SEISEI INSIGHTS — Cross-border Compliance
Succession Across Multiple Countries: Why a Single Will Is Not Enough
2026-07-06
We are asked about succession again and again by people whose assets sit in their home country, in Japan, and often in a third country as well — operating-company shares back home, real estate in both the home country and Japan, financial assets in Singapore or Hong Kong. When assets span several jurisdictions, succession cannot be settled with a single will. Each country applies its own rules on inheritance, tax, and currency, and each applies independently. This article sets out that structure as general information.
The Starting Point: An Asset Inventory and a Jurisdiction Map
The first step is to list which asset sits in which country, held in whose name. The next is to map each asset to the vehicle through which it will be held and passed on. The building blocks commonly used in cross-border holding include:
- An offshore trust (as a vehicle for holding and passing on offshore assets)
- A domestic family trust in the home country (for home-country real estate and the like)
- Preferential tax regimes for family offices (for managing overseas investments)
- A Japanese civil trust or gōdō-gaisha (for holding Japanese real estate)
Each is a creature of its own jurisdiction, and whether and on what terms it applies varies widely by country. There is no single all-purpose vehicle; the working assumption is a combination matched to where the assets are.
The Japanese Fundamentals to Confirm
Where a Japanese inheritance-tax liability arises, three points come first:
| Item | Content | Basis |
|---|---|---|
| Basic estate deduction | ¥30 million + ¥6 million × number of statutory heirs | Inheritance Tax Act, Art. 15 |
| Spousal tax reduction | No inheritance tax on the spouse's acquired property up to ¥160 million or the statutory share | Inheritance Tax Act, Art. 19-2 |
| Small-scale residential land relief | Valuation of qualifying land reduced by up to 80% (taxable value compressed to 20%) | Act on Special Measures Concerning Taxation, Art. 69-4 |
Japanese real estate is valued by reference to the roadside land price and the like; combined with the small-scale residential land relief, the assessed value can change substantially. Because any figure depends heavily on the specific facts, the priority is to grasp the full set of reliefs that might apply.
Three Risks That Are Easily Overlooked
As important as designing the structure is grasping the following risks:
- Controlled foreign company (CFC) rules — Profits of a company placed in a low-tax country may be taxed as the income of the individual who effectively controls it. Whether there is genuine economic substance will be questioned.
- CRS (Common Reporting Standard) — Many jurisdictions automatically exchange financial account information. Overseas account balances reach the tax authority of the country of residence without any filing by the holder.
- Currency and remittance controls — Some countries cap an individual's foreign-currency purchases or overseas remittances, so assets cannot be moved all at once; they must be moved in stages through lawful channels.
Treat It as a Structural Question
Cross-jurisdiction succession begins by mapping, on a single diagram, which country holds taxing rights and which reliefs are available where. Before any estimate of amounts, the starting point is an accurate picture of where the assets are, in whose name, and how they are reported in each country. Some regimes involve steps that must be planned within the tax year, so the time dimension matters too.
This article provides general information on tax systems and does not constitute individual tax consultation. Specific filings and tax computations are handled by licensed partner tax accountants whom we introduce.