Understanding Specific Property Succession Wills(特定財産承継遺言) in Japan

Specific Property Succession Wills (特定財産承継遺言) involve bequeathing specified estates to designated heirs. According to Article 1014 Section II of the Civil Code, this is defined as a will that “as part of estate division, designates certain estates to be inherited by one or several joint heirs.” This concept was officially termed “Specific Property Succession Will” following the Civil Code amendment in July 2019.

1. Relationship between Specific Property Succession Wills and Estate Division: These wills are interpreted as designating the method of estate division (Civil Code Article 908). Without special provisions, the designated property automatically transfers to the specified heir upon inheritance. However, it’s permissible for all heirs to agree on an estate division different from what’s specified in the will. Regarding taxation, the National Tax Agency states that if the division conducted by all heirs differs from the will, the inheritance tax is calculated based on this division agreement.
2. Relation between Wills for Succession and Specific Property Succession Wills: Legally, “to succeed” and “to inherit” have the same meaning. The term formerly known as “Wills for Succession” is now referred to as “Wills for Succession” as per the revised Civil Code Article 1014 Section II.
3. Relation between Wills Specifying a Certain Proportion or Entire Property for Inheritance and Specific Property Succession Wills: Even if a will uses the term “to inherit,” those specifying proportions of the estate are not considered Specific Property Succession Wills. Such wills are categorized as “designation of inheritance shares” (Civil Code Article 1046 Section I proviso). However, their legal effects remain the same.
4. Difference between Bequests and Specific Property Succession Wills: A bequest involves gifting property through a will to others, including non-heirs. In contrast, Specific Property Succession Wills involve bequeathing specific property to heirs. When different recipients are designated for different properties in the same will, appropriate expressions must be used.
5. Do Specific Property Succession Wills Apply to Representative Inheritance? If the heir designated in the will predeceases the testator, it’s determined that representative inheritance does not apply unless specifically stated. This is because the testator’s intention is usually limited to the designated heir.
6. Conclusion: Specific Property Succession Wills play a crucial role in inheritance matters. They influence various aspects, including the content of wills, methods of estate division, and tax calculations. Proper understanding and application are key to smooth inheritance procedures.