(I had to use the US flair but it’s more to do with Japanese taxes/inheritance).
Hi I’d really appreciate some information/advice about my mother transferring a mansion bought 6 years ago in her name in Tokyo to me before her death vs after.
Background:
I am a US citizen, with PR and the intention to stay in Japan forever. My parents are both US citizens living in the US (though my mother used to be Japanese before she naturalized about 30 years ago). They are both 86 years old and have an estate worth about $10-11 million including this apartment which is solely in my mother‘s name. I have one brother who lives in the US.
Situation:
My father doesn’t want to deal with the paperwork necessary with the IRS regarding this Tokyo apartment. Because I live there, not my mother, it is considered a rental apartment for them, (I don’t pay any rent, but I pay for property taxes, utilities and insurance) therefore they want to transfer it to my name ASAP as opposed to waiting for their death to simplify their US taxes.
Questions:
I am assuming it can be considered as part of an early inheritance for me, but:
1. What kind of implications does this have for me and for the estate after this early transfer?
2. Rather than transferring the actual mansion deed to me as an early inheritance, is there any advantage, (or is it even possible), for them to give me cash as an early inheritance and then I use that cash to buy the apartment from my mother? I don’t remember exactly, but 6 years ago she paid about ¥60 million for it but the market price now is probably ¥70 million or so.
3. I’m not sure what needs to be done as far as paperwork? My mother can come to Japan if necessary/easier however.
I know there are bigger problems in the world, but this is my situation and I honestly am a modest person who really doesn’t know much about inheritance taxes etc. so I would really appreciate benefiting from the knowledge that a lot of you have demonstrated (and given to me on past posts)here. Thank you.
by Background_Map_3460
