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Chinanews, Zhengzhou, Dec. 6 – In Zhengzhou, an increasing number of kids have become authorized1 owners of their family assets. A seven-year-old pupil is said to own three houses that are worth one million yuan under his name. A five-year-old kid has a villa2 valued at nearly two million yuan. In recent years, more and more young millionaires have emerged in Zhengzhou and according to a staff member working at Zhengzhou House Management Bureau, the number is still increasing by 3,000 every year, the Henan-based Dong Fang3 Jing Bao reported.
An official at Zhengzhou House Management Bureau said the phenomenon arose because of several reasons. The first reason is that some parents buy houses for their children in order to avoid inheritance tax. In recent years, China has constantly lifted the tax rate for house ownership transfer. Although China does not implement4 the inheritance tax at present, people fear that such tax might be levied5 at any time in future. So they take action now to avoid the possible rising transfer fees and the inheritance tax. Second, some parents buy houses for their children in the hope that their children can live a comfortable life in future. Nowadays, as most parents have only one child in the family, they tend to idolize the child. When they have the money, some parents might consider buying a house for their children as a birthday gift. Third, some parents put their housing assets under their child's name, thinking that in case the parents get divorced, there won't be any financial disputes between the couple. Fourth, some people, after getting remarried, want to give their house to the child they have with their new husband or wife, so that the stepchild won't argue for the house in future. Finally, some businesspeople put the houses under their child's name so that once they are in debt, they won't have to dispense6 with all their money to pay off the debt. Their child, in this case, will not need to endure any hardships despite their parents' difficulties.
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