Death & Taxes

[matsuki]

paying 100% of cash to your parents does not make that asset of 100% cash disappear from the estate.

Today is "Matsuki's brain is in his bum" day!*]

No...but cash can be spent and it's not traceable.

I suppose you could do a KLF, otherwise it becomes a different asset of the same value, which is also part of the estate. I suppose your brain is in your bum all day long today.

I did hear an anecdote about a lawyer who said that you can only hide off-the-books funds by eating and drinking them or putting them into your garden. He had a really nice garden. That probably put the value of his house up, though.

It becomes an asset but cash can be "spent" before they die. It's not like people keep receipts for everything and hell, a crazy trip to Las Vegas could lighten one's wallet considerably without a trace. I'm not saying I plan on doing anything like that but I have to imagine that it can be pulled off with enough effort.

A simple solution for those FG liable, with non-asshole siblings, would be to let a sibling inherit assets or the jikka in their name.

This whole tax grab is also another reason not to become Japanese.

[Samurai_Jerk]

This whole tax grab is also another reason not to become Japanese.

Because our government has shown itself to be very reasonable when it comes to taxing worldwide income.

[matsuki]

This whole tax grab is also another reason not to become Japanese.

Because our government has shown itself to be very reasonable when it comes to taxing worldwide income.

Speak for yourself...NY might have inheritance tax but California doesn't

[Wage Slave]

Or you can do like me Julie, take a life insurance on your dad to cover succesion fees...

My dad got talked into that but the trouble is that the policy was subject to review every year and a big review every 7 years. In fact when we read the fine print it was liable to be reviewed at any time. As soon as payout started looking at all likely they forgot about all the money we had already paid in and hiked the annual premiums to a about fifth of the cover. I predicted they would do this years ago but the financial advisor (now sacked) was adamant that wasn't how it worked. It was of course.

It seems to me that the main method in this country is to take full advantage of the annual gift allowances and some. A lawyer I spoke to about my situation (I am liable in two countries, not just one) expressed surprise that gifts were declared and monitored so carefully in the UK.

In addition a very wealthy person I know of also has a vast collection of antiques, art and wine collected over many years stored at his house. One whole basement floor's worth plus the stuff out on display. I saw someone in the UK do something similiar with a large Clarice Cliff collection. The whole lot was moved out of the house by his son the day after he passed away.

[Wage Slave]

paying 100% of cash to your parents does not make that asset of 100% cash disappear from the estate.

Today is "Matsuki's brain is in his bum" day!*]

No...but cash can be spent and it's not traceable.

I suppose you could do a KLF, otherwise it becomes a different asset of the same value, which is also part of the estate. I suppose your brain is in your bum all day long today.

I did hear an anecdote about a lawyer who said that you can only hide off-the-books funds by eating and drinking them or putting them into your garden. He had a really nice garden. That probably put the value of his house up, though.

You mean that if you took 50 million yen out of your bank account and gave it to your parents in exchange for singing their house over to you, the tax office would be able to trace that!? I find that hard to believe.

I don`t find that hard to believe.... When the title changes both you and they have an associated bank transaction. If you had cash and thus no bank transactions, they would still be looking for proof of the value transferred, and not just taking your word that the value was X, and that they must have simply spent it.

See what I'm dealing with, Wage Slave?

Yes, but not from me!

[Samurai_Jerk]

This whole tax grab is also another reason not to become Japanese.

Because our government has shown itself to be very reasonable when it comes to taxing worldwide income.

Speak for yourself...NY might have inheritance tax but California doesn't

I'm talking in general not specifically about inheritance taxes.

[wagyl]

This whole tax grab is also another reason not to become Japanese.

Please explain. I thought your issue with this was that it was a disincentive for foreign professional expats coming here. But now it has become a nationality issue?

[Wage Slave]

A simple solution for those FG liable, with non-asshole siblings, would be to let a sibling inherit assets or the jikka in their name.

There might well be a will already in place. Having that rewritten and then the issue of having the assets transferred back at some point, and then finding a way to launder the money .......

I don't often recommend speaking to a lawyer but this is one of the few times it is well worth it. Just make sure you do it in a timely fashion - ie at least 7 to 10 years before the event. Doing things bit by bit over a longish time to a legally sound strategy is far better than doing something big and dodgy at the last minute.

[wagyl]

paying 100% of cash to your parents does not make that asset of 100% cash disappear from the estate.

Today is "Matsuki's brain is in his bum" day!*]

No...but cash can be spent and it's not traceable.

I suppose you could do a KLF, otherwise it becomes a different asset of the same value, which is also part of the estate. I suppose your brain is in your bum all day long today.

I did hear an anecdote about a lawyer who said that you can only hide off-the-books funds by eating and drinking them or putting them into your garden. He had a really nice garden. That probably put the value of his house up, though.

