Published on and written by Cyril Jarnias
In an increasingly globalized world, international successions play a crucial role in managing cross-border assets, and Japan, as one of the world’s leading economies, is not immune to these complex challenges. Understanding the conflicts of law related to successions in Japan is essential for any individual or entity holding assets in this country.
This article explores various aspects of inheritance law in Japan, examining how Japanese courts approach conflicts of law, and providing an in-depth analysis of the applied legal principles. Japan’s legal particularities offer a fascinating portrait of how a legal system attempts to reconcile sometimes divergent interests on the international stage, making this issue not only legally complex but also culturally significant.
Securing the Rights of Expatriates in International Successions in Japan
Legal Challenges Faced by Foreigners
In matters of international succession, the primary challenge is the choice of applicable law. In Japan, Article 36 of the Act on General Rules for Application of Laws stipulates that “succession is governed by the national law of the deceased.” However, in practice, problems arise when assets are distributed across several countries or when conflict of laws rules differ from one country to another.
- Confusion in Determining Applicable Law: Different laws may apply depending on the deceased and the assets, and while Japan adopts the principle of unity, many Western countries follow the principle of scission, where real estate follows the law of the situs and movable property follows the national law.
- Issue of Renvoi: If the foreign country also adopts the situs principle, a renvoi may apply for real estate located in Japan, thus bringing it back under Japanese law.
- Impact on Wills: The applicable law changes the valid forms of wills, required documents, certification methods, sometimes rendering certain documents unusable as-is.
Protection Mechanisms for Foreigners and Treaties
Japan is a party to certain important multilateral treaties, such as the 1973 Hague Convention on the Form of Testamentary Dispositions and Successions. These conventions broadly recognize wills in multiple forms, which were valid at the time of their creation or at death, according to criteria such as place of residence, place of the act, or location of the real estate.
Concrete Example and Typical Procedures
Case 1: Death of a U.S. citizen, Mr. A. Assets: bank deposit in the United States + apartment in Tokyo.
- Japanese Procedure: Obtaining the family register → Determining heirs → Application for registration of assets in Japan
- U.S. Procedure: Petition to the probate court → Transfer of local funds
Practical Tips for Ensuring Protection of Rights
- Early Consultation with an Expert
- Establishing a Multiple Verification System
- Recommendations When Drafting a Will
- Include a Choice of Law Clause
- Consult Accountants from Both Sides
Recent Reforms and Ongoing Discussions
In recent years, the Japanese government and judicial circles have made progress in the following reforms and discussions:
- Establishment of a Digital Information Base
- Promotion of Digitization of Family Registers
- Online Response from Family Court Counters
| Problem Category | Specific Content / Example Measures |
|---|---|
| Choice of Applicable Law | In principle, priority to the national law of the deceased, but many differences depending on assets |
| Use of Related Agreements | Carefully examine literature related to the Hague Convention |
| Typical Cases | Increased burden of translating official documents |
| Rights Defense Strategies | Precautions taken during lifetime anticipating multiple jurisdictions |
Good to Know:
Expatriates in Japan may face complex challenges in international successions due to conflicts of law between Japanese law, which favors the national law of the country of residence at the time of death, and that of their home country. To secure their rights, Japan adopts certain mechanisms from international conventions such as the Hague Convention, facilitating the recognition of foreign wills.
Key Elements of Conflicts of Law in International Successions in Japan
What is a Conflict of Laws in International Successions?
In Japan, a conflict of laws in international successions refers to a situation where different legal systems compete to determine which national legislation should be applied when the deceased, the heirs, or the estate have connections to multiple countries.
General Principles and Applicable Laws in Japan
In Japan, according to the Act on General Rules for Application of Laws, the national law of the deceased (the legislation of the state of their nationality) is, in principle, designated as the law applicable to their entire estate. This is called the principle of national law or the principle of unitary succession.
| Determining Factor | Criteria Adopted in Japan |
|---|---|
| Nationality of the Deceased | Principle: the legislation of that state |
| Permanent Domicile of the Deceased | Generally not taken into account |
| Location of Assets | For real estate, the legislation of the country where the property is located |
Relationship with Multiple Jurisdictions and Examples of Typical Problems
- Real estate in the name of the deceased also exists abroad → it is necessary to proceed in accordance with the local system
- Differences also arise in the tax system and the scope of tax liability
- Conflict of jurisdiction with foreign courts
Good to Know:
A conflict of laws in international successions in Japan occurs when multiple jurisdictions claim the application of their own laws to the same estate. In Japan, these conflicts are governed by principles including the nationality of the deceased, their habitual residence, and the location of assets.
Complex Cases of International Successions and Legal Solutions in Japan
Characteristics of Japanese International Succession Law
Japan adopts a civil law (continental law) system, and succession begins naturally upon the death of the deceased, with the principle of the overall transmission of the entire estate to each heir. This is called the principle of universal succession.
| Category | Japan: Civil Law System | Anglo-Saxon Countries: Common Law System |
|---|---|---|
| Transfer Method | Principle of Universal Succession | Principle of Administration/Liquidation |
| Applicable Principle | Principle of National Law | Place of Situs/Principle of Domicile |
Solutions: Measures Available in Japan and Abroad
- General Rules and Renvoi System
- Treaties Aimed at Avoiding Double Taxation
- Necessary Practical Measures
Good to Know:
Inheritance law in Japan, based on the civil law system, differs from common law in its rigid and formal approach, which complicates international successions, often involving cultural and legal divergences. Conflicts of law frequently arise due to disparities between laws of residence and nationality.
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Cyril Jarnias is an independent expert in international wealth management with over 20 years of experience. As an expatriate himself, he is dedicated to helping individuals and business leaders build, protect, and pass on their wealth with complete peace of mind.
On his website, cyriljarnias.com, he shares his expertise on international real estate, offshore company formation, and expatriation.
Thanks to his expertise, he offers sound advice to optimize his clients' wealth management. Cyril Jarnias is also recognized for his appearances in many prestigious media outlets such as BFM Business, les Français de l’étranger, Le Figaro, Les Echos, and Mieux vivre votre argent, where he shares his knowledge and know-how in wealth management.
