see in this article https://transferwise.com/au/blog/japan-inheritance-tax
I wonder what this means (below)???
Other exemptions are:
¥5 million for retirement allowance, per statutory heir
inheritance tax question
inheritance tax question
I was looking at the inheritance tax question (seems very vague to me) and I read there are a few ways to reduce your tax (??)
see in this article https://transferwise.com/au/blog/japan-inheritance-tax
I wonder what this means (below)???
see in this article https://transferwise.com/au/blog/japan-inheritance-tax
I wonder what this means (below)???
-
RetireJapan
- Site Admin
- Posts: 4782
- Joined: Wed Aug 02, 2017 6:57 am
- Location: Sendai
- Contact:
Re: inheritance tax question
That is an interesting question. I haven't seen that before.
English teacher and writer. RetireJapan founder. Avid reader.
eMaxis Slim Shady
eMaxis Slim Shady
-
captainspoke
- Sensei
- Posts: 1594
- Joined: Tue Aug 15, 2017 9:44 am
Re: inheritance tax question
" ¥5 million for retirement allowance, per statutory heir "
Yes, that's the first I've heard of that. And one question would be--is that in addition the to ¥6M that each kid would get, and in addition to the spouse exemption? That would be good news.
Also, I wonder if the retirement allowance has to be retained separately (isolated) or not? A retiree's strategy might be to let their previous investments lay untouched and still invested, while using a severance payment for their first 'bucket' (leaving it as cash for the initial years of retirement). In such a case, the actual severance money might be exhausted in the first ~10 years or so, and the retiree would then begin liquidating and drawing on long term investments. Unless there is some caution not to mix it with other funds, it might be hard to say just which funds were used, and when.
The article is less than specific about gifts to inheritors. I think any gift is fine as long as it's under the taxable threshold--and the person giving the gift remains alive. If the giver dies, then I think even gifts that (a) are below the tax threshold, but (b) are given within three years(?) of death need to be counted as a part of the to-be-inherited estate. In other words, you need to give your gifts before you know your health is failing.
Yes, that's the first I've heard of that. And one question would be--is that in addition the to ¥6M that each kid would get, and in addition to the spouse exemption? That would be good news.
Also, I wonder if the retirement allowance has to be retained separately (isolated) or not? A retiree's strategy might be to let their previous investments lay untouched and still invested, while using a severance payment for their first 'bucket' (leaving it as cash for the initial years of retirement). In such a case, the actual severance money might be exhausted in the first ~10 years or so, and the retiree would then begin liquidating and drawing on long term investments. Unless there is some caution not to mix it with other funds, it might be hard to say just which funds were used, and when.
The article is less than specific about gifts to inheritors. I think any gift is fine as long as it's under the taxable threshold--and the person giving the gift remains alive. If the giver dies, then I think even gifts that (a) are below the tax threshold, but (b) are given within three years(?) of death need to be counted as a part of the to-be-inherited estate. In other words, you need to give your gifts before you know your health is failing.