It becomes an asset but cash can be "spent" before they die. It's not like people keep receipts for everything and hell, a crazy trip to Las Vegas could lighten one's wallet considerably without a trace. I'm not saying I plan on doing anything like that but I have to imagine that it can be pulled off with enough effort.

OK, let's look at that. You have two choices: you pay 85% of the value of the house to your parents (you are giving them a discount, but not too much, because that would raise suspicions). Your parents then waste it all on a spree with no assets of value remaining. Even trying to spend the discounted value of the house on groceries and fuel in the limited time the decrepit parents have left on this Earth would be difficult. You are down 85% of the value of the house, but you have the house!

OR

You do nothing. Your remaining parent dies. You get the house, and a tax bill which after the various fairly generous deductions comes out to maybe 25% of the value of the house. You are down 25% of the value of the house, but you have the house!

What a difficult decision! Which should I choose???

It would be tiresome for me to make a joke about you sitting on your brain too long.

[wagyl]

A simple solution for those FG liable, with non-asshole siblings, would be to let a sibling inherit assets or the jikka in their name.

There might well be a will already in place. Having that rewritten and then the issue of having the assets transferred back at some point, and then finding a way to launder the money .......

I don't often recommend speaking to a lawyer but this is one of the few times it is well worth it. Just make sure you do it in a timely fashion - ie at least 7 to 10 years before the event. Doing things bit by bit over a longish time to a legally sound strategy is far better than doing something big and dodgy at the last minute.

Also, non-asshole siblings often grow an asshole when they have an asset in their hands and their parents are no longer there to give them the stinkeye for doing it.

[Coligny]

Or you can do like me Julie, take a life insurance on your dad to cover succesion fees...

My dad got talked into that but the trouble is that the policy was subject to review every year and a big review every 7 years. In fact when we read the fine print it was liable to be reviewed at any time. As soon as payout started looking at all likely they forgot about all the money we had already paid in and hiked the annual premiums to a about fifth of the cover. I predicted they would do this years ago but the financial advisor (now sacked) was adamant that wasn't how it worked. It was of course.

English policy ?

Wonder if it's the same muddy waters here... Have to check on that because she sure as hell wouldn't have read any fineprints... Or medium prints, or big prints...

[wagyl]

This whole tax grab is also another reason not to become Japanese.

Because our government has shown itself to be very reasonable when it comes to taxing worldwide income.

Also, veering way off topic, but I sure I have caught myself saying, in relation to my nephew, "this whole liability to be drafted into the military and whole worldwide tax grab is another reason not to become a US citizen."

[Wage Slave]

Or you can do like me Julie, take a life insurance on your dad to cover succesion fees...

My dad got talked into that but the trouble is that the policy was subject to review every year and a big review every 7 years. In fact when we read the fine print it was liable to be reviewed at any time. As soon as payout started looking at all likely they forgot about all the money we had already paid in and hiked the annual premiums to a about fifth of the cover. I predicted they would do this years ago but the financial advisor (now sacked) was adamant that wasn't how it worked. It was of course.

English policy ?

Wonder if it's the same muddy waters here... Have to check on that because she sure as hell wouldn't have read any fineprints... Or medium prints, or big prints...

Yes and no. Zurich was the company but yes taken out in England.

[Coligny]

I think it's Tokyo Marine... Which is weird because they don't appear to sell any boats...
That would have been cool... Being paid in aircraft carriers...

[matsuki]

This whole tax grab is also another reason not to become Japanese.

Please explain. I thought your issue with this was that it was a disincentive for foreign professional expats coming here. But now it has become a nationality issue?

Both...disincentive to come work here and risk an insanely high tax liability. Disincentive to naturalize and gain the same insanely high tax liability no matter where you live. Although Britons and French seem to keep bobbing just above and below Japan when it comes this stuff.

Correct me if I'm wrong but from some quick googling, AUS is 0%? US 40% but the exemptions make it so only the largest 0.2% of estates will have to pay anything.

The U.S. has the fourth highest estate or inheritance tax rate in the OECD at 40 percent; the world’s highest rate, 55 percent, is in Japan, followed by South Korea (50 percent) and France (45 percent). Fifteen OECD countries levy no taxes on property passed to lineal heirs.

[matsuki]

Yes and no. Zurich was the company but yes taken out in England.

Fucking "churihhi"

[wagyl]

Correct me if I'm wrong but from some quick googling, AUS is 0%? US 40% but the exemptions make it so only the largest 0.2% of estates will have to pay anything.

The U.S. has the fourth highest estate or inheritance tax rate in the OECD at 40 percent; the world’s highest rate, 55 percent, is in Japan, followed by South Korea (50 percent) and France (45 percent). Fifteen OECD countries levy no taxes on property passed to lineal heirs.

The 55% rate is the highest marginal rate, only applicable to really substantial estates, especially if there are a number of siblings to share the estate between notionally, so similar in concept to the US 40% rate: largest marginal rate but a minority of estates get to that level. It is, in fact, only for the Six Million Dollar Man.

