Explain how to inherit real estate!Introduce required documents, costs and taxes

Inheritance is not something that happens often, but when an inheritance occurs, you may not know what to do, have trouble finding procedures and necessary documents, and regret that you should have done this at that time.To prevent this from happening, be sure to check the procedures and costs of inheriting real estate in case of an emergency.

4 ways to divide and inherit real estate among relatives

First of all, unlike cash, real estate is difficult to divide evenly if there are multiple heirs.Therefore, several methods are used to divide the inheritance.

1. In-kind division is a method of dividing the land as it is

In this method, jointly owned real estate is divided (*1) and each land is acquired by a joint ownership interest holder (*2).Dividing may sound simple, but the price of the land changes depending on conditions such as whether it faces the road, north or south.Therefore, even if it is divided, it may become unfair and may cause trouble.

*1 In real estate terminology, we use the term “one piece of land” to refer to a piece of land that is registered as one piece of land.
*2 When property is jointly owned by multiple people, the ownership rights established on the jointly owned property are called ownership rights.

2. Cash splitting is a method of selling land, converting it into money, and splitting it.

It is clear because it is a method of distributing among the heirs from the money obtained by selling the land.There is no dispute over the amount of compensation as in compensation division (described later).There is also an advantage that it is easy to pay even if you do not have cash when paying inheritance tax.Also, if the heir is far away, he may not want to manage the land, so it may be better to exchange it for cash.

3. Compensation division is a method in which the inheritor pays the other heirs in money.

If there is a house on the land and there is an heir who wants to continue living there, it cannot be divided into cash.Compensation division is useful as a countermeasure at that time.A specific heir who wants to continue living in the house inherits the property, and that heir pays the rest of the heirs a corresponding amount of money.If the heir can pay this, there is no problem, but in the unlikely event that he cannot pay the money, there is a possibility that it may develop into a lawsuit and become an extra burden.

4. Sharing division is a method of sharing by all heirs

It is a method of inheriting real estate in the joint name of the heir.Co-ownership requires the consent of all parties regarding real estate, so even if one person wants to sell it, there is a disadvantage that it cannot be sold unless the consent of the remaining heirs is obtained.In theory, it is possible to sell the property by dissolving the joint ownership and making it a sole ownership, but whether or not there will be a buyer depending on the situation of the land is a different story.

List of documents required for real estate inheritance

Family register of all heirs

After the date of the decedent's death, an application is made to the municipal office where the person's permanent domicile resides to obtain a copy of the family register of all the heirs.
*Can be mailed or picked up at a convenience store

Seal certificate of all heirs

Note that it is different from the seal registration card.Use your seal registration card or my number card to fill in the necessary information on the seal registration certificate issuance request form at the government office and submit it.
*If you use your My Number card, you can also use a multi-copy machine at a convenience store.

Family register of the decedent

At the government office of the decedent's permanent domicile, tell them, "I need it for inheritance, so please just take the family register from birth to death."The collection of family registers will gradually go back from the most recent family register.In some cases, a copy of the removed family register (if there is no one living in the same family register in the same family register) or a Kaisei Genkoseki (a copy of the family register before it was changed due to the revision of the Family Register Law). You will need it, so it will be smoother if you get expert advice in advance.

Since it is rare for one government office to have everything, they will tell you which government office to ask next.At that time, I think that it is difficult to go if it is too far away.In such cases, the application must be sent by mail.The method is described on the website of the billing office, so please check it.

In general, the steps are:

1. Download the family register request form and prepare a copy of your ID (license, etc.)
2. Prepare a copy of the first family register (to prove the relationship with the decedent)
3. Fixed-amount postal money order (available at post offices)
4. Self-addressed envelope (with stamps)

Repeat this until you reach the family register of birth.

Removal of the resident card of the decedent

In order to prove that the decedent is the owner of the real estate, we will prepare a certificate of exemption that lists the permanent domicile, address, and name.

The address and name are listed in the real estate register copy, and the registered address and name are listed in the family register copy, so it is possible to prepare a certificate of exemption in which the registered address, address, and name are all listed. A document that proves that the decedent is the owner of the property.

inheritance division agreement

If there is no will, it is like a certificate that all the heirs have agreed to the contents of the inheritance division.This will save you trouble later.Anyone can create an inheritance division agreement, but if it is difficult, you can ask an expert such as a lawyer.

