Question from a reader:
Please tell me about the transfer of inheritance shares. Currently, my unmarried brother has assets worth about 30 million yen. Assuming that my brother, who is in poor health, will pass away first, my sister and I are discussing this matter. We have agreed that my sister will inherit the bank deposits, and I will inherit the
securities account. Since I have also built up a considerable amount of assets, I am considering transferring my inheritance shares to my two sons, thinking about the increase in inheritance tax when I pass away. In this case, should I create a certificate of transfer of inheritance shares and proceed with the inheritance division agreement by transferring my inheritance shares to my two sons? Is it necessary to specify how the securities will be divided? Also, regarding inheritance tax, if my brother’s assets are 30 million yen and the legal heirs are my sister and me, will there be no inheritance tax if the total is below 30 million + 6 million + 6 million?

Considering the Transfer of Inheritance Shares and Inheritance Tax

Inheritance issues tend to become significant topics within families. As someone involved in the entertainment industry, I have heard various stories about inheritance from different people. Today, let’s consider the transfer of inheritance shares and inheritance tax based on a question from a reader.

What is the Transfer of Inheritance Shares?

First, let’s talk about the transfer of inheritance shares. The transfer of inheritance shares refers to the act of a legal heir transferring their share of inheritance to another person. In this case, you have the right to inherit your brother’s assets and can transfer a portion of that to your sons. It’s good to hear that discussions are progressing within the family, especially considering your brother’s poor health. When creating the inheritance division agreement, you will need to include details about the transfer of your inheritance shares.

Creating the Inheritance Division Agreement

The inheritance division agreement is an important document that clarifies how your brother’s assets will be divided. This document will specify that your sister will inherit the bank deposits and you will inherit the securities account. Additionally, it should also state that you are transferring your inheritance shares to your two sons. Specifically, it would be good to include the following details: 1. Information about the heirs (names and addresses of you and your sister) 2. Details of your brother’s assets (bank deposits, details of the securities account, etc.) 3. Details on how each heir will inherit the assets 4. The proportion of your inheritance shares that you are transferring (the portion for your sons) It is particularly important to specify which securities you are transferring and how much. This will help avoid any future disputes.

Questions About Inheritance Tax

Next, let’s consider inheritance tax. As you mentioned, if your brother’s assets are 30 million yen and the legal heirs are you and your sister, there is a high possibility that inheritance tax will not apply. In Japan, inheritance tax has a basic deduction for legal heirs, calculated using the following formula: Basic deduction = 30 million yen + (6 million yen × number of legal heirs) In your case, since the legal heirs are you and your sister, the basic deduction would be as follows: 30 million yen + (6 million yen × 2) = 42 million yen According to this calculation, if your brother’s assets are 30 million yen, it falls within the basic deduction, meaning no inheritance tax will apply.

The Future of Transferring Inheritance Shares

Now, regarding the transfer of inheritance shares to your sons, this is a very delicate matter. While it can be an effective means to reduce inheritance tax, it is also important to consider how your sons will handle that wealth in the future. It would be wise to have discussions in advance to ensure that your two sons can get along well. As a parent myself, I feel it is essential to discuss the division and use of assets among siblings early on. This helps prevent any assumptions like, “Dad gave me this, so I should get this.” Clear communication is necessary.

The Law in Reality

From a legal perspective, caution is needed when it comes to the transfer of inheritance shares. To establish a transfer, you must create a transfer certificate and ensure it meets legally valid formats. In some cases, it is advisable to seek professional advice. Particularly regarding inheritance and taxes, expert opinions can be very helpful. In my own experience in the entertainment industry, I often rely on the assistance of lawyers and tax accountants. The law can be complex, but incorporating expert opinions can reduce risks and allow you to proceed with confidence.

Conclusion

Issues regarding the transfer of inheritance shares and inheritance tax are very sensitive topics for families. However, by discussing matters thoroughly and preparing legal documents, it is possible to proceed smoothly. Especially, transferring assets with an eye toward the future can be seen as a precious gift to your family. It is important to move forward carefully so that your family can build a better future. While incorporating the opinions of legal experts, prioritize communication within the family. This is a step toward achieving a harmonious inheritance. Inheritance is a significant process that happens only once, so prepare well and deepen family bonds as you move forward. From my own experience, I understand how important family discussions are, so please ensure that you proceed with mutual understanding.