What is International Inheritance?
International inheritance refers to cases where inheritance procedures or inherited assets involve foreign elements. These can generally be classified into four categories:
- The decedent is Japanese, the heirs are also Japanese, but part of the estate is located overseas.
Example: Real estate abroad, overseas bank deposits, government bonds, stocks, corporate bonds, or other securities issued by foreign governments or companies. - The decedent was a foreign national living abroad, but owned property in Japan.
Example: A foreign decedent holding a bank account or real estate in Japan. - The decedent was a foreign national but resided in Japan.
Example: A foreign resident with an address or domicile in Japan at the time of death. - When one or more of the heirs are foreign nationals.
Example: A Japanese husband and a foreign wife, where the husband passes away and the foreign spouse becomes an heir.
Basic Principles of Applicable Law in Inheritance
In Japan, inheritance matters are in principle governed by the “national law of the decedent” (the law of the country of which the decedent was a national) (Article 36 of the General Rules of the Application of Laws).
Specific Examples
- When a Japanese national dies overseas
Japanese inheritance law applies regardless of whether the decedent had an address or residence in Japan. - When a foreign national dies while residing in Japan
The law of the decedent’s home country takes precedence. However, if that law provides that the law of the place of residence should apply, then Japanese law will apply (this is known as “renvoi”). - When a Japanese national owns property abroad
Japanese law applies to inheritance in general, but for real estate in particular, the law of the country where the property is located may take precedence.
When Foreign Law Becomes the Applicable Law
If the decedent was a foreign national, the inheritance law of that country generally applies. However, if that country’s law states that,
“the law of the place of residence shall apply,” Japanese law may be applied instead.
This is an example of renvoi, where foreign law refers the matter back to Japanese law.
Matters Determined by the Applicable Law
The law governing inheritance (usually the decedent’s national law) determines matters such as:
- Who qualifies as heirs
- The order of inheritance among heirs
- Validity of wills (both content and form)
- Substitutional inheritance (e.g., whether grandchildren may inherit when a child has predeceased the decedent)
Procedures in Japanese Courts
Inheritance procedures may be carried out in Japanese courts if the decedent had an address or residence in Japan at the time of death, regardless of nationality.
Even if a Japanese national died abroad, if they had an address or residence in Japan at the time of death, or if assets are located in Japan, the case may also be handled by a Japanese court.
However, if the decedent was a Japanese national residing abroad, inheritance proceedings may also be possible in that foreign country, which can sometimes result in overlapping procedures.
Summary
In international inheritance cases, the law of the decedent’s nationality (home country law) is the basic principle. However, the actual applicable law may differ depending on:
- The law of the country where the property is located
- Provisions under the decedent’s national law (such as renvoi)
Therefore, in practice, inheritance must often be considered in the following order:
Home country law → Foreign law → Renvoi → Mandatory local rules (especially concerning real estate).