Certificate of entry

Fill in the application form for issuance to obtain a certificate of registered information.You can apply at a registry office (legal affairs bureau, branch office, branch office), and you can also apply online.Certificates of registered matters are divided into four types according to the content to be certified.If you have a certificate of all matters, you can cover all the other three certificates, so let's use a certificate of all matters.

• Certificate of all matters: Contains information on all registered matters from the past to the present
• Certificate of Current Matters: Only the registered matters that are valid as of today are listed.
• Certificate of Partial Matters: Also known as a copy of the registry, it certifies only a part of the registered matters of real estate.
• Certificate of closed matters: Only past registered matters that have already been closed

Certificate of residence of the heir who inherits the real estate

Get the resident card of all the heirs at the government office.

real estate fixed asset appraisal certificate

It is a certificate of land and buildings listed in the fixed asset tax ledger.The appraisal value of fixed assets is determined by the mayor of the location based on the standards established by the country called fixed asset valuation standards.The review is mainly carried out every three years.It can be obtained at each metropolitan tax office in the 3 wards of Tokyo, and at municipal offices in other areas.If you are far away, mailing is also possible.

Documents required when requesting a certificate are the identity verification documents of the person who came to the counter, corporate representative company seal (no power of attorney required), power of attorney (if someone other than the person), and certification fee.The identity verification documents are as follows.

• Driver’s License
• Basic Resident Register card with face photo
• Health insurance card
• pension book
• Passport
• Long-term care insurance card
• geriatric medical certificate
• Latter-stage elderly medical certificate
• Residence card

*If your identity verification card does not have a face photo, present two of the above.

Once you have all the documents, apply to the legal affairs bureau for a change in real estate speculation.A special application form is required, so check the website of the Legal Affairs Bureau.

Real Estate Inheritance Procedure

Submit a death notification to the municipality and check if there is a will

The law requires that a death certificate be submitted within seven days of the death, so be sure to do so.

Collect all documents related to inheritance registration

These are the documents listed in the list of documents required for real estate inheritance.I will submit this to the Legal Affairs Bureau, but it will not be accepted if even one of them is missing, so let's make sure to get each one.

Negotiate division of inheritance between heirs

It is important to discuss this with all heirs.If you can't participate, you can ask the person who couldn't participate in the inheritance division discussion later, but there's no problem.At this time, as a proof of the inheritance division agreement, create an inheritance division agreement and put everyone's signatures on it.

As a point of caution, it is important to have proof that all the heirs have discussed it, and for real estate, to copy the certificate of registered matters.

Submission to Legal Affairs Bureau - Tax payment

About 1 to 2 weeks after submitting the documents to the Legal Affairs Bureau, the title certificate will be issued, and the inheritance registration will be completed.

The registration itself is over, but after that, there is an inheritance tax payment.Since the tax return must be filed and tax paid within 10 months from the date of the decedent's death, the inheritance tax return must be prepared and submitted to the tax office within 10 months.

Real Estate Inheritance Fees and Taxes

Collecting documents for registration takes a lot of effort, but if you do it yourself, it will cost about 20 to 30 yen if you ask a judicial scrivener.

Inheritance tax is the biggest expense in real estate inheritance.If the total amount of inheritance tax assessment exceeds the basic exemption amount, inheritance tax obligation arises, and the deduction amount calculation formula is as follows.

3,000 million yen + (600 million yen x number of legal heirs) = basic exemption amount for inheritance tax

You must prepare and submit an inheritance tax return and pay the tax within 10 months from the date of the decedent's death.

Related article:Taxes and Tax Savings When Giving Real Estate While Living

Summary

We have introduced the flow of real estate inheritance, necessary documents, and costs.If you understand it in advance, you will be able to imagine the flow up to the inheritance in case of emergency.By calmly clearing one by one, inheritance will be possible smoothly.

At Rich Road Co., Ltd., we will consistently support all aspects of investment real estate, from complete beginners to experienced people, from a wide range of real estate selection, loan consultations, post-purchase management, and renovations.

Click here to book a free individual consultation