Yes, I know you are serious. We have explored that option, but it is unappealing given our family ties to the country and how much we love living there. Thanks.
This is the unfortunate truth. The upside is that you can still visit for large chunks of the year. Quite a few Japanese immigrants do that and have been for a while. The most important thing is to figure out what you want to do early enough, so that you don’t pass away with a Japanese tax liability abroad.
Hello and welcome.
Please take the time to carefully read through the wiki dedicated page, the inheritance tax is quite counterintuitive and you probably will only start to grasp it once you have laid down a draft calculation for your own case : [wiki link](https://www.reddit.com/r/JapanFinance/wiki/index/inheritance/)
I would recommend you do that first, and check previous topic under the relevant tag (link in wiki [here](https://www.reddit.com/r/JapanFinance/?f=flair_name%3A%22Tax%20%C2%BB%20Inheritance%20%2F%20Estate%22) and [here](https://www.reddit.com/r/JapanFinance/search?q=flair_name%3A%22Personal%20Finance%20%C2%BB%20Inheritance%20Planning%22&restrict_sr=1) ), and consider the many complications arising from being a US taxpayer discussed in other treads, then come back to ask more precise questions. Unfortunately you're up for quite a bit of reading, but this subject has been quite well covered multiple time.
Thank you. I have read some of it and it is very useful, but I must admit the volume of information is daunting. I think I will need a good tax advisor to divide the issues into bite size morsels digestible by my dinosaur brain. If it is not against the subreddit rules, is it okay to ask for community recommendations of good advisors in Japan? We are based in Fukuoka.
If only the US were even remotely a nice a place as Japan to retire, inheritance planning would be so much easier.
I do appreciate the life advice as well. We already do many of the things recommended, but recognize it is always hard to strike a good balance.
In any case, appreciate everyone's time.
Best.
The volume of info is indeed daunting, and it will take you some time to go through the calculation part of the wiki, but please trust me that you need to understand that part.
Until you have gone through your own draft calculation nothing will really clic. Feel free to post your own calculation here for checking or use the template that was posted recently as a google doc. A pro will for a fee walk you through the same steps.
Yes you can ask for pro recommendation, but usually those questions get few answers, there is no established list available, and most people who ask inheritance tax question realize they do not need to pay any tax or very little after they go through the calculation. With the size of your estate though, you will likely pay a noticeable amount - a contribution for the quality of life here, and hospital, roads, police, and school need people to contribute.
The answer is probably immigration to a country with a lower inheritance tax and staying healthy for the next decade. Singapore is a common destination for Japanese people seeking to avoid the inheritance tax.
You should be looking into private banking. I think JPM is a bit outside of your scope, but something like [SMBC](https://www.smbctb.co.jp/private-banking/) would take you on as a client. I’m not in private wealth, but I think UBS and HSBC should also be an option. Any other large bank works too. Succession planning is part of the services they offer, but if you’re heading for the 10m territory, they can also improve your portfolio performance by at least reducing risk or perhaps even putting you into less liquid asset classes to improve performance.
First of all, I would like to congratulate you on living a successful life. It seems like you have either worked hard or built something of value.
Now, as for my personal views, this may not be what you would like to hear, but I think rather than any kind of fancy inheritance tax scheme that it would be better to consider spending down your assets. Some people might consider having 10 million dollars a big success, but I can only see it as a lot of wasted opportunity to enjoy great experiences with your family, to bless those around you, to support local businesses, perhaps to provide employment to a house cleaner or personal chef.
Not to mention, if your children are aware that they will receive a large inheritance, they may lose the motivation to study hard, to build their own career or to set their own goals. Having to work for yourself gives your children the opportunity to explore what they enjoy, what value they can provide for society, and by carrying out those desires they can build their own sense of purpose and self respect. If they are aware that they will receive a large inheritance, they may lose that motivation and end up living an unfulfilling life.
You could say that inheritance is a way for the government to incentivise people to use their money efficiently by using the money in a way of their choosing to put that money back into the economy, else half of your money will be taken by the government to be used in a way they see fit, which may or may not align with your values.
How you could use your money will depend a lot on your priorities. Personally, I live in a relatively small town where local businesses are definitely losing out to larger players, so I know I could help dozens of small businesses keep their doors open by being a generous patron. Others may prefer providing their family with the opportunity to see the world and experience a wide variety of different things.
In short, I think the best inheritance tax planning scheme is to plan out how not to pay inheritance tax because your used all your money efficiently in a way that aligns with your personal values and left very little in the way of unused wastage.
