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| What is the 10-year rule for the Inheritance Tax in Japan? |
| Introduction |
| Under the 10-year rule for the inheritance tax in Japan, if it can be determined that the decedent (i.e. owner of assets) and the heir both lost their respective addresses in Japan for at least 10 years preceding the death of the decedent, the heir will not be subjected to the inheritance tax in Japan for any assets that the decedent owned outside of Japan. However, the heir will still be subjected to the inheritance tax for any assets in Japan that the decedent owned and left to the heir. |
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| How the 10-year rule came about |
| Until 2017, a 5-year rule existed in Japan for the inheritance tax. Because affluent Japanese families tried to move to countries such as Singapore or Malaysia to avoid payment of the inheritance tax in Japan, the Japanese tax authorities extended the period by which you would need to lose your address in Japan from 5 year to 10 years, making it difficult for older generations to leave Japan and manage to live and stay in another country for a long period of time exceeding 10 years. |
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| Practical Application of the 10-year rule |
| Under this rule, the only way that an heir will be able to avoid paying the inheritance tax in Japan for assets that the decedent owned outside of Japan is if (1) the decedent is determined to have lost his/her address in Japan for at least 10 years preceding his/her death, and the heir who succeeds to the decedent’s assets is a citizen of a country that is not Japan (i.e. is a foreign citizen in Japan); or if (2) the decedent is determined to have lost his/her address in Japan for at least 10 years preceding his/her death, and the heir who succeeds to the decedent’s assets is a Japanese citizen who is determined to have lost his/her address in Japan for at least 10 years preceding the death of the decedent. |
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| Conclusion |
| Because the 10-year rule can have an effect on Japanese families, expat families that live in Japan, and families that have certain family members living in Japan and other members living in foreign countries, it is good to understand how this rule can affect your family by consulting with a licensed tax professional or legal professional who can help you prepare for the payment of the inheritance tax in Japan or find ways to avoid it. |
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| Free Webinar on the Importance of Preparing Trusts in the United States in October |
| Attorney Yuka Hongo is offering a free webinar in October for those interested in creating trusts in the United States as part of estate planning. Don't miss this opportunity to learn how trusts, asset protection, and estate planning tailored to your unique needs can benefit your family's future. The webinar will be held on Thursday, October 24, 2024. Click here to register. |
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| Free New York Seminar on the Importance of Preparing Trusts in the United States for Japanese Nationals in October |
| Attorney Yuka Hongo is offering a free one-hour in-person seminar in New York City for Japanese nationals interested in creating trusts in the United States as part of estate planning. Don't miss this opportunity to learn how trusts, asset protection, and estate planning tailored to your unique multi-national needs can benefit your family's future. The seminar will be offered October 11 and October 18, 2024. Click here for more information and to register. |
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| Client Comments |
| "Lawyers in the U.S. can be difficult to talk to at times, but I think people find it easy to talk to Ms. Hongo. I also like the fact that Ms. Hongo follows up with her clients on a timely basis." |
| Sachiko Trillo, Honolulu |
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| "Hongo Tsuji Tax & Consulting, our accounting firm, introduced me to Ms. Hongo. I consulted her with regards to estate planning, and I appreciated the fact that she took care of our documents in a timely manner." |
| K.A., Tokyo |
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| "I appreciated Ms. Hongo's professional expertise and the kind way in which she took care of our matter. I am truly happy that she helped us." |
| Mitsuko Seto, Osaka |
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| "Ms. Hongo not only prepared my trust, but also took care of legal matters involving my company. Her fee is reasonable and she follows up with you in a timely manner." |
| S. Suzuki, Company Owner |
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| "Ms. Hongo took care of our matter in a kind manner. We liked the fact that her office was located in Waikiki, near our home." |
| Sugiyama, Waikiki |
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| "I became a successor to 2 condominiums that my wife owned in Hawaii, after my wife passed away. Ms. Hongo took care of our probate matter in a short timeframe of 1 year. We feel very grateful to her." |
| Shuichi Sakamoto, Nasu |
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| "Our clients were very satisfied with Ms. Hongo's service because she was able to explain matters such as probate in an easy-to-understand manner. Ms. Hongo is someone we can rely on for any matter." |
| Noboru Ohhashi, List Sotheby's, Tokyo |
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| "Given that the U.S. real estate recording process and its pertaining laws differ from those of Japan, and it is difficult to learn about them in English, I appreciated Ms. Hongo being able to explain them to me in an understandable manner. I would like to seek her help in the future for other matters." |
| K. Iwasaki, Honolulu |
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| "Ms. Hongo helped me with the estate planning for my real estate in Hawaii. I was glad she was able to help me during her visit in Japan." |
| S.T., Kawasaki |
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| "It was our long-term goal to prepare a trust for our family. We are now able to take the next step in our lives, as Ms. Hongo applied her proficient bilingual skills to efficiently take care of our matter. We are very grateful for what she did for us." |
| A.P., Honolulu |
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| Attorney Yuka Hongo has been included as an honored listee in Marquis Who's Who for 2024. Marquis has chronicled the lives of accomplished individuals and innovators since 1898. |
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| Hongo Law Office LLLC is proud to have been acknowledged as one of the "Best Probate Attorneys in Honolulu for 2024" by Expertise.com. |
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| Attorney Yuka Hongo has been named a 2023 Elite Lawyer in the area of Estate Planning in Hawaii. The award recognizes attorneys who have displayed a high level of competence in their practice. |
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| You're invited to call or email |
"If you have questions about estate planning and administration, please don't hesitate to call. I'll be glad to hear from you." – Yuka
Call (808) 237-9944 or email yuka.hongo12@gmail.com |
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| Meet Yuka Hongo, Esq. |
| Yuka Hongo is a respected estate planning attorney based in Honolulu, Hawaii. She has practiced law for 10 years and is fluent in both English and Japanese. |
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Practice Areas: Yuka represents clients in matters related to estate planning such as the preparation of trusts, wills, and Transfer on Death Deeds. She also provides a service in the area of estate administration, including probate.
Education: In 2000, Yuka graduated from Oberlin College (Oberlin, OH), where she earned a Bachelor of Arts Degree in Economics and East Asian Studies. In 2004, she graduated from Loyola Law School (Los Angeles, CA), where she earned her Juris Doctor Degree. In 2022, Yuka graduated from Keio University (Tokyo, Japan) where she earned a Master of Laws Degree.
Court Admissions and Bar Memberships: Yuka is a member of the Hawaii, California, the District of Columbia Bar, and New York Bar Associations. Yuka is a member of the International Law Section of the Hawaii State Bar.
Additional Qualifications: Yuka is a Certifying Acceptance Agent who can obtain the ITIN tax number for foreigners in the U.S. In addition, she is a life insurance agent and a licensed notary public in Hawaii. Also, Yuka is fully bilingual in Japanese and English and has in-depth experience including complicated translations working with both languages.
Multicultural Background: Yuka has experience living and working in both the U.S. and Japan and has a thorough understanding of both cultures and the people who live in both countries. In addition, she loves working with people from other multicultural backgrounds, and working on international matters.
Accounting Experience: Yuka worked for the Tokyo office of a prominent U.S. accounting firm for the past number of years and has extensive experience working with tax and legal issues that arise from cross-border transactions.
Educational Presentations: Yuka has presented seminars in Japan relating to Transfer on Death Deeds in Hawaii and trusts in the United States.
Residence & Interests: Yuka lives in Honolulu, Hawaii and is single. She enjoys scoping out new eateries and restaurants. |
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