[Inheritance Division: Part 2] How to Create an Inheritance Division Agreement Without Fail, and Court Procedures When Discussions Reach a Deadlock
For those of you who understand the basics of inheritance division and are finally ready to proceed with the specific procedures.
In the first part of this article, we explained the basic rules, such as the requirement for the agreement of all heirs on the family register and the 10-year time limit.
In this article, for those of you wondering, "I understand the rules, but how do I actually create the documents?" or "What should I do if the discussions aren't progressing?", we will explain the practical steps and solutions in an easy-to-understand manner.
By reading this article, you will understand the following points:
3 steps for inheritance division that you should start today
How to create an "Inheritance Division Agreement" that is complete and error-free, and points to note (Article 907 of the Civil Code)
Mediation procedures to stop the time limit when discussions reach a deadlock (Article 904-3, Paragraph 1 of the Civil Code)
By correctly understanding the rules and ensuring each procedure is carried out, let's prepare to pass on assets to the next generation in a harmonious manner.
Start today! 3 steps to ensure the progress of inheritance division
To complete the inheritance division smoothly, it is important to prepare in advance rather than starting discussions immediately. First, please follow these three steps.
Step 1: Collect family registers to identify the "heirs"
As mentioned in the first part, an inheritance division that lacks even one heir is invalid (Article 907, Paragraph 1 of the Civil Code). First, collect all family registers of the deceased from birth to death, as well as the family registers of all heirs, to objectively confirm that there are no hidden heirs. (*However, the scope of collection varies significantly depending on the rank of the statutory heirs.)
Step 2: List all "inheritances (assets)"
If there are any omissions here, not only will it be necessary to redo the inheritance division agreement for the omitted assets, but if the assets are not accurately grasped in the first place, the premise of the inheritance division agreement itself will collapse. This is a crucial step, as omissions discovered later can lead to trouble among relatives.
As for investigation methods, for assets in private institutions such as financial institutions, insurance companies, and securities companies, there is no choice but to search for bankbooks or inquire individually with companies that the deceased likely had assets with based on their lifestyle while alive; it is necessary to obtain evaluation materials at the time of the start of the inheritance, such as balance certificates. Also, regarding real estate, if the municipality of the location is known, you can request a copy of the Nayose-cho (copy of the fixed asset tax ledger) from that municipal office, or utilize the "Real Estate Ownership Record Certificate System" at the Legal Affairs Bureau, which allows you to search for real estate registered under the name of the owner on a nationwide level.
Step 3: Hold discussions (inheritance division agreement) with all heirs
Once the heirs and assets are determined, hold discussions with everyone to decide who will receive which assets. It is not necessary for everyone to gather in one place; it is fine to form an agreement through phone calls, letters, emails, or various social media (such as LINE).
Note that debts are also subject to the inheritance division agreement, but creditor consent is required so that the division result is not disadvantageous to the creditors. If consent cannot be obtained, the division will be based on the statutory inheritance shares.
💡 Basics of practice: 4 methods of inheritance division
In proceeding with discussions, there are broadly the following 4 methods for inheritance division. This is a classification that is also fundamental in practice.
How to Create a Proper "Inheritance Division Agreement" and Important Rules
Once an agreement is reached by all parties through discussion, the details must be documented. This is called an "Inheritance Division Agreement" (Isan Bunkatsu Kyogisho).
This document serves as an important, officially recognized certificate when withdrawing deposits from banks or changing the title of real estate (inheritance registration).
While there are no strict legal rules on how to write it, it must satisfy the following elements to prove to the submission destinations—such as the Legal Affairs Bureau and financial institutions where procedures are actually carried out—that the inheritance division agreement was accurately and validly established.
Essential Elements for an Inheritance Division Agreement
Clear identification of the deceased and the heirs: In addition to the deceased's name, date of birth, and date of death, it is clearer to include their last address and registered domicile.
Identification of assets: Clearly state which assets are to be inherited by whom. For bank deposits, include the "bank name, branch name, account type, and account number"; for real estate, describe it exactly as it appears on the "Certificate of Registered Matters (Registry)."
Signatures and registered seals of all heirs: As proof of agreement, all heirs must write their addresses, sign by hand, and affix their "registered seal" (jitsuin). The date of creation is required here.
Attachment of seal registration certificates: To prove that the affixed seals are indeed the registered seals, keep a set of seal registration certificates for all parties.
Here is a template based on the orthodox method of dividing assets in kind.
