We are all mortal. Realising we live with uncertainty all the time makes us appreciate the moment. However, when we become older, we possess many things, such as money, clothes, goods and even home ownership, so called property. Because of the uncertainty that it never tells when dying, it is very difficult to prepare for the death. Making a will was less common in Japan, because it is believed that will bring bad luck, but things have been changing these days, and Covid-19 crisis is accelerating these trends.
I am giving advice on how to make a will from time to time, but the most difficult to deal with is a tax issue. Long-term planning is essential, because there is no miracle solution.
The most commonly used estate planning is as follows.
- Making a contract with a life insurer
There is a life insurance deduction under inheritance tax system in Japan. Inheritance tax in Japan will not be payable within the following limits at the time of spouses death.
Tax exemption limit: JP¥5,000,000 x number of legal heirs
It can be a foreign affiliated insurance company, but it is only applicable for insurance companies which have licensed to sell their insurance products in Japan.
I will continue this theme, but I would like to emphasise that it is hard to distinguish the good from the bad. Building trust takes time, and advice should be specific to the client’s needs and circumstances.
司法書士堀明子 – HORIakiko –
司法書士 / ビジネスコンサルタント / ライフ・コーチ
Shiho-shoshi Lawyer / Business consultant / Life coach
Email: horiakiko@lawhelp4u.com
Tel: +81-(0)3-3249-1536 https://lawhelp4u.com/%e6%a5%ad%e5%8b%99%e6%a1%88%e5%86%85/%e7%9b%b8%e7%b6%9a%e7%99%bb%e8%a8%98/
Akiko Hori-Shihoshosi lawyer@Tokyo, Japan 