Estate Matters and Planning – General Information
Our firm is experienced in assisting clients with the handling of estates in Taiwan, including real property and other locally situated assets (e.g., bank accounts, securities). We frequently represent heirs who are not Taiwan nationals and guide them through the estate process, including tax filings, documentation, and transfer procedures. Our team also advises on estate planning in Taiwan to review whether local assets can be distributed to intended recipients, subject to statutory inheritance requirements.
Under Taiwan law, when a decedent leaves assets in Taiwan, the heirs are generally required to file an estate tax return with the National Taxation Bureau within six months of the date of death (with possible extensions upon application). The estate tax is assessed on the fair market value of the decedent’s Taiwan-situs assets, subject to certain exemptions and deductions if allowed, and payable before title to real property or other assets may be transferred. Taiwan’s estate tax is levied at progressive rates ranging from 10% to 20%, and payment may be made either in cash or, under certain conditions, by transfer of property.
Taiwan law provides statutory minimum inheritance rights for heirs having Taiwan nationality, including the spouse, children, and, in some cases, parents of the decedent. These heirs are entitled to a legally defined share of the estate, which cannot be overridden by a will unless formally waived. As a result, any estate plan must take these statutory requirements into account.
Wills in Taiwan are subject to strict formalities. The most common form is a holographic will, which must be handwritten in full, dated, and signed by the testator. Other valid forms include notarial wills prepared before a notary public and witnessed, as well as other special forms provided by law.
Although the overall estate process in Taiwan is time-consuming, our firm works to guide clients efficiently as possible through each stage. Once the estate tax is paid, we also assist clients with the subsequent transfer of assets to heirs, which must be completed with each relevant institution, including banks, the land office, and other custodians.
Please refer any questions to Lawrence Lee or Tanya Teng