Inheritance tax on my own money.

[sarge57]

I know it's complicated, and there are nested layers of IF, THEN, ELSE logic gates to negotite.

But, keeping the numbers simple, and leaving aside all other complications if possible....

If I have 100 yen savings and my Japanese gf has 100 yen savings and we get married. And one of us dies, then will the taxable starting point for inheritance tax be the 100 yen that the other person left, or the 200 yen that we had between us.

Basically do I get taxed for inheriting my own money ?

[RetireJapan]

No, because Japan does not have a concept of joint assets.

Your money is in your bank account, and her money is in hers.

[Tkydon]

.

[sarge57]

Retire ~ thanks for a clear concise answer

[sarge57]

Tykdon
thanks for replying, but you have immediately introduced complications. Your comments are qualified by "seems" which is not reassuring, and you have not addressed the specific question I asked.
Thanks anyway

[Tkydon]

.

[sarge57]

Hi Tykdon,
Thank you for your long and detailed reply.
I have looked into this and I have read about the 30 milllion allowance, the 6 million per beneficiary and the percentage taxation bands before. It is nice to have these details confirmed.
However, when I have read this information before I find myself unclear as to what figure they are subtracting the allowances from and therefore what figure the tax bands are arrived at.
I have also read about the 160 million spouse allowance. I can see how with an extra 30 million allowance this would result in 190 million, but I have not been able to unequivocally determine that both allowances can be added together. I do not see how you arrive at a figure near to 400 million but for now I would like t0o focus on my original question.
I find myself wondering whether my own money is counted as inheritance and included in the tax calculation, and hence my question.
The answer to this is buried in the detail of “Value the Estate” in your reply.
I would be grateful if you can confirm whether or not my own assets are included in the calculation or not.

Thanks again, Sarge

[sarge57]

Hi Retirejapan

OK so if Japan has no concept of shared assets, how do they treat property which is in joint names?

My wife is adamant that her parents house (in Japan) is jointly owned (2/3 by her father and 1/3 by her mother).

How do inheritance tax rules apply here?

Thanks,

Sarge

[RetireJapan]

Hi Retirejapan

OK so if Japan has no concept of shared assets, how do they treat property which is in joint names?

My wife is adamant that her parents house (in Japan) is jointly owned (2/3 by her father and 1/3 by her mother).

How do inheritance tax rules apply here?

Thanks,

Sarge

In that case the estate would be dealt with according to that legal division (so 2/3 of the value of the house would be in your wife's father's estate).

[sarge57]

In that case the estate would be dealt with according to that legal division (so 2/3 of the value of the house would be in your wife's father's estate).

So if the house was valued at 120 yen and my wife's mother dies, then the inheritance amount for tax for her father would be 40 yen.

But if her father dies the inheritance tax amount would be 80 yen for her mother.

Am I interpreting that correctly ?

Thanks as always