How to Protect Family Assets? Why I Use NISA Accounts Separately as a Couple

Yo, are you still sowing seeds today?
I'm Dis-Parch, the investment mafia of the field world.

I am investing 50,000 yen every month in my Rakuten Securities NISA account.
In addition to that, I am also investing 10,000 yen every month into my wife's NISA account.

The reason I do this is, to ensure my family won't be in trouble if something happens to me.

I am the pillar of the family, a broccoli🥦
If I fall, my precious broccoli family will collapse🥦
Precious broccoli. I want to protect it. Broccoli.🥦

🥦 The Old NISA Era and the Trigger for Name Diversification

Under the old NISA, the annual investment limit was set at 400,000 yen. Therefore, I invested 33,333 yen per month in my own account and the remaining 20,000 yen per month in my wife's account. To use the limit efficiently, I split the names and diversified.

🥦 “Risk Management Without Consolidating” Seen in New NISA

The new NISA started in 2024. The annual investment limit was raised to 1.2 million yen. Thinking there was no need to diversify anymore, I decided to invest 50,000 yen per month in my own account.

But then, I suddenly thought.

🥦 The Reality of “Having Money But Not Being Able to Use It”

For example, if I die, there is an inheritance procedure.
But what's even more troublesome is when I end up in a state where I can't regain consciousness.
In this case, no matter how much money is in my account, my family cannot easily withdraw it. This is the same not only for securities accounts but also for bank accounts.

In other words, the money is there, but it cannot be used.
This state is very serious for the family left behind.
When that happens, they are already mentally anxious, and on top of that, not being able to use the money becomes a significant source of anxiety.

Moreover, it would be better if there really was no money.
Having money but not being able to withdraw or use it is extremely frustrating. I would feel despair if it were me...

I call this the “Don Chinjao state”.
Don Chinjao is a character who appears in the pirate manga 'One Piece'. Originally, he had a hard head that could break through any thick ice sheet, but due to certain events, his head got dented.

Because of that, for many years he was unable to break the mountain of ice where the treasure slept, falling into a state where he could not obtain the treasure even though it was right in front of him.
It is truly “The money is there, but I can't use it!! Don Chinjao state!!”

🥦 Advance Measures to Prepare for Asset Management When a Family Member Becomes Unconscious

1. Diversify assets between husband and wife

   • Create accounts and NISA accounts for both parties, not just in the husband's/wife's name, and diversify investments by a certain amount.

   • In short, if one person's account becomes unusable, you can rest assured if you have diversified money into your own account.

2. Use a shared account

   • Create a bank account to be used jointly by the couple, and keep it in a state where both can withdraw using a family card or agent card.

   • However, ultimately, the account holder is only one person. Therefore, if something happens to the account holder, there is a risk that the account will be frozen, so it is not foolproof.

3. Conclusion of an Adult Guardianship Contract

   • A system where you decide in advance who will act as your agent if you lose your decision-making capacity in the future, while you are still capable of making decisions.

   • You create a notarial deed with a judicial scrivener. Also, when you lose your decision-making capacity, an adult guardianship supervisor is appointed to oversee whether the adult guardian is "doing their job properly," but you have to pay a fee for this. The market rate is said to be 5,000 to 20,000 yen per month, but honestly, that's a high hurdle...

Well, there are various other options, such as setting up a family trust.

"3. Adult Guardianship Contract" requires consultation with an expert and is a bit of a high hurdle...

It might be best to implement "1. Distribute assets between husband and wife" to prepare for the risk of account freezing, while also doing "2. Use a shared account."

However, currently, I am only practicing "1. Distribute assets between husband and wife."
I believe it is more realistic to proceed with asset management preparations gradually rather than aiming for perfection all at once.

※ A note on gift tax

When distributing assets between spouses, there is a risk of gift tax.
For tax purposes, moving a large amount of money to an account with a different name may be considered a "gift."
Amounts within 1.1 million yen per year are within the tax-exempt range. It is not a problem if you are distributing funds for living expenses or necessary capital, but you need to be careful. For example, I also have to be mindful of gift tax rules when distributing a portion of my income to my wife's account.

🥦 This is what I am doing in the end

• My account: NISA at an online brokerage, 50,000 yen per month

• Mama Broccoli's account: NISA at a regional bank, 10,000 yen per month

The reason for the difference in investment amounts is that Mama Broccoli originally started her NISA at a regional bank, and the trust fees are slightly higher compared to online brokerages.

Specifically, we have each chosen the following products.

• Wife's investment product: MSCI AC World Equity Index-linked (Regional Bank)
  - Trust fee: 0.198% per year

• My investment product: eMAXIS Slim US Equity (S&P500) (Rakuten Securities)
  - Trust fee: 0.08140% per year

My wife says, "Changing banks is a hassle" and "I don't want complicated procedures," so we are maintaining the status quo.
That is why we have differentiated the investment amounts, taking into account the difference in trust fees.

🥦 [Summary] Concentration of ownership is the greatest risk to family assets

• Even if you have money, you cannot use it if the account holder is incapacitated

• Concentrating ownership in either securities or bank accounts is a risk

• It is important to discuss this as a family and be aware of the need to split ownership

• A "shared account in the family's name" would be ideal, but it is currently difficult due to the system

• That is why the simple preparation you can do now—distributing ownership—is important

Honestly, if there were a "shared account under a family name," that would be the best option.

Because of the rule that limits account holders to one person, I have to make these kinds of preparations to hedge my risks. I'm sure there's definitely a need for this...
If you know of any "services similar to that," please let me know.

This time the theme was married couples, but in this aging society, the issues surrounding parents are also serious...
Recently, the aging in my broccoli circle has been intense. If things keep going like this, we might turn into cauliflower.

However, you shouldn't underestimate cauliflower. It has the strength of not losing much vitamin C even when boiled.

I've gone off on a tangent. My apologies.
Well then, I'll see you in the next article. Arrivederci.

*This article is based on the author's personal experience, and tax or legal judgments may vary depending on individual circumstances. For specific actions, we recommend consulting with professionals such as tax accountants or judicial scriveners.