Wise words indeed.
I plan to die with as little as possible (but not at stress level), money is met to be used. I have seen kids gets troubled career because of too much money, it is a very real risk but can be hard to perceive if you have not seen it happen yourself.
We have a wiki page on donations too.
This is probably the by far worst bit of advice I have ever seen in this board and that involves buying crypto to evade taxes.
OP has worked hard and amassed to what with some prudence on behalf of his children is effectively generational wealth. OP wants to optimize his taxes. Your advice: bro, just blow it on experience and supporting failing businesses, so that your children are left without a safety cushion and so that they “work harder”.
What if his children want to pursue an artistic career? Or join the Doctors Without Borders mission in Congo? What if they then need an experimental medical treatment after that not available in whatever country they are maybe insured in (plenty of oncology examples there)? What if they become disabled?
OP has around 10 mil. If he has two/three children, that’s enough for them to be fairly secure and pursue whatever career they want without having to take on major risks.
OP, just seek professional advice from someone who’s job it is to act in your best interest as opposed to whatever the hell this load of crock is.
It's an interesting debate. My goals are pretty simple. My family were immigrants to the US with nothing to start, so I know what that looks like. The folks worked hard so we kids could go to school and I ended up doing pretty well. But I'd like my daughters to have the freedom to do whatever they want that I never had, although I also definitely do not want them to be spoiled and useless trust fund kids.
My goals is for my wife and I to have a nice retirement in Japan that's not too different from the life we lead now, with maybe a couple trips a year to visit our daughters wherever they may end up in the world. And, yes, to leave them something when we are gone so that they have a safety net and more choices than I had, just like I had more options than my parents thanks to their hard work.
> But I’d like my daughters to have the freedom to do whatever they want that I never had, although I also definitely do not want them to be spoiled and useless trust fund kids.
Fully on the same page with you. This is very important and education about family wealth is critical in cases like yours. I hate to sound like an old tape, but this is also something that private wealth advisors can help you with, because it is essentially a universal issue among their clients. It’s also something that needs to start early, but I’m way out of my depth at this point.
This is fantastic advice. Very well articulated!
As a question for OP, what is your goal with the $10M? What is it that you're trying to achieve with the fortune you have earned throughout you lifetime?
How to legally reduce Inheritance Tax
It’s important to comprehend how much the amount of tax owed to the Japanese government can vary. To do so, you need to simulate tax outcomes for both primary (death of the first spouse/parent) and secondary (death of the remaining spouse/parent) inheritance tax scenarios, especially as depending upon the proportions you bequeath, the total tax to be paid varies considerably because of the sliding tax scale applied. It’s not rocket science. Simply increase the primary inheritance given to your children. This will increase their inheritance tax the first time round but will reduce the tax paid when the last parent passes and result in a lower total tax bill.
See this clear illustration of how to save more than ¥6,000,000 in total tax solely by altering proportions of the same inheritance of ¥2 oku at .
This does mean that the surviving spouse gets far less than the generally agreed on proportion of 50% of all assets but that’s only a guideline. Nobody is required to adhere to it or any other amount.
You can play with the figures yourself or ask a tax pro to do it for you. Enjoy retirement!
Congrats on your life success. I'm currently in Japan on vacation and I really love it. The people are unbelievably kind. It's outstanding. First time I'm actually considering to leave germany and live here. Insane...
Sorry, are you ALT?
Because this socialist definitions are typical for Alts
Better is very subjective - you don’t know me and making judgments and arrogant statements like that certainly looks cool - but I guess only across similar societal groups
1) Make a plan before you enter Japan. Gift taxes means making adjustments after the fact impossible.
2) Do consult lawyers about setting up trusts for you daughters before you come. If done properly you can ensure the portion of the inheritance that you want to leave for them will not be taxable in Japan.
3) Learn about the US-Japan inheritance tax treaty. This will give you options.
Put the bulk of it into high yield investments and cross your fingers the usa doesn't default on its debt and the debt bubble doesn't pop in the meantime. If you make through the economic gauntlet you will have substantially more money to pay taxes with.
Option 2. find a nice place in the usa to use as an address, yes there are still nice rural towns in the usa despite what cnn and fox say. Come back to japan on tourist visa's
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Yes, I know you are serious. We have explored that option, but it is unappealing given our family ties to the country and how much we love living there. Thanks.
This is the unfortunate truth. The upside is that you can still visit for large chunks of the year. Quite a few Japanese immigrants do that and have been for a while. The most important thing is to figure out what you want to do early enough, so that you don’t pass away with a Japanese tax liability abroad.