Rates https://www.nta.go.jp/taxanswer/sozoku/4155.htm

Note fucked calculation method posted upthread viewtopic.php?f=11&t=30700&start=30#p355397 Warning: I am fairly confident as to its accuracy, but it is not 100% confirmed

[Yokohammer]

paying 100% of cash to your parents does not make that asset of 100% cash disappear from the estate.

Today is "Matsuki's brain is in his bum" day!*]

No...but cash can be spent and it's not traceable.

I suppose you could do a KLF, otherwise it becomes a different asset of the same value, which is also part of the estate. I suppose your brain is in your bum all day long today.

I did hear an anecdote about a lawyer who said that you can only hide off-the-books funds by eating and drinking them or putting them into your garden. He had a really nice garden. That probably put the value of his house up, though.

You mean that if you took 50 million yen out of your bank account and gave it to your parents in exchange for singing their house over to you, the tax office would be able to trace that!? I find that hard to believe.

Here's something for you.

My accountant told me that if you buy a car that costs more than 5 million yen, the tax office is informed. I assume it's not the bank that is doing the informing in that case, because you could simply withdraw 5 million + and go down to the car dealer with it. So it's either the dealer, or some part of the vehicle registration process. I suppose I should have asked. Anyway, he said you can count on it. They will definitely be informed. So I think it's best to assume that the walls have eyes and ears.


~ Tapatalking ~

[Coligny]

Maybe there is a 5 milion yens upperlimit for business transaction before you have to declare them.
That would be a duty of the dealership for doing business. ( avoiding laundering for example)

[matsuki]

You guys don't like the blackholes known as casinos?

[wagyl]

Keiba is more fun: there are animals there!

[Coligny]

You guys don't like the blackholes known as casinos?

Eh eh eh...

Eheheheheheheheh...

[matsuki]

Keiba is more fun: there are animals there!

Don't get me started...the ex's pops "invested" more dead people's money in that than all of us combined.

[wagyl]

Keiba is more fun: there are animals there!

Don't get me started...the ex's pops "invested" more dead people's money in that than all of us combined.

Well at least no one will ever have to pay the taxman inheritance taxes on that lost money.

Honestly, your "blow it all at Vegas" plan is basically saying "my kids aren't going to see any of this money, but God dammit, neither is the tax office!"
It is a cool way to say "my children are losers," otherwise known as cutting off your nose to spite your face.

[Coligny]

Keiba is more fun: there are animals there!

Don't get me started...the ex's pops "invested" more dead people's money in that than all of us combined.

I am now officially intredasted...

image.jpg

[Russell]

So, the inheritance from a resident of Japan dying in Japan is taxed by Japan, even if the recipients live outside Japan.

Now, let's turn the table.

The inheritance from a resident of country X (not being Japan) dying in country X is taxed by country X, even if the recipients live inside Japan.

Seems logical, no?

[Wage Slave]

So, the inheritance from a resident of Japan dying in Japan is taxed by Japan, even if the recipients live outside Japan.

Now, let's turn the table.

The inheritance from a resident of country X (not being Japan) dying in country X is taxed by country X, even if the recipients live inside Japan.

Seems logical, no?

Yep. Add in the fact that country x taxes the estate at source and Japan taxes the individual on receipt and you have two of the buggers to worry about. If one don't get you the other may well. Or not, if you have planned and acted well in advance..

[Russell]

So, the inheritance from a resident of Japan dying in Japan is taxed by Japan, even if the recipients live outside Japan.

Now, let's turn the table.

The inheritance from a resident of country X (not being Japan) dying in country X is taxed by country X, even if the recipients live inside Japan.

Seems logical, no?

Yep. Add in the fact that country x taxes the estate at source and Japan taxes the individual on receipt and you have two of the buggers to worry about. If one don't get you the other may well. Or not, if you have planned and acted well in advance..

But doesn't this new law in Japan imply that Japan taxes at the source as well?

[wagyl]

Where does it say that taxes have to be logical anyway? It is just a matter of draining as much as you can from the milkcow residents (and/or nationals, in the case of the US) without them complaining or revolting too much.

[Wage Slave]

So, the inheritance from a resident of Japan dying in Japan is taxed by Japan, even if the recipients live outside Japan.

Now, let's turn the table.

The inheritance from a resident of country X (not being Japan) dying in country X is taxed by country X, even if the recipients live inside Japan.

Seems logical, no?

Yep. Add in the fact that country x taxes the estate at source and Japan taxes the individual on receipt and you have two of the buggers to worry about. If one don't get you the other may well. Or not, if you have planned and acted well in advance..

But doesn't this new law in Japan imply that Japan taxes at the source as well?

If the source is subject to Japanese tax, yes I think you are right. Thankfully that's one thing I don't have to worry about.