Is an annuity considered an inheritance?
Posted: Sun Apr 21, 2024 1:19 pm
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.
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.
