Inheriting Bank Accounts in Japan as a Foreigner

Why Accounts Are Frozen

Japanese banks freeze the deceased's accounts as soon as they become aware of the death. This happens automatically when the bank receives notification, sees a death notice, or when someone presents a death certificate. The freeze serves two purposes:

• Preventing unauthorized withdrawals by any single heir before the estate is properly divided.
• Preserving the account balance as of the date of death for accurate estate valuation and tax calculation.

All transactions are blocked: no withdrawals, transfers, direct debits, or deposits. Standing orders and automatic payments will fail. Utility companies and other payees should be notified promptly.

Provisional Payment System (仮払い制度)

Since the 2019 amendment to the Civil Code, individual heirs can withdraw a portion of the deposits without the consent of all other heirs. This is designed to cover urgent expenses such as funeral costs and living expenses.

Required Documents

To unfreeze and transfer the deceased's bank deposits, you typically need the following documents. Requirements vary slightly between banks:

• Death certificate (死亡届) or a copy of the family register (戸籍謄本) showing the death.
• Complete family register (戸籍謄本) of the deceased from birth to death, proving all statutory heirs.
• Estate division agreement (遺産分割協議書) signed and sealed by all heirs, or a notarized will.
• Identity documents of all heirs: for foreign heirs, a passport copy and proof of address in your home country.
• Seal registration certificate (印鑑証明書) for Japanese heirs; for foreign heirs, a notarized signature affidavit or consular certificate replaces this.
• Bank-specific inheritance request form — each bank has its own form, usually available at the branch or online.
• Bankbook and cash card of the deceased (if available).

Additional Documents for Foreign Heirs

• Japanese translation of all foreign-language documents, certified by a qualified translator.
• Apostille or consular authentication on foreign notarized documents.
• Power of attorney if you are appointing a representative in Japan.

Procedure by Bank Type

Major Banks (MUFG, SMBC, Mizuho, Resona)

Major banks have dedicated inheritance departments. You can start the process by calling their inheritance hotline or visiting any branch. They will provide a checklist of required documents and guide you through the process. Processing typically takes 2-3 weeks.

Japan Post Bank (ゆうちょ銀行)

Japan Post Bank handles inheritance through any post office. The process is similar but may take slightly longer (3-4 weeks). Deposits are transferred to a designated heir's Japan Post Bank account or another bank account.

Regional Banks and Credit Unions

Smaller financial institutions may have less experience with foreign heirs. It is advisable to have a Japanese representative (lawyer or judicial scrivener) handle the process, especially if communication in Japanese is difficult.

Foreign Bank Accounts in the Estate

If the deceased held bank accounts outside Japan, those accounts are still part of the taxable estate for unlimited taxpayers (those with a domicile in Japan). Key considerations:

• Foreign deposits are valued in Japanese yen using the exchange rate (TTB rate) on the date of death.
• You must report all foreign financial assets on the inheritance tax return.
• The transfer of foreign accounts follows the laws and procedures of the country where the account is held.
• If foreign inheritance or estate tax is paid on these deposits, you may claim a foreign tax credit on your Japanese return.

FAQ

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