[WSBAPT] WSBAPT Digest, Vol 83, Issue 39 Wrongful Death proceeds payment to Chinese

Wang, Yuping yupingwang at dwt.com
Wed Aug 25 15:45:56 PDT 2021 

Hi Eric

(a) transferring funds to beneficiaries in China is not complicated.  The beneficiaries can open US$ bank accounts in China at any China banks.  You can wire money to that bank accounts from the US.  China's foreign exchange control rules limit the beneficiaries' right to exchange the US$ into RMB, but this is not your problem.  Fyi, if the fund is more than US$ 50,000, the beneficiaries may ask you to wire in installments to reduce the amount of each installment to be below US$ 50,000.  Whether to agree or not, it is the call of the PR.  Even if the PR does not agree to wire in installments, the fund still belongs to the beneficiaries (China's foreign exchange control rules limit the right to convert the fund, do not limit the ownership of the fund), they can convert the US$ into RMB next year as each person got a fresh new quote each year.

(b)  I do not know the answer. Just certain information:  China and US have a tax treaty ( https://www.irs.gov/pub/irs-trty/china.pdf ) which does not specifically mention wrongful death compensation.  Per Art 21 (other income), if the compensation is treated as "income" under the treaty, it seems the compensation received by the beneficiaries shall be taxable in China.  Fyi, under the Chinese income tax laws, it is likely the compensation received by the beneficiaries is income-tax-free (China has no gift tax).   To be prudent, the PR may withhold certain taxes, the CPA can file a tax return to get it back later-on.

Yuping Wang | Davis Wright Tremaine LLP
920 Fifth Avenue, Suite 3300 | Seattle, WA 98104
Tel: (206) 757-8348 | Fax: (206) 757-7167
Email: yupingwang at dwt.com<mailto:yupingwang at dwt.com> | Website: www.dwt.com<http://www.dwt.com/>

Anchorage | Bellevue | Los Angeles | New York | Portland | San Francisco | Seattle | | Washington, D.C.




Message: 12
Date: Wed, 25 Aug 2021 17:00:09 +0000
From: Eric Nelsen <eric at sayrelawoffices.com<mailto:eric at sayrelawoffices.com>>
To: WSBA Probate & Trust Listserv <wsbapt at lists.wsbarppt.com<mailto:wsbapt at lists.wsbarppt.com>>
Subject: [WSBAPT] Wrongful Death proceeds payment to Chinese
beneficiaries
Message-ID:
<098D0346993E6A48B0D5F184C0AB002E8AC788 at SBS2011.sayrelawoffices.local<mailto:098D0346993E6A48B0D5F184C0AB002E8AC788 at SBS2011.sayrelawoffices.local>>
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Decedent has multiple children domiciled in China, Chinese citizens, no connection to the United States (their parent died while visiting the U.S.). They are entitled to shares of wrongful death settlement proceeds. Can anyone point me in the right direction for how to figure out (a) how to transfer funds to beneficiaries in China, and (b) if there are any tax withholding or other duties the PR has before transferring funds out of the country?

Sincerely,

Eric

Eric C. Nelsen
Sayre Law Offices, PLLC
1417 31st Ave South
Seattle WA 98144-3909
206-625-0092
eric at sayrelawoffices.com<mailto:eric at sayrelawoffices.com<mailto:eric at sayrelawoffices.com%3cmailto:eric at sayrelawoffices.com>>

Covid-19 Update - All attorneys are working remotely during regular business hours and are available via email and by phone. Videoconferencing also is available. Signing of estate planning documents can be completed and will be handled on a case-by-case basis. Please direct mail and deliveries to the Seattle office.

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Message: 13
Date: Wed, 25 Aug 2021 10:05:09 -0700
From: <wickertlaw at comcast.net<mailto:wickertlaw at comcast.net>>
To: "'WSBA Probate & Trust Listserv'" <wsbapt at lists.wsbarppt.com<mailto:wsbapt at lists.wsbarppt.com>>
Subject: Re: [WSBAPT] Wrongful Death proceeds payment to Chinese
beneficiaries
Message-ID: <02f401d799d3$5cec2cd0$16c48670$@comcast.net<mailto:02f401d799d3$5cec2cd0$16c48670$@comcast.net>>
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Please respond to the list. I have a beneficiary in China too.