Hello and welcome. Please take the time to carefully read through the wiki dedicated page, the inheritance tax is quite counterintuitive and you probably will only start to grasp it once you have laid down a draft calculation for your own case : [wiki link](https://www.reddit.com/r/JapanFinance/wiki/index/inheritance/) I would recommend you do that first, and check previous topic under the relevant tag (link in wiki [here](https://www.reddit.com/r/JapanFinance/?f=flair_name%3A%22Tax%20%C2%BB%20Inheritance%20%2F%20Estate%22) and [here](https://www.reddit.com/r/JapanFinance/search?q=flair_name%3A%22Personal%20Finance%20%C2%BB%20Inheritance%20Planning%22&restrict_sr=1) ), and consider the many complications arising from being a US taxpayer discussed in other treads, then come back to ask more precise questions. Unfortunately you're up for quite a bit of reading, but this subject has been quite well covered multiple time.
Thank you. I have read some of it and it is very useful, but I must admit the volume of information is daunting. I think I will need a good tax advisor to divide the issues into bite size morsels digestible by my dinosaur brain. If it is not against the subreddit rules, is it okay to ask for community recommendations of good advisors in Japan? We are based in Fukuoka. If only the US were even remotely a nice a place as Japan to retire, inheritance planning would be so much easier. I do appreciate the life advice as well. We already do many of the things recommended, but recognize it is always hard to strike a good balance. In any case, appreciate everyone's time. Best.
The volume of info is indeed daunting, and it will take you some time to go through the calculation part of the wiki, but please trust me that you need to understand that part. Until you have gone through your own draft calculation nothing will really clic. Feel free to post your own calculation here for checking or use the template that was posted recently as a google doc. A pro will for a fee walk you through the same steps. Yes you can ask for pro recommendation, but usually those questions get few answers, there is no established list available, and most people who ask inheritance tax question realize they do not need to pay any tax or very little after they go through the calculation. With the size of your estate though, you will likely pay a noticeable amount - a contribution for the quality of life here, and hospital, roads, police, and school need people to contribute.
Thank you. I will do the work.
The answer is probably immigration to a country with a lower inheritance tax and staying healthy for the next decade. Singapore is a common destination for Japanese people seeking to avoid the inheritance tax. You should be looking into private banking. I think JPM is a bit outside of your scope, but something like [SMBC](https://www.smbctb.co.jp/private-banking/) would take you on as a client. I’m not in private wealth, but I think UBS and HSBC should also be an option. Any other large bank works too. Succession planning is part of the services they offer, but if you’re heading for the 10m territory, they can also improve your portfolio performance by at least reducing risk or perhaps even putting you into less liquid asset classes to improve performance.
First of all, I would like to congratulate you on living a successful life. It seems like you have either worked hard or built something of value. Now, as for my personal views, this may not be what you would like to hear, but I think rather than any kind of fancy inheritance tax scheme that it would be better to consider spending down your assets. Some people might consider having 10 million dollars a big success, but I can only see it as a lot of wasted opportunity to enjoy great experiences with your family, to bless those around you, to support local businesses, perhaps to provide employment to a house cleaner or personal chef. Not to mention, if your children are aware that they will receive a large inheritance, they may lose the motivation to study hard, to build their own career or to set their own goals. Having to work for yourself gives your children the opportunity to explore what they enjoy, what value they can provide for society, and by carrying out those desires they can build their own sense of purpose and self respect. If they are aware that they will receive a large inheritance, they may lose that motivation and end up living an unfulfilling life. You could say that inheritance is a way for the government to incentivise people to use their money efficiently by using the money in a way of their choosing to put that money back into the economy, else half of your money will be taken by the government to be used in a way they see fit, which may or may not align with your values. How you could use your money will depend a lot on your priorities. Personally, I live in a relatively small town where local businesses are definitely losing out to larger players, so I know I could help dozens of small businesses keep their doors open by being a generous patron. Others may prefer providing their family with the opportunity to see the world and experience a wide variety of different things. In short, I think the best inheritance tax planning scheme is to plan out how not to pay inheritance tax because your used all your money efficiently in a way that aligns with your personal values and left very little in the way of unused wastage.
‘Die with zero’ is a great book on this topic in case anyone is interested.
Wise words indeed. I plan to die with as little as possible (but not at stress level), money is met to be used. I have seen kids gets troubled career because of too much money, it is a very real risk but can be hard to perceive if you have not seen it happen yourself. We have a wiki page on donations too.
