How to keep shares out of your hands during inheritance

I have recently gone through the process of inheriting my uncle's estate.

If I were to pass away, I would like my heirs to inherit my shares.

Therefore, I have been researching how to do this.

There are two causes for sell the shares at the time of inheritance.

  1. The heirs have no knowledge of stocks and cash them out.
  2. They are unable to pay the inheritance tax and have no choice but to sell the shares.

The countermeasure for (1) is to write a will or tell the heirs that the shares are valuable assets and not to sell them easily.

Countermeasure (2) requires that some amount of cash be set aside for heirs.

Or you could prepare life insurance.

In Japan, there is no inheritance tax up to 36 million yen of inheritance.

For assets over that amount

  • 40 million yen → 400,000 inheritance tax
  • 50 million yen → 1.6 million yen
  • 60 million yen → 3.1 million yen
  • 70 million yen → 4.8 million yen
  • 80 million yen → 6.8 million yen
  • 90 million yen → 9.2 million yen
  • 100 million yen → 12.2 million yen(All for one heir)

Considering the cost of my funeral and estate liquidation, I would like to prepare about 1 million yen in addition to the inheritance tax.

I would also like to leave at least 2.5 million yen in cash.

And I would be happy if my heirs receive "about 2 million yen" in profit every year from stocks and investment trusts.

This is how I would like to help the next generation.