Just hoping that someone can tell me if I understand the basic system correctly, since it seems fairly convoluted.
So to begin with, let’s say that there’s a hypothetical estate worth ¥8 million yen, to keep things simple. If I understand things properly, the inheritance taxes might go like this:
1. Father dies, 50% goes to mother, 25% to each of the two kids. This means ¥4 million to mother, ¥2 million to each child. Mother is not taxed, children are each taxed at the rate for ¥2 million.
2. Mother dies, 50% goes to each child. That means that sonny gets and is taxed on ¥2 million, princess receives and is taxed on ¥2 million.
In other words, the tax is based upon what the recipient receives and not upon the size of the estate, and if there’s multiple heirs and a wife, the ¥8 million yen estate is ultimately taxed in four slices of ¥2 million, two to each child?
by Chainsawfam