There is no problem with creating the document on a computer, but it is practically desirable for each person to sign by hand. Create as many copies as there are heirs, and have each person keep one.
💡 Important practical note: Regarding the "expiration date" of supporting documents
While there is no expiration date for seal registration certificates attached to an inheritance division agreement for real estate inheritance registration, many financial institutions set their own expiration dates, such as "within 6 months of issuance."
The same applies to family registers (koseki), but by obtaining a "Certificate of Statutory Inheritance Information (List)" from the Legal Affairs Bureau, you can effectively proceed with procedures using the latest information.
Solutions when discussions fail: Family Court procedures
If you cannot reach an agreement no matter how much you discuss, or if there is a missing heir and you cannot obtain consent from everyone, it is difficult to resolve the matter between the parties alone. In that case, you will need to use Family Court procedures.
1. What is Inheritance Division Mediation (Isan Bunkatsu Chotei)?
This is a discussion procedure where a mediation committee (consisting of male and female experts) from the Family Court intervenes to listen to both sides and aim for an amicable agreement (Article 907, Paragraph 2 of the Civil Code). Since the parties do not need to face each other directly, it is easier to proceed calmly even if there is emotional conflict.
2. What is Inheritance Division Adjudication (Isan Bunkatsu Shinpan)?
If discussions do not conclude even after repeated mediation, the case automatically moves to a procedure called "adjudication." Here, a judge makes a comprehensive decision (order) on how to divide the assets in accordance with the law, based on the arguments made so far, submitted evidence, and family circumstances.
[Important] Relationship with the 10-year time limit
As explained in the first part, once 10 years have passed since the start of the inheritance, you lose the right to request favorable adjustments that take into account past caregiving efforts (contribution portion) or unfairness in lifetime gifts (special benefits) (Article 904-3 of the Civil Code).
However, if you have filed for this "inheritance division mediation" or "adjudication" with the family court before the 10-year period expires, you are excluded from the application of the time limit even if the 10 years pass during the proceedings (Article 904-3, Item 1 of the Civil Code). If it seems that time will pass without discussions progressing, being aware of this deadline and considering filing for mediation early is an option to protect your legal rights.
💡Reasons to consult a lawyer before filing for mediation
Regarding the filing of an inheritance division mediation (adjudication), many family courts have templates for the petition available at their counters, and since a mediation commissioner will intervene during the actual mediation sessions, it is not impossible to handle it on your own. However, I recommend consulting a lawyer before filing for the following reasons:
Existence of difficult circumstances: In many cases, by the time you consider mediation, you are already facing difficult circumstances that cannot be resolved through an inheritance division agreement.
Neutral position of the court: Since the family court and mediation commissioners maintain a strictly fair and neutral position, there is a possibility that an incorrect way of presenting your claims could lead to an unfavorable result for you.
Opposing party hiring a lawyer: By moving the stage to the court, there is a possibility that other heirs will hire their own lawyers.
Significance of objective re-examination: There is value in having a lawyer objectively re-examine whether mediation or adjudication is truly the only way to resolve the matter, including other potential solutions.
Summary: Understanding the correct procedures and mechanisms is the shortcut to a peaceful inheritance
In this second part, I explained the three steps to concretely proceed with inheritance division, the correct rules for creating an inheritance division agreement, and court procedures (mediation/adjudication) for when discussions do not reach a consensus.
To proceed with inheritance division without flaws, it is important not to neglect the basics, such as collecting family registers and identifying assets (Article 907 of the Civil Code). Also, even if a conflict seems likely to be prolonged, if you use family court mediation before the 10-year time limit, you can protect your right to have individual circumstances considered (Article 904-3, Item 1 of the Civil Code).
Although inheritance procedures may seem complex, by correctly understanding the mechanisms, you can proceed smoothly while avoiding trouble.
Why not take the first step for your family?
Inheritance procedures often require time and effort, from collecting necessary documents to creating them. In particular, there are times when specialized knowledge is required for tracing family registers and creating an accurate inheritance division agreement.
If you are worried about proceeding on your own or are having trouble because there are heirs you cannot contact, consulting a professional such as a lawyer or judicial scrivener is a powerful option before you leave things until the 10-year deadline arrives. Start by doing what you can, such as checking the bankbooks you have on hand or reaching out to relatives you can contact.
Note
The content of this article is based on information at the time of writing and is intended for general information purposes only. It does not constitute legal advice for individual cases. The author assumes no responsibility for any damages resulting from the use of the information in this article, so please consult a professional for actual legal procedures.