Children's Accounts - Deposits and Gift Tax

Deep Blue
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Re: Children's Accounts - Deposits and Gift Tax

Post by Deep Blue »

I really suspect OP is worrying about nothing. If the NTA only challenges 300 cases a year (out of 1.6 million deaths) then it’s clear the bar is very high and worrying about gifts under the 1.1 million yen limit is like worrying about being hit by lightning.
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adamu
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Re: Children's Accounts - Deposits and Gift Tax

Post by adamu »

Apparently the odds of being struck by lightning in a lifetime are in the 1:10,000s :shock:

Happy to contribute to the discussion 🌩️
captainspoke
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Re: Children's Accounts - Deposits and Gift Tax

Post by captainspoke »

adamu wrote: Sun Apr 21, 2024 2:28 pm Apparently the odds of being struck by lightning in a lifetime are in the 1:10,000s :shock:

Happy to contribute to the discussion 🌩️
Had to google that...
Yossarian
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Re: Children's Accounts - Deposits and Gift Tax

Post by Yossarian »

There's quite a bit of NTA paranoia on that subreddit. Seems everyone thinks NTA is checking everything everyone does.
Tsumitate Wrestler
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Re: Children's Accounts - Deposits and Gift Tax

Post by Tsumitate Wrestler »

I am certainly not changing my approach radically.

I simply will:

1. Get a signed contract between my mother-in-law and children. My mother-in-law takes this stuff pretty seriously, lol.

2. Inform my child upon taking over the account of the outside chance of complications, and arm them with a copy of said contract.

That is it. However, I do find #1, which is discussed on many many Japanese tax blogs, pretty funny.
sutebayashi
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Re: Children's Accounts - Deposits and Gift Tax

Post by sutebayashi »

Tsumitate Wrestler wrote: Mon Apr 22, 2024 12:43 am I am certainly not changing my approach radically.

I simply will:

1. Get a signed contract between my mother-in-law and children. My mother-in-law takes this stuff pretty seriously, lol.

2. Inform my child upon taking over the account of the outside chance of complications, and arm them with a copy of said contract.

That is it. However, I do find #1, which is discussed on many many Japanese tax blogs, pretty funny.
I was reading a sozokuzei book about this again, and a sample contract for this situation was one of the things in the book.

The first clause in the contract template says that the money will be gifted by such and such a method,
The second clause that says that the kid’s parents will manage the money until the child comes of age.
(The parents and giver sign, not the kid)

I might be doing something like this myself, but with my non-Japanese relative, but if the gist of the agreement is written in English I would presume it should be ok.
Last edited by sutebayashi on Wed May 29, 2024 4:53 am, edited 1 time in total.
sutebayashi
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Re: Children's Accounts - Deposits and Gift Tax

Post by sutebayashi »

deleted duplicate post
Last edited by sutebayashi on Wed May 29, 2024 4:53 am, edited 1 time in total.
Tsumitate Wrestler
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Re: Children's Accounts - Deposits and Gift Tax

Post by Tsumitate Wrestler »

sutebayashi wrote: Tue May 28, 2024 7:45 am
sutebayashi wrote: Tue May 28, 2024 7:44 am
Tsumitate Wrestler wrote: Mon Apr 22, 2024 12:43 am I am certainly not changing my approach radically.

I simply will:

1. Get a signed contract between my mother-in-law and children. My mother-in-law takes this stuff pretty seriously, lol.

2. Inform my child upon taking over the account of the outside chance of complications, and arm them with a copy of said contract.

That is it. However, I do find #1, which is discussed on many many Japanese tax blogs, pretty funny.
I was reading a sozokuzei book about this again, and a sample contract for this situation was one of the things in the book.

The first clause in the contract template says that the money will be gifted by such and such a method,
The second clause that says that the kid’s parents will manage the money until the child comes of age.
(The parents and giver sign, not the kid)

I might be doing something like this myself, but with my non-Japanese relative, but if the gist of the agreement is written in English I would presume it should be ok.
Would you kindly throw up a snap of that sample contract?
sutebayashi
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Re: Children's Accounts - Deposits and Gift Tax

Post by sutebayashi »

Tsumitate Wrestler wrote: Tue May 28, 2024 9:13 am Would you kindly throw up a snap of that sample contract?
Let me see if I can get this to work:

Image
(set to be deleted 6 months from today, sorry)

I can't remember exactly which book this was from (I took a bunch of photos of interesting pages before returning it to my local library), but I think it was a book about surviving inheritance tax audits :)
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