What is the priority of specific measures to be addressed for inheritance planning?

The priority of specific measures to be addressed for inheritance planning is as follows.
This is the order that many
experts commonly emphasize as important.

1. Current status analysis, identification of heirs, and asset investigation

• Understand all assets you possess (including cash, real estate, securities, and liabilities) to grasp the situation

• Confirm legal heirs through family registers and determine who will be the heirs

• If this is not done, the foundation for planning will not be solid, and effective measures cannot be established

2. Measures against inheritance disputes (family trouble)

• Consider creating a will to clearly leave your intentions

• Advance discussions about assets and inheritance among family members early on

• Clarify necessary adjustments for estate division, such as contributions or special benefits

• Preventing disputes and aiming for a peaceful inheritance is the top priority

3. Measures for inheritance tax payment funds

• Prepare funds in time for the inheritance tax filing and payment deadline (10 months)

• Secure payment funds by ensuring liquid assets or utilizing life insurance

• Protect assets with a reasonable financial plan

4. Measures to reduce valuation (tax saving)

• Utilize real estate for rental purposes or reorganize assets to lower the valuation

• Systematic use of lifetime gifting (such as the 1.1 million yen annual calendar-year gift)

• Preparation for the use of the special exception for small-scale residential land, etc.

• Implementing effective tax-saving measures with a basic knowledge of the tax system

5. Preparation for post-inheritance procedures

• Preparation and planning for inheritance registration (mandatory from April 2024, application required within 3 years)

• Preparation for name changes for savings and stocks

• Listing various procedures required within the statutory deadline and establishing an execution structure

Important Points

• This order prioritizes accurately grasping the current situation and minimizing the seeds of family trouble as much as possible.

• It is easy to prioritize only tax savings, but even if you save on taxes, it is meaningless if it leads to inheritance disputes.

• Preparation of tax payment funds is directly linked to the filing deadline, so delays are not permitted.

• Consultation sources such as tax accountants, judicial scriveners, and lawyers are ideal.

If you plan your inheritance measures with this priority in mind, you can minimize risks and achieve secure asset succession. Since the specific measures differ depending on your asset composition and family relationships, we recommend that you first
consult with an expert and start with a current situation analysis.

1. Current status analysis and identification of heirs

   • Accurately list your own assets (savings, real estate, securities, liabilities, etc.)

   • Confirm statutory heirs using family registers, etc., and finalize the list of heirs
     → Without this, a foundation for planning cannot be built.

2. Measures against inheritance disputes (family conflicts)

   • Create a will to clearly leave your intentions

   • Share intentions regarding asset division with family to prevent disputes in advance
     → This is the top priority because disputes occur regardless of the size of the assets.

3. Preparation of funds for tax payments

   • Since inheritance tax filing and payment must be done within 10 months, secure funds for tax payments

   • Identify highly liquid assets and consider using life insurance if necessary
     → An important measure to prevent a shortage of funds for payment.

4. Tax saving measures

   • Lifetime gifting (utilizing calendar year gifting or the inheritance tax settlement system)

   • Effective use of real estate and application of special valuation reduction provisions (such as the special provision for small-scale residential land, etc.)
     → Planning is necessary to maximize tax saving effects.

5. Preparation for various procedures

   • Inheritance registration (mandatory from 2024, application within 3 years)

   • Change of name for savings and stocks

   • Statute of limitations management for legal reserve of inheritance and claims for recovery of inheritance
     → Complete procedures at the appropriate timing without omissions.

Keeping the above priorities in mind, it is current status analysis and measures against family disputes that should be started first, followed by
tax payment funds and tax savings, and then proceeding to specific procedural preparations, which is
efficient and effective inheritance planning. It is best to proceed while
consulting with experts according to your specific situation.

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