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Jack Lowe2023-10-11 05:03:222025-12-23 10:08:09The Great Wealth Transfer and its Effects on Expats in JapanInheritance Tax Planning
One generation to the next.
Who gets What?
If you’re living abroad, you will likely have accumulated assets in various jurisdictions throughout your lifetime. When you pass away, things are likely to get very complicated and costly for your loved ones if there have been no plans or preparations made to pass on your assets. Estate planning is vital for foreign residents in Japan, where inheritance taxes are high, and Wills and Trusts‘ treatment is different compared to other countries.
Having a structured and legally recognized estate plan will allow you to organize and decide how your wealth will be distributed when you pass away. It will also remove unnecessary emotional stress and financial burden from your loved ones.
Our Advice
Talking with one of our advisors will give you a better understanding of what makes the most sense for you and your family, whether it is a local Will, an international Will, a Trust, a Foundation, or all of the above. We can provide the advice and expertise you need to ensure that your assets are distributed to your children, surviving spouse, and grandchildren in a way that reduces taxes as well as time and expense for your family.
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Frequently Asked Questions
When should I start thinking about estate planning?
People should start thinking about estate planning once they have dependents who rely on them financially. As your assets and wealth grow, having a clear plan becomes even more important. For those living or working abroad, estate planning is an essential part of a sound financial strategy, ensuring your wishes are protected across different legal and tax systems.
Does Japanese inheritance tax apply to foreigners living in Japan?
Yes. Foreign residents in Japan can be subject to Japanese inheritance tax, depending on their residency status and where their assets and heirs are located. Japan may tax worldwide assets in some situations, so it’s important to review your circumstances to understand your potential exposure and plan accordingly.
What assets are subject to Japanese inheritance tax?
Japanese inheritance tax can apply to both Japan-based assets and, depending on your residency status, assets held overseas. This may include property, bank accounts, investments, and other financial holdings. The scope of what is taxed varies by individual circumstances, so it’s important to review your situation to understand which assets may be included.
How high are Japanese inheritance tax rates?
Japanese inheritance tax rates are progressive, ranging from 10% to 55% depending on the estate’s value and the relationship of the heirs. Various deductions and allowances can significantly reduce the taxable amount. Reviewing your situation with an advisor helps determine which rates may apply and how to plan effectively to mitigate potential tax exposure.
Can you help with Inheritance Tax Planning in Japan?
Yes. We can help you understand your potential inheritance tax exposure in Japan and explore planning strategies suited to your circumstances. Our advisors work with specialists to design tax-efficient solutions that align with both Japanese regulations and your broader estate planning goals.

