When someone passes away, the basic protocol for residents of Japan is to go through the inheritance process. Inheritance refers to the transferring of assets, though in some countries around the world, inheritance may not necessarily involve the transfer of monetary assets. This is the case when there is no inheritance tax.
For example, several countries in Southeast Asia do not have an inheritance tax. Thailand is a prominent example. As a result, when someone dies, their family can inherit almost all of their assets, leading to the potential downside of class immobility due to the solidification of social statuses. On the other hand, Japan imposes significant inheritance taxes, meaning that with each successive generation, the benefits passed down from previous generations diminish. In a sense, this system functions as a way to eliminate the perpetuation of family lineages through wealth. However, from the perspective of those who wish to preserve their assets, it is understandable why inheritance taxes may be resented.
When it comes to inheritance, there are various complications to navigate. This includes securing the deceased's bank accounts, determining the heirs and inheritance amounts. While these matters are often legally defined, a person's wishes expressed during their lifetime can sometimes influence and modify the inheritance amounts to varying degrees through a will.
However, there are other responsibilities beyond just inheriting assets. Of course, there are matters such as the reimbursement of medical expenses incurred during the deceased's lifetime, funeral arrangements, and the maintenance of a gravesite. Inheritance is not solely about acquiring assets; it encompasses these various aspects as well. In recent years, Japan has seen an increase in single-person households, resulting in a growing number of elderly individuals facing their final days without close family or support systems. For these individuals who pass away alone, their remains and the handling of services like burial are often entrusted to public organizations or governing bodies in the absence of direct heirs. In such cases where there are no successors, the concept of inheritance may not even come into play.
For instance, if a deceased individual owned one Bitcoin during their lifetime, without knowledge of the private key for that Bitcoin address, there would be no way to access or transfer those funds. In response to the increasing digitization of assets, the concept of "digital inheritance" has emerged. For example, if a deceased person's Bitcoin address were to be inherited by a specific individual, and if inheritance taxes were mandated by the governing authorities, rather than having to physically visit government offices, an automated system could facilitate the direct transfer of the Bitcoin from the deceased's address to the heir's address, with the appropriate inheritance tax deducted.
This trend is indeed gaining traction, with personal social media accounts also being considered as inheritable digital assets. The ability to complete inheritance procedures at a pace multiple times faster than traditional methods would be immensely beneficial. It is a fact that heirs themselves age during the time-consuming process of inheritance, and while no one may wish to spend an excessive amount of time on such matters, it would be difficult to claim that this sentiment applies to everyone universally.
It seems reasonable to suggest that there is a shared desire among all individuals to minimize the time required for inheritance processes as much as possible. Streamlining these procedures through digitization and automation could alleviate significant burdens and allow for a more efficient transition of assets between generations.
