Filing Inheritance Tax: The First Three Things to Check
After a loved one passes away, you are pressed with many procedures amid grief. "Inheritance tax — where do I even begin?" To ease that worry, we lay out the first three things to check and the overall picture up to filing.
- The inheritance-tax "deadline" and the overall schedule
- How to identify the "assets" to check
- Whether there is a "will", and how to confirm it
- A rough guide to whether filing is required
01First, check the "deadlines"
Inheritance procedures have several deadlines. In particular, filing and paying inheritance tax is set at "within 10 months of the day after you learn the inheritance has begun", and missing it can incur additional and delinquency taxes.
| Procedure | Rough deadline |
|---|---|
| Renunciation / qualified acceptance of inheritance | Within 3 months of learning the inheritance began |
| Quasi-final income-tax return | Within 4 months of the day after learning it began |
| Filing and paying inheritance tax | Within 10 months of the day after learning it began |
02Next, identify the "assets"
Inheritance tax covers all assets the deceased left behind. Grasp not only positive assets but also negative ones such as borrowings.
- Real estate (land, buildings)
- Deposits and cash
- Securities (stocks, investment trusts, etc.)
- Life-insurance proceeds and death retirement benefits
- Cars, precious metals, artworks, etc.
- Borrowings, unpaid bills, funeral costs (those that are deductible)
03Then confirm whether there is a "will"
Whether or not there is a will greatly changes the subsequent procedures. A notarized will can be searched at a notary office; a handwritten will may be searchable via the Legal Affairs Bureau storage system.
If a handwritten will is found at home, then — except for those stored at the Legal Affairs Bureau — do not open it yourself; it requires "probate confirmation" by the family court.
04Is filing even required? — the basic-deduction idea
Inheritance tax has a "basic deduction", and if total assets are at or below this amount, in principle no inheritance tax applies and no filing is required. The basic deduction is calculated as follows.
| Item | Details |
|---|---|
| Basic deduction | ¥30 million + ¥6 million × number of legal heirs |
| Example: 3 heirs | ¥30 million + ¥6 million × 3 = ¥48 million |
Summary
When an inheritance arises, first check the three: "deadlines", "assets" and "a will".
The filing/payment deadline is 10 months. Because valuation and division take time, starting early is crucial.
Filing is required if you exceed the basic deduction or use a special measure. If unsure, consult a tax accountant early.
Talk to Aquamarine about tax & business
- Free first consultation
- Online consultations available
- AI & DX supported
Sources & References
This article is based on information available at the time of publication. Rules and systems may change. Please consult a professional before making any individual decisions.
