Japanese Inheritance Law: Wills and Estates

Published on May 4, 2026 and written by Cyril Jarnias

The issue of inheritance law in Japan is of paramount importance as the country undergoes major demographic changes and family structures evolve. Understanding the specifics of inheritance and wills within Japanese society provides essential insight into the growing concerns of families, from real estate to family businesses.

The complex legal framework surrounding these issues is often misunderstood, but it reveals the cultural and legal subtleties that influence how assets are transferred from one generation to the next. Let’s explore together how, in this unique country, these wealth transfer systems are designed to adapt to modern realities while respecting centuries-old traditions.

Inheritance Law in Japan: Legal Framework and Issues

Legal Framework of Inheritance Law in Japan

The inheritance system in Japan is primarily centered on Book V of the Civil Code (Articles 882 to 1050), along with other related legislation such as the Act on Procedure for Family Affairs and the Act on the Preservation of Wills. These rules determine how the deceased’s property and rights are transferred and to whom.

Main Features of the System

Distribution of Assets and Execution of Wills

• Heirs and Their Scope – The spouse is always an heir, and children (including adopted children), direct ascendants (parents, grandparents), and siblings become heirs in a specific order.
• 1st order: children
• 2nd order: direct ascendants
• 3rd order: siblings

Type of Succession	Spouse	Other Heirs
Spouse + children	1/2	1/2 for all children
Spouse + direct ascendants	2/3	1/3 for all ascendants
Spouse + siblings	3/4	1/4 for all siblings

• Forced Heirship System – In addition to statutory inheritance quotas, a minimum reserved share is guaranteed to certain presumptive heirs.
• Executor of the Will – The executor designated by the will can carry out procedures such as real estate registration or closing bank accounts. The 2019 reform also clarified their powers and responsibilities.

Recent Example of Significant Legislative Reforms

Since 2018, a major overhaul has been underway, with notable features such as:

• Creation of the Right of Residence for the Spouse: In response to an aging society, a new right of residence allowing the surviving spouse to remain in the principal residence free of charge for life or a fixed period was introduced. For example, this allows Mrs. A (80 years old) not to lose her bearings after Mr. B’s death.
• Relaxation of the Holographic Will Procedure: Asset inventories can be created by computer, even for a holographic will. Furthermore, starting in 2020, a preservation service for holographic wills was launched in over 300 legal offices nationwide, promoting fraud and loss prevention, and leading to an increase in the use of this service.
• Special Contribution Claim System: A new system allowing family members who greatly contributed through caregiving for the deceased to request financial compensation was established.

Modern Problems and Analysis Based on Statistical Data

• Demographic Change: Notable changes in the demographic structure such as aging and an increase in single-person households. In 2017, over 1.34 million deaths were recorded, among which more than 110,000 (a rate of 8.3% subject to taxation). It is urgent to strengthen measures in response to new social problems like the protection of elderly spouses, the issue of vacant houses, and the risk of multiple debts.
• Digitalization: Discussions are underway to shift from a paper-based system to expanded use of electronic notary offices, integration of social security numbers, and acceptance of online applications. However, the implementation and legality of fully dematerialized digital wills are still under development in Japan.
• Future Reform Points: Multidimensional considerations are ongoing regarding the eradication of discrimination against children born out of wedlock, consideration of diverse family forms, and strengthening the protection of de facto partners. Discussions on harmonizing private international law and cross-border succession rules in response to the increase in international marriages are also underway. Regarding measures against economic disparities, proposals to revise annual gift exemptions and centrally manage advance gifts are emerging.

Concrete Examples

• Case Study (Simplified Version):
  • In the event of Mr. A’s death, with a house (land and building value: 20 million yen) and savings accounts of 5 million yen: Mrs. B and Mr. C, eldest son, could be allocated 12.5 million yen (including 10 million for the right of residence) for Mrs. B and 12.5 million yen for Mr. C, but this balance can be adjusted by mutual agreement.
  • In the case of Mr. D’s death, with a significant caregiving burden borne by his eldest daughter E during his lifetime, there is an example where a claim for special contribution compensation was accepted. On the other hand, even in the case where only the minor grandson F was dependent, a new avenue for recourse is being opened.

