RetireJapan

Greetings,

This is my first post. I apologize if anything is out of order.

I have been trying to get solid advice about what I have inherited.

I have two forms of inheritance.

The first is an annuity payout from my parents.

The second is a straight forward inheritance on their estate.

The former has me concerned as I cannot seem to get s straight answer from my research. My business related account recommended a professional as it is a bit complex.

The latter is more straightforward.

Are recommendations allowed in this forum?

If so, does anyone have a recommendation?

I am conversationally O.K. with Japanese. Living in Kanto.

KakisCracker wrote: ↑Sun Nov 10, 2024 2:31 am I have two forms of inheritance.

The first is an annuity payout from my parents.

The second is a straight forward inheritance on their estate.

The former has me concerned as I cannot seem to get s straight answer from my research. My business related account recommended a professional as it is a bit complex.

The latter is more straightforward.

Are recommendations allowed in this forum?

If so, does anyone have a recommendation?

I am conversationally O.K. with Japanese. Living in Kanto.

https://chester-tax.com/plan/global-inheritance_en.html

https://smartaxnagoya.wordpress.com/

Global Inheritance is rather complex.

When did the person die?

You have 10 months to file the First Pass Inheritance Tax Return. If you miss the 10 month deadline, you will be subject to Penalties and Interest.

The Estate has to be valued in its entirety. You then need to know the number of Statutory Heirs to work out the amount of the Basic Inheritance Tax Deduction in Japan.

See
https://retirewiki.jp/wiki/Inheritance_tax

The Total Amount of the portion of the Estate inherited by all Heirs and Beneficiaries in Japan is subject to the Basic Inheritance Tax Deduction in Japan.

The Basic Inheritance Tax Deduction is Y30M + Y6M per Statutory Heir

If there are two Statutory Heirs, then the Basic Inheritance Tax Deduction is Y30M + 2 x Y6M = Y42M

If the Total Amount of the portion of the Estate inherited by all Heirs and Beneficiaries in Japan is less than the Basic Inheritance Tax Deduction in Japan, then the inheritance is not subject to Inheritance Tax, and an Inheritance Tax Return is not required to be filed.

If the Total Amount of the portion of the Estate inherited by all Heirs and Beneficiaries in Japan is more than the Basic Inheritance Tax Deduction in Japan, then the excess is subject to Inheritance Tax, and an Inheritance Tax Return is required to be filed.

The Calculation is then rather complex, depending on the number of Heirs and Beneficiaries in Japan.

The Annuity is probably taxed not as part of the Estate, but as Economic Benefit acquired by a person from the death of a decedent, deemed to have been acquired through inheritance and treated as Inheritance - Minashi Shutoku Zaisan みなし取得財産. This is particularly complex.
It has to be valued at the current value of all future payments, and will be taxed on that total value.

Tkydon wrote: ↑Sun Nov 10, 2024 7:07 am
...You have 10 months to file the First Pass Inheritance Tax Return. If you miss the 10 month deadline, you will be subject to Penalties and Interest.
...

In practical terms, what this means is you should file a(n initial) return within that time frame (to the best of your knowledge about the estate as it will be settled). But then when the dust settles, so to speak, you file an amended return. (or returns)

There are some very knowledgeable folks over at this reddit sub, and I would encourage you to post this same query over there, so that you can collect whatever variety of suggestions there might be.