My wife is a Japanese citizen and US Lawful permanent Resident. She has resided in California since 2000. In early 2020, her father became ill during COVID and she went to Japan to get her mom settled. She filed the moving-in form (Tennyu Todoke) and then 4 months later filed the moving-out form (Tenshutsu Todoke) and returned to the United States. During that time, she continued working for her US employer and maintained everything else related to her life in the United States (all of her bank accounts, property ownership, …). When I asked her why she had done this, she said she wanted to get access to the Japanese healthcare system and also be eligible for a $1,000 COVID payment.
If I were to die and she moved back to Japan, I am concerned she could be required to pay inheritance tax. She is the sole beneficiary of all of our accounts, all community property. I have 2 living parents and 2 living siblings, so her statutory share of inheritance is 2/3rds.
**Did filing the moving-in form establish her as a tax resident of Japan (which would stick with us for 10 years)?**
Related… we have substantial assets held as community property. Most assets are held in my name.
In California, she owns 50%. If I were to die and she was a tax resident of Japan, would she be taxed on the 50% she inherited from me (already owning the other 50%) or the full amount?
by GaijinDaiku