We are Murata & Co., Tax Accounting Office, located in Miyakojima-ku, Osaka City, specializing in inheritance and international taxation.
Today, we would like to introduce the issue of residuary property, which we are often asked about by our clients.

1. What is "Residuary Estate"?　

The residuary estate is the minimum portion of the inheritance guaranteed to the legal heirs. In other words, it is the right of the heirs to claim that they are entitled to at least this percentage of the inheritance. The will can specify which of the heirs will inherit the property, but be careful not to concentrate the property in the hands of a particular heir, as this can easily infringe on the residuary estate.
If the residuary estate is infringed, the heirs will not receive the minimum amount of inheritance they are entitled to, which may lead to a family dispute. It should be noted that among the heirs, brothers and sisters do not have a residuary estate. 2.

2. Property Subject to Bequest

(1) Property to be Bequeathed or Donated upon Death

A bequest refers to the succession of property by will. If a will allows a specific person to inherit a large amount of property, it may be subject to a claim for infringement of the residuary estate.
A gift upon death is a gift contract that takes effect upon death.

(2) Property Donated before Death

Property donated during one year of inheritance is also subject to a claim for infringement of the residuary estate. However, if both the giver and the receiver know that the gift is an infringement of the residuary estate, then gifts made more than one year ago are also included.
However, there is a concept of "special benefit" for living gifts, and if a gift is considered a "special benefit," in principle, the gift must have been made within 10 years prior to the start of inheritance.
The term "special benefit" refers to the benefit received by an heir who received a special benefit such as a gift of property from a deceased person (special beneficiary).

3. Claim for Infringement of Residuary Estate

A claim for infringement of the residuary estate refers to a procedure in which a rightful heir who has had his or her residuary estate infringed on can ask the person who received a large amount of property as a gift or bequest to return the residuary estate in money to him or her. If a claim for infringement of the residuary estate is made, the party who has been wronged will need to confirm the amount of the infringement and make financial preparations, and the party who has made the claim may need to prepare for mediation or a lawsuit.
As a result, both parties will be burdened financially and psychologically, so when preparing a will, it is necessary to prepare it in a manner that does not infringe on the residuary estate.
A claim for infringement of intestate succession is,

One year from the time when he/she became aware of the commencement of inheritance and the existence of a gift or bequest that infringes on the intestate estate.
If you do not know about the infringement of the residuary estate, you have 10 years from the start of inheritance.

If you do not know about the infringement, you have 10 years from the start of inheritance to file a claim.

Murata Sogo Tax Accounting Office provides consultation on intestate succession as well as support for the preparation of wills.

Please feel free to contact us.