What Is International Inheritance?

International inheritance refers to situations where inheritance procedures or inherited assets are proceed across the border.

It can generally be classified into the following four patterns:

1. The deceased and the heirs are Japanese nationals, but the estate includes assets located overseas
   Examples include real estate located abroad, foreign bank deposits, and government bonds, shares, corporate bonds, or other securities issued by foreign governments or corporations.
2. The deceased was a foreign national residing overseas, but left assets located in Japan
   For example, cases where a foreign national held bank deposits in Japan or owned real estate in Japan.
3. The deceased was a foreign national who resided in Japan
   Cases where a foreign national who had a domicile or residence in Japan passes away.
4. One or more of the heirs is a foreign national
   For example, where the husband is Japanese, the wife is a foreign national, and the wife becomes an heir upon the husband’s death.

Basic Principles Governing the Applicable Law of Inheritance

When inheritance procedures are conducted in Japan, the general rule is that the law of the deceased’s nationality (the law of the deceased’s home country) governs inheritance as a whole (Article 36 of the Act on General Rules for Application of Laws).

Specific Examples of Application

• When a Japanese national dies overseas
  If the deceased held Japanese nationality, Japanese law applies to the inheritance even if the deceased had no domicile or residence in Japan.
• When a foreign national dies while having a domicile or residence in Japan
  As a rule, the law of the deceased’s nationality takes precedence; however, if that law provides that the law of the place of residence applies, Japanese law will be applied. This is known as “renvoi.”
• When a Japanese national owns assets abroad
  In principle, Japanese law governs inheritance as a whole; however, with respect to real estate in particular, the law of the country where the property is located may apply.

Managing Inheritance Matters Under the Deceased’s Nationality Law

If the deceased held foreign nationality, the inheritance law of the deceased’s home country will usually apply. That said, some countries’ conflict-of-laws rules provide that succession is governed by the law of the deceased’s place of habitual residence. Where the deceased was habitually resident in Japan, those rules may refer the matter back to Japanese law. In that case, Japanese law may apply through renvoi.

How the Applicable Law Affects Inheritance Matters

The applicable law of inheritance (generally the law of the deceased’s nationality) determines mainly the following matters.

• The scope of persons who qualify as heirs
• The order of priority among heirs
• The validity of a will (both in substance and in form)
• Representation in inheritance (whether grandchildren can inherit in place of a predeceased child)

Proceedings Before Japanese Courts

When proceedings commence before Japanese courts, inheritance procedures may be carried out regardless of nationality if the deceased had a domicile or residence in Japan at the time of death.

In addition, even if a Japanese national dies overseas, inheritance proceedings may be conducted before Japanese courts if the deceased had a domicile or residence in Japan at the time of death, or if any inherited assets are located in Japan.

However, in the case of Japanese nationals who resided abroad, inheritance procedures may also be conducted in the country of residence, which can result in overlapping proceedings.

Summary

In international inheritance, the general principle is to rely on the law of the deceased’s nationality (home country law); however,

• the law of the country where the assets are located
• provisions of the applicable foreign law as the law of nationality (renvoi)

may result in a different law being actually applied.

Accordingly, in practice, it is necessary to examine the issue in the following order: law of nationality → foreign law → existence of renvoi → mandatory rules of each country (especially with respect to real estate).