Very truly yours,

Maureen A. Wickert, Attorney at Law



14900 Interurban Avenue South, Suite 255

Tukwila, WA 98168

Phone: 206-859-5502

Fax: 206-260-9005

<http://www.wickertlawoffice.com/<http://www.wickertlawoffice.com/>> www.wickertlawoffice.com<http://www.wickertlawoffice.com>

<mailto:wickertlaw at comcast.net> wickertlaw at comcast.net<mailto:wickertlaw at comcast.net>

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From: wsbapt-bounces at lists.wsbarppt.com<mailto:wsbapt-bounces at lists.wsbarppt.com> <wsbapt-bounces at lists.wsbarppt.com<mailto:wsbapt-bounces at lists.wsbarppt.com>>
On Behalf Of Eric Nelsen
Sent: Wednesday, August 25, 2021 10:00 AM
To: WSBA Probate & Trust Listserv <wsbapt at lists.wsbarppt.com<mailto:wsbapt at lists.wsbarppt.com>>
Subject: [WSBAPT] Wrongful Death proceeds payment to Chinese beneficiaries



Decedent has multiple children domiciled in China, Chinese citizens, no
connection to the United States (their parent died while visiting the U.S.).
They are entitled to shares of wrongful death settlement proceeds. Can
anyone point me in the right direction for how to figure out (a) how to
transfer funds to beneficiaries in China, and (b) if there are any tax
withholding or other duties the PR has before transferring funds out of the
country?



Sincerely,



Eric



Eric C. Nelsen

Sayre Law Offices, PLLC

1417 31st Ave South

Seattle WA 98144-3909

206-625-0092

eric at sayrelawoffices.com<mailto:eric at sayrelawoffices.com> <mailto:eric at sayrelawoffices.com>



Covid-19 Update - All attorneys are working remotely during regular business
hours and are available via email and by phone. Videoconferencing also is
available. Signing of estate planning documents can be completed and will be
handled on a case-by-case basis. Please direct mail and deliveries to the
Seattle office.



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Message: 14
Date: Wed, 25 Aug 2021 17:26:56 +0000
From: Dalynne Singleton <dalynne at glgmail.com<mailto:dalynne at glgmail.com>>
To: WSBA Probate & Trust Listserv <wsbapt at lists.wsbarppt.com<mailto:wsbapt at lists.wsbarppt.com>>
Subject: Re: [WSBAPT] Wrongful Death proceeds payment to Chinese
beneficiaries
Message-ID:
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I have a WD settlement with South Korean beneficiaries.
Those beneficiaries engaged an attorney in S. Korea who will take the proceeds and distribute.

Dalynne Singleton
Gourley Law Group
Snohomish Escrow
The Exchange Connection
1002 10th Street / PO Box 1091
Snohomish, WA 98291
360.568.5065
360.568.8092 fax
dalynne at glgmail.com<mailto:dalynne at glgmail.com<mailto:dalynne at glgmail.com%3cmailto:dalynne at glgmail.com>>
Website: www.glglawgroup.com<http://www.glglawgroup.com><http://www.glglawgroup.com/<http://www.glglawgroup.com>>
As we face the challenges presented by COVID-19, we have limited staffing in the office to maintain critical functions. Attorney/client meetings will be handled by teleconference or virtually whenever possible. Be assured that we will continue to advise & support our clients throughout this health emergency. If you would like to set a telephone conference, please call or email my paralegal theresa at glgmail.com<mailto:theresa at glgmail.com<mailto:theresa at glgmail.com%3cmailto:theresa at glgmail.com>> or dara at glgmail.com<mailto:dara at glgmail.com<mailto:dara at glgmail.com%3cmailto:dara at glgmail.com>>.
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From: wsbapt-bounces at lists.wsbarppt.com <wsbapt-bounces at lists.wsbarppt.com> On Behalf Of Eric Nelsen
Sent: Wednesday, August 25, 2021 10:00 AM
To: WSBA Probate & Trust Listserv <wsbapt at lists.wsbarppt.com>
Subject: [WSBAPT] Wrongful Death proceeds payment to Chinese beneficiaries

Decedent has multiple children domiciled in China, Chinese citizens, no connection to the United States (their parent died while visiting the U.S.). They are entitled to shares of wrongful death settlement proceeds. Can anyone point me in the right direction for how to figure out (a) how to transfer funds to beneficiaries in China, and (b) if there are any tax withholding or other duties the PR has before transferring funds out of the country?

Sincerely,

Eric

Eric C. Nelsen
Sayre Law Offices, PLLC
1417 31st Ave South
Seattle WA 98144-3909
206-625-0092
eric at sayrelawoffices.com<mailto:eric at sayrelawoffices.com>

Covid-19 Update - All attorneys are working remotely during regular business hours and are available via email and by phone. Videoconferencing also is available. Signing of estate planning documents can be completed and will be handled on a case-by-case basis. Please direct mail and deliveries to the Seattle office.



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