probate

Normally, heirs to a deceased in Japan will not inherit any of the deceased’s estate until the probate process is completed.  This ensures that the process is conducted correctly and each heir receives a fair distribution.  However, it is possible to include language in a will that ensures an heir can immediately receive a particular asset without waiting for probate to finish.

In Japan, inheritance tax is charged against the beneficiary receiving the inheritance.  This is in contrast to other countries where the estate is taxed before being divided among the heirs.  Therefore, because the tax is charged based upon the asset each heir receives, the amount of tax each heir owns will necessarily be different.

Like most countries, Japan levies a tax on inheritance for estates probated in Japan.  This tax is progressive, so the amount of tax that is charged increases according to the value of asset received by each heir.  For example, the first 10 million yen received by an heir will be taxed at 10%, the amounts from 10 to 30 million yen will be taxed at 15%, etc., up to amounts over 600 million, which will be taxed at 55%.

In Japan, either legal scriveners or attorneys are licensed to help probate the estate of a deceased by contacting heirs, creating an asset list and dividing property.  However, only attorneys are licensed to appear in court in Japan.  Therefore, if a disagreement arises during the probate process, it is always better to have an attorney involved to ensure that the heirs’ rights can be protected even in litigation.