RetireJapan

RetireJapan wrote: ↑Tue Aug 20, 2024 1:09 pm It sounds like you are going to inherit less than the tax-free amount (30m + 6m*3(4?) statuatory heirs) so you don't need to do anything with regards to Japanese taxes.

shadows wrote: ↑Wed Aug 21, 2024 2:43 am... Or perhaps even try to set up a trust of sorts to help structure the inheritance in a way to reduce tax burdens. ...

shadows wrote: ↑Wed Aug 21, 2024 3:00 am

RetireJapan wrote: ↑Tue Aug 20, 2024 1:09 pm It sounds like you are going to inherit less than the tax-free amount (30m + 6m*3(4?) statuatory heirs) so you don't need to do anything with regards to Japanese taxes.

Hi Ben thanks for the reply, *3. Perhaps you're correct however since my numbers given above are just an estimate I'm just trying to get ahead of the situation. It may or may not be below the inheritance tax threshold. I'm just trying to get ahead of the situation for the not to distant future and share my situation on your cool blog.

shadows wrote: ↑Wed Aug 21, 2024 3:00 am Hi Ben thanks for the reply, *3. Perhaps you're correct however since my numbers given above are just an estimate I'm just trying to get ahead of the situation. It may or may not be below the inheritance tax threshold. I'm just trying to get ahead of the situation for the not to distant future and share my situation on your cool blog.

captainspoke wrote: ↑Wed Aug 21, 2024 3:42 am

shadows wrote: ↑Wed Aug 21, 2024 2:43 am... Or perhaps even try to set up a trust of sorts to help structure the inheritance in a way to reduce tax burdens. ...

Trusts are not used here. They are sometimes referred to as being 'transparent' to the NTA, which 'sees thru' the trust. As an example, if someone does have a trust that is structured so that money is distributed on a later date (or dates)**, the NTA here sees the beneficiary/ies of the trust as having received the full amount immediately.

**a case might be where a child or children would receive certain portions of money from a trust on certain birthdays--on turning 25, 30, and so on.

RetireJapan wrote: ↑Wed Aug 21, 2024 4:25 am

shadows wrote: ↑Wed Aug 21, 2024 3:00 am Hi Ben thanks for the reply, *3. Perhaps you're correct however since my numbers given above are just an estimate I'm just trying to get ahead of the situation. It may or may not be below the inheritance tax threshold. I'm just trying to get ahead of the situation for the not to distant future and share my situation on your cool blog.

I guess I mean that either you are under the tax free amount and don't have to do anything, or over it and need to submit a tax return/pay what you owe.

There are no technical workarounds that allow you to avoid paying tax.

shadows wrote: ↑Wed Aug 21, 2024 2:43 am Thanks beanhead, I now see your valid point. The source of the funds whether domestic or foreign is not the determining factor for Jpn inheritance tax. So, what matters is that me as a resident of Jpn, am receiving and benefiting from the inheritance within Jpn, correct? So basically having an offshore account might not be enough to avoid Jpn inheritance tax. Jpn tax laws sucks. Having 4 kids here in Japan perhaps there's a Jpn gift tax reg. that can vary from inheritance tax? Or perhaps even try to set up a trust of sorts to help structure the inheritance in a way to reduce tax burdens. Anyone know a good Jpn tax accountant in Osaka?