Is an annuity considered an inheritance?

[needhelp]

Does anybody know how Japanese tax authorities treat income to a Japanese beneficiary from a foreign (USA) retirement accounts?

My wife (Japanese) and I (US citizen), no kids, now living abroad, have most of our money for retirement in a TIAA retirement account (taxation is deferred until when you withdraw the money, which I have not done yet) in the USA. She is my sole beneficiary. The money in this account will be converted, at least in part, into an annuity that will be paid first to me, and then, after my demise, to her, until she dies.

If I die, will the annuity be considered some kind of gift or inheritance from me to her, unless she is out of Japan for 10 years? Does this mean that if she moves back to Japan in the next 10 years, every monthly payment of the annuity might be taxed in perpetuity at up to 55%?--in addition perhaps to income tax and local tax? Leaving her perhaps only 20 percent of what she ought to get?

Another issue is a joint account at a USA brokerage firm. If I die, will the amount in that account be considered some kind of gift or inheritance from me to her, unless she is out of Japan for 10 years?

Does anyone have any experience or information regarding such matters? or know somebody I might ask?

Thanks in advance.

[RetireJapan]

Does anybody know how Japanese tax authorities treat income to a Japanese beneficiary from a foreign (USA) retirement accounts?

My wife (Japanese) and I (US citizen), no kids, now living abroad, have most of our money for retirement in a TIAA retirement account (taxation is deferred until when you withdraw the money, which I have not done yet) in the USA. She is my sole beneficiary. The money in this account will be converted, at least in part, into an annuity that will be paid first to me, and then, after my demise, to her, until she dies.

If I die, will the annuity be considered some kind of gift or inheritance from me to her, unless she is out of Japan for 10 years? Does this mean that if she moves back to Japan in the next 10 years, every monthly payment of the annuity might be taxed in perpetuity at up to 55%?--in addition perhaps to income tax and local tax? Leaving her perhaps only 20 percent of what she ought to get?

Another issue is a joint account at a USA brokerage firm. If I die, will the amount in that account be considered some kind of gift or inheritance from me to her, unless she is out of Japan for 10 years?

Does anyone have any experience or information regarding such matters? or know somebody I might ask?

Thanks in advance.

I would say something like this is the most concerning possibility: https://www.asahi.com/ajw/articles/14844606 but may not apply to an annuity as you describe.

That 55% tax figure is only for amounts over 600m yen, by the way

https://www.retirejapan.com/blog/japane ... nce-taxes/

[needhelp]

Thanks for that link, that is what I feared. I means that I can never return to Japan with my wife, if she is to have any money after I die. Amazing how a government can discriminate so much against its own citizens.

After posting I realized that this issue was already largely taken up and explained in the earlier posting "Japan Deemed Inheritance Tax on Pensions/Annuities." Sorry, mea culpa.

I am still puzzled about how GOJ handles joint accounts, but maybe there is a posting about that somewhere too.