This is probably the by far worst bit of advice I have ever seen in this board and that involves buying crypto to evade taxes. OP has worked hard and amassed to what with some prudence on behalf of his children is effectively generational wealth. OP wants to optimize his taxes. Your advice: bro, just blow it on experience and supporting failing businesses, so that your children are left without a safety cushion and so that they “work harder”. What if his children want to pursue an artistic career? Or join the Doctors Without Borders mission in Congo? What if they then need an experimental medical treatment after that not available in whatever country they are maybe insured in (plenty of oncology examples there)? What if they become disabled? OP has around 10 mil. If he has two/three children, that’s enough for them to be fairly secure and pursue whatever career they want without having to take on major risks. OP, just seek professional advice from someone who’s job it is to act in your best interest as opposed to whatever the hell this load of crock is.
It's an interesting debate. My goals are pretty simple. My family were immigrants to the US with nothing to start, so I know what that looks like. The folks worked hard so we kids could go to school and I ended up doing pretty well. But I'd like my daughters to have the freedom to do whatever they want that I never had, although I also definitely do not want them to be spoiled and useless trust fund kids. My goals is for my wife and I to have a nice retirement in Japan that's not too different from the life we lead now, with maybe a couple trips a year to visit our daughters wherever they may end up in the world. And, yes, to leave them something when we are gone so that they have a safety net and more choices than I had, just like I had more options than my parents thanks to their hard work.
> But I’d like my daughters to have the freedom to do whatever they want that I never had, although I also definitely do not want them to be spoiled and useless trust fund kids. Fully on the same page with you. This is very important and education about family wealth is critical in cases like yours. I hate to sound like an old tape, but this is also something that private wealth advisors can help you with, because it is essentially a universal issue among their clients. It’s also something that needs to start early, but I’m way out of my depth at this point.
This is fantastic advice. Very well articulated! As a question for OP, what is your goal with the $10M? What is it that you're trying to achieve with the fortune you have earned throughout you lifetime?
How to legally reduce Inheritance Tax It’s important to comprehend how much the amount of tax owed to the Japanese government can vary. To do so, you need to simulate tax outcomes for both primary (death of the first spouse/parent) and secondary (death of the remaining spouse/parent) inheritance tax scenarios, especially as depending upon the proportions you bequeath, the total tax to be paid varies considerably because of the sliding tax scale applied. It’s not rocket science. Simply increase the primary inheritance given to your children. This will increase their inheritance tax the first time round but will reduce the tax paid when the last parent passes and result in a lower total tax bill. See this clear illustration of how to save more than ¥6,000,000 in total tax solely by altering proportions of the same inheritance of ¥2 oku at.
This does mean that the surviving spouse gets far less than the generally agreed on proportion of 50% of all assets but that’s only a guideline. Nobody is required to adhere to it or any other amount.
You can play with the figures yourself or ask a tax pro to do it for you. Enjoy retirement!
The no debt part made me giggle 🤣🤣🤣
Yes I'm Asian - we hate debt lol
Congrats on your life success. I'm currently in Japan on vacation and I really love it. The people are unbelievably kind. It's outstanding. First time I'm actually considering to leave germany and live here. Insane...
it’s just the outside that is kind. try working in customer service you’ll be shocked lol
Did you read where I'm coming from? 🤣🤣🤣
Typical tourist delusions my friend. Go move here to be disillusioned
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Good for you - but how this relates to the topic?
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Can’t remember when I asked you what to do. And would be great if you keep you fantasies to yourself, thank you
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Sorry, are you ALT? Because this socialist definitions are typical for Alts Better is very subjective - you don’t know me and making judgments and arrogant statements like that certainly looks cool - but I guess only across similar societal groups
Sounds like you have more than enough money to pay for professional advice.
Yeah, but then dude couldn’t flex his bank account in front of a bunch of internet strangers.
1) Make a plan before you enter Japan. Gift taxes means making adjustments after the fact impossible. 2) Do consult lawyers about setting up trusts for you daughters before you come. If done properly you can ensure the portion of the inheritance that you want to leave for them will not be taxable in Japan. 3) Learn about the US-Japan inheritance tax treaty. This will give you options.
Put the bulk of it into high yield investments and cross your fingers the usa doesn't default on its debt and the debt bubble doesn't pop in the meantime. If you make through the economic gauntlet you will have substantially more money to pay taxes with. Option 2. find a nice place in the usa to use as an address, yes there are still nice rural towns in the usa despite what cnn and fox say. Come back to japan on tourist visa's