Element	Before Reform	After Reform
Spouse’s Right of Residence	No principle	Creation. Possibility of separate usage transfer from ownership
Holographic Will	Handwriting mandatory	Computer-written inventory allowed & deposit option at government office
Special Contribution Compensation	Limited to blood ties	Extended to the entire family

According to the latest statistics, among over 1.34 million deaths of deceased individuals, more than 110,000 were directly subject to taxation, making it necessary to balance this with measures to encourage lifetime gifts. Thus, in the modern socio-economic context of Japan, there is a growing demand to update fundamental civil law systems, focusing on the protection of elderly people living alone, diversity, and the integration of new technologies.

Inheritance in Japan for Expats: What You Need to Know

Residency Standards and Application of Japanese Inheritance Law

In Japanese private international law (Act on General Rules for Application of Laws), it is stipulated that succession is governed by the national law of the deceased person. In principle, national law refers to the legislation of the country whose nationality the deceased person holds. For example, even if a foreign national resides in Japan, upon death, the distribution of the inheritance, etc., is in principle determined by the law of their home country (= nationality). Conversely, in the case of Japanese nationals or dual nationals including Japan, Japanese law is applicable.

However, if the national legislation adopts the principle of the location of assets or the principle of habitual residence, Japanese law may again apply to assets located in Japan, a phenomenon called renvoi. For example, in the case of the death of an American, if U.S. law stipulates that the law of the place where the real estate is located (i.e., Japan) is applicable, that part is handled according to the Japanese Civil Code.

Differences Between a Foreign Will and a Japanese Will

• Content and Validity of the Will: In both cases, they are, in principle, in accordance with the national law of the deceased.
• Form: At the time of drafting the will or at the time of death
  • The law of the place of the act (place of drafting)
  • National law (at the time or date of death)
  • Place of residence or habitual residence
  • In the case of real estate, the law of the location of said property.

If any one of these conditions is met, the will is valid. In practice, for foreign wills drafted in a language other than Japanese, translations, the addition of supporting documents, and a request for probate from the family court to carry out procedures in Japan may be necessary. Furthermore, even if the will is valid as is in the country of origin, other steps may be required for changes to real estate registration, etc.

Tax Impact and the Problem of Double Taxation

• In principle, assets located in Japan are always subject to inheritance tax. If either party (deceased or beneficiary) has resided in the country for more than 10 years, all worldwide assets may be taxed.
• If both the deceased and the beneficiary reside abroad and are long-term non-residents, only assets located in Japan are affected.
• If a taxation system exists abroad (risk of double taxation), for example with developed countries such as the United States, the United Kingdom, France, Germany, Korea, Taiwan, etc., even in the absence of a tax treaty or the U.S.-Japan tax treaty, the foreign tax credit system allows deducting the amount paid twice. This credit amount is the lesser of the payments made abroad or the calculated limit.

Case	Payment Obligation in Japan	Double Taxation Avoidance Measure
Person residing in Japan → All worldwide assets including abroad	Upon each succession	Payment in foreign currency, tax return filing, and foreign tax credit claim
Resident abroad for more than 10 years → Purely between foreigners	In principle no (with a few exceptions)	Unnecessary

Concrete Examples / Case Studies

• U.S. Citizen A, died in Japan as a permanent resident:
  • Owns bank accounts and real estate in the U.S. Family B (spouse) must carry out procedures according to the regimes of both the U.S. and Japan after A’s death. For the change in real estate registration, it is imperative to declare to both the Japanese and U.S. governments and obtain and translate the necessary documents.
  • In the absence of a bilateral agreement, payment must be made to both parties; however, deductions up to a specific amount of the payment made in the U.S. are possible when filing the tax return.
• Mr. C, French national, never stayed in Japan, owns an investment apartment in Tokyo:
  • A change of title deed is not possible using only the French style. An official certificate must be obtained from Mr. C’s foreign representative, and additional documents organized before initiating a probate procedure with the family court for the registration transfer to be carried out.
• Mr. D, resident in the UK (former expat), using an English-style notarial will:
  • Documents in English often need to be accompanied by a Japanese translation and an expert opinion.

