What It Means to Inherit the Family Business

I first started thinking seriously about "inheriting the family business"
when I was a senior in high school.

One day, while preparing for university entrance exams and thinking about which schools to apply to, it suddenly occurred to me.

I have an older brother and an older sister. I am the youngest of three.
If anyone were to inherit the family business, it would naturally be me or my brother.
I asked my brother, who is 10 years older than me (he was 27 at the time).

My brother's answer was simple.

In our family, "inheriting the family business"
meant "taking over the farm."
For my brother, who was already working as a civil servant at the time,
farming did not seem to be an option.

At that moment, it felt like our roles among the siblings had been decided,
with the natural conclusion being, "Then I guess I'll take it over."

Me working locally and the farming left entirely to my parents

After that, I went to a university in Nagoya and returned home to find a job.
However, balancing work and farming was more difficult than I had imagined,
and the reality was that I left all the farming to my father and mother.

Then, when I was in my early 40s, my mother passed away.

The farming was left in my father's hands alone.
Hoping to be of some support, I started helping with farm work,
even if it was only for a few days a year.

My father's injury and the heavy reality of joint liability

One day, my father fell into an empty irrigation ditch next to the rice field.
He broke his hip and was no longer able to do farm work.

At that moment, I thought to myself:

That was when I brought up the topic of "inheritance".

In fact, by that time, I had already become a joint guarantor for a 200 million yen debt.

The breakdown consisted of an apartment building my father had constructed for inheritance tax purposes, and the mortgage on the detached house where my brother lives. My mother had been the primary joint guarantor while she was alive, but now I am the sole joint guarantor.

In other words—
if my father passes away, I will be the one to shoulder everything.

Consulting with a Tax Accountant and the Weight of "Reality"

I took my father to visit a tax accounting firm in the prefectural capital that advertised itself as being "strong in inheritance matters."

What they told us there was,

...Huh? Where on earth would that kind of money come from?

Furthermore, the fixed asset tax is approximately 3 million yen every year.

In short, inheriting the house was synonymous with "shouldering a massive debt."

Who would want to inherit a house like that?
Honestly, I didn't want to either.

"No money, but plenty of land": A common farmer's dilemma

No money. But, plenty of land—.
I think there are many farmers like that.
My family is a classic example.

I asked the tax accountant,

The answer that came back was immediate.

The reason was clear.

And so, inheritance planning began.

Thus, the "inheritance planning" between my father and me began in earnest.

This story is still ongoing.

However, it was an experience that made me realize that "inheriting a family home" is not merely an act of filial piety or the preservation of tradition, but rather

a resolve to face reality.

Please enjoy our past articles as well.