Hello and thank you in advance,
I am a 4 year 8 month resident of Japan (maybe 5 years if you count my period as a foreign exchange student). Currently on a student visa, and previously on an instructor visa.
I am an inheritance beneficiary of a revocable trust. It's enough to trigger inheritance taxes, of over 3000万. The family member passed away this past December. From what I understand, I am not required to pay those taxes as am under the 10-year amount and not married, have kids, etc.
My financial advisor is American but recently has opened offices in Japan. They are advising me to be on the safe side, break residency, and return home at least for a little. While unlikely that they would ask for the money, this way I can say I was going home.
I think playing it safe is the smart choice, but looking for a second opinion.
The trustee is a bank. I will receive payouts and possibly interest payments over the next 8 years or so. Which adds more complexity to taxes later too.
Edit: To add more fun, I received a house. But the value of that house is within the trust. We are planning for my brother to buy my half of the house in the next few years as he'd like to keep it. My half is worth around $400-500k. Anything to keep an eye out for in doing that?
Sorry if this has been answered before. I've done a lot of reading but can't find a clear answer.
by petehasreddit
1 comment
The deceased is not a Japanese citizen / has no ties to Japan, and the assets are not in Japan?
If so, I see absolutely no reason for you to move home. Advising you to do something to be on the safe side doesn’t sound like your advisor is very knowledgable. At least you’d want them to be super specific about their concerns.
AFAIU, all the stuff that’s annoying about trusts and inheritance tax in Japan actually benefits you here. For instance, one concern is that being the beneficiary of a trust makes you liable for the entire amount at the time of death / inheritance (or not if not in scope of Inheritance tax). Which in your case means you don’t have to worry about this extending for the next 8 years.
Since it was in December it also means that either you are already liable to pay taxes or not. Moving away won’t change anything after the fact.
Hoping the veterans of this sub can further reassure you.