Tips – Smooth Preparation Methods for Foreigners

• Whether handwritten or notarized, it is recommended to create a multiple will compliant with the style of each native language/country of residence of yourself and all involved parties. Including a limiting statement such as “This document is only for the asset located at ○○” can also prevent future confusion.
• In special circumstances (framework of a Japanese company / spouse visa / permanent resident status), it is advisable to consult in advance.
• For people coming from countries without a family registration system, it is useful to obtain and store official letters such as birth certificates, marriage certificates, proof of parent-child relationship, etc., to avoid complications.
• Before and after submission to the tax office, remember not to forget to utilize the double taxation prevention measure, the “foreign tax credit”!

Finally, in many cases, it is recommended to consult early with a lawyer experienced in global affairs, a judicial scrivener, or a real estate consultant. Preparing in advance for each source of anxiety is the first step towards a smooth resolution.

International Will and Expats: Practical Tips for Inheritance in Japan

Key Differences Between the Japanese Inheritance System and Those of Western Countries (Especially Common Law)

Japan adopts the principle of universal succession, where, at the time of the person’s death, all their assets and debts are immediately transferred as a whole to the heirs. This is also the case in civil law countries like Germany and France. In contrast, in the United States and the United Kingdom, which are common law countries, the principle of administration and liquidation is more common, where the deceased’s assets are under the management of a personal representative appointed by the court, to be distributed after the settlement of debts and payment of taxes.

Furthermore, in Japan, the inheritance tax rate is high among G7 countries, due to a relatively low basic deduction, making many cases subject to taxation. For example, in the United States, the basic deduction is very high at approximately 2 billion yen.

International Treaties, Private International Law, and Impact on Foreign Residents

Japan’s private international law (Article 36 of the Hō Act) adopts in principle the system of national law, where the applicable law is that of the deceased’s country of origin. However, for real estate, the law of the location of the asset takes precedence, requiring a procedure according to Japanese law for real estate located in Japan, even for foreign nationals.

Foreign residents holding assets in Japan must strictly comply with the Japanese system for the registration and distribution of these assets. Furthermore, with the partial ratification of treaties such as the Hague Convention on the Form of Wills, the validity of wills drafted abroad may be recognized under certain conditions.

For Foreign Residents: Procedure for Drafting a Valid Will in Japan

• Form of the Will: Choice between a holographic will, a notarial will recognized by the Japanese Civil Code, or the local form of your nationality/residence;
• Language: In principle in Japanese, but multilingualism is possible in notary offices, with a translation attached if necessary;
• Identification Documents: Passport or other ID, residence card;
• Asset Inventory: Detailed list of assets (both in Japan and abroad), specifying their location;
• Signature, Seal/Witness Requirements (for notarial wills)

A risk of invalidity exists without expert consultation due to formal defects or imprecise content. It is highly recommended to consult a succession specialist such as a notary or lawyer beforehand.

Issues When Accepting Foreign Wills

• Japanese institutions often require additional steps such as submission of the original, translation, and official certification;
• Even for documents established according to foreign methods, there is a tendency towards stricter examination criteria such as content, signature requirements, testamentary capacity, etc.;
• If the principle of mutual recognition is not well established, some decisions of invalidity or supplementary measures may occur.

Strategies for Reducing Cross-Border Inheritance Tax

• Utilization of bilateral tax treaties such as the U.S.-Japan Tax Treaty to avoid double taxation;
• Reduction of the taxable base through advance gifts (certain gift exemptions exist);
• Ingenuity in forms of financial transfer such as insurance products or the establishment of trusts

However, given frequent regulatory changes, it is essential to stay constantly informed.

Practical Examples and Tips:

• Example 1: Mr. A, originally from the UK, resident in Japan for 20 years, owns a residence in Tokyo and an investment property in London
  → Tokyo property = Japanese-style notarial will + registration with family register extract/affidavit
  → London property = drafting an English-style will with jurisdictional adjustment
  → Setting up a collaboration system between lawyers from both regions is recommended.
• Example 2: Mr. B, U.S. citizen, primarily resided in Osaka his whole life, focused on Japanese yen deposits
  → Inventory of all assets in Japanese and English, possible use of a holographic or notarial will
  → Need for expert involvement to quickly lift the freeze on accounts after death.
• Tips:
  • In a cross-border situation, ensure that official documents from each jurisdiction are complete and verified by local legal professionals.
  • As long as there is real estate in Japan, it is crucial to plan up to the finalization of the registration.
  • It is recommended to start comprehensive planning including tax aspects early.

To prevent inheritance disputes and ensure swift processing across multiple countries, multi-layered checks and professional collaboration are key points.