There's much talk about high inheritance taxes in Japan, but for a US/Japanese couple living outside the US the inheritance tax exemption is tiny in the event of the death of the US national, resulting in potentially very steep taxes for the beneficiary. It seems the only way to avoid the tax would be for the Japanese spouse to establish US residency by the time of their spouse's death.
by Jailtherich
2 comments
>the US the inheritance tax exemption is tiny in the event of the death of the US national
No, as long as the beneficiary lives in Japan, they will be treated as if they lived in the US, under Article 4 of the US-Japan inheritance tax treaty. See [this previous thread](https://www.reddit.com/r/JapanFinance/comments/sh0dl4/interactive_brokers_us_estate_tax/), for example.
Can someone explain to me how Japan would even know what you inherited that unless you transferred that money into a Japanese bank?