When There Is No Will: Who Makes the Decisions?
In the United States, creating a will is a standard life task.
In Japan, it's often delayed for two reasons: "My estate is too small" and /or "I'm still healthy."
Yet, nearly 80% of Japanese family court disputes happen over estates worth less than JPY 50 million.
Having a U.S. will is a great start—but leaving your Japanese assets without appropriate planning can create significant practical challenges for your family.
Related articles:
Cross-Border Inheritance: Why One Country's Law Isn't the Whole Story
Planning Across Two Inheritance Systems: Key Differences Between Japan and the U.S.
Quick Summary
Without a valid will, the law determines who inherits your estate.
Japan and the United States follow different inheritance procedures.
International families often face additional paperwork and coordination across countries.
Table of Contents
1. Japan: Everyone Becomes Involved
2. United States: The Court Appoints an Administrator
3. When Both Countries Become Involved
4. Why Families Struggle
5. Q&A
6. Wrap Up
1.Japan: Everyone Becomes Involved
(Key focus: The requirement for 100% unanimous agreement / 遺産分割協議)
As discussed in our previous article, Japanese assets generally require Japanese inheritance procedures.
When there is no valid will, the legal heirs—not the deceased—must make many of the key decisions needed to complete those procedures.
In practice, the process often involves six steps.
Note for U.S. Citizens
The steps below describe the Japanese inheritance procedures for assets administered in Japan.
As explained in our previous article, if the deceased was a U.S. citizen, additional documentation—such as a Foreign Law Report establishing the application of Japanese law through renvoi—may also be required before Japanese institutions will complete certain inheritance procedures.
1. Identify the estate
The family first identifies all assets and liabilities. This includes bank accounts, investments, real estate, loans, and other property located both inside and outside Japan.
2. Identify the legal heirs
Next, the legal heirs must be identified. For international families, this may involve previous marriages, children living overseas, or relatives living in different countries.
3. Locate everyone
Knowing who the legal heirs are does not necessarily mean they can easily be contacted. Families sometimes discover that siblings have lost contact for many years or that relatives now live overseas.
4. Reach unanimous agreement
Without a valid will, the legal heirs generally need to reach unanimous agreement before many inheritance procedures can move forward. Even when everyone has good intentions, reaching agreement may take time.
5. Prepare an Estate Division Agreement
Once agreement has been reached, the heirs generally prepare an Estate Division Agreement (遺産分割協議書). In practice, all legal heirs are generally required to sign the agreement and affix their registered seal (実印), together with their seal registration certificate (印鑑証明書), before many financial institutions and government procedures can proceed.
6. Transfer the assets
Only after the necessary documentation has been completed can many banks, brokerage firms, and other institutions transfer the assets.
The legal framework is relatively straightforward. The practical work of gathering documents, coordinating family members, and completing the required procedures is often much more demanding.
2. United States: The Court Appoints an Administrator
(Key focus: Probate court supervision, intestacy laws, and the absence of personal instructions.)
The United States follows a different approach.
When a person dies without a valid will, the estate generally passes through probate, where the court appoints an Administrator to manage the probate estate.
Unlike an Executor, who is nominated by the deceased in a valid will, an Administrator is appointed by the court in accordance with the applicable state law.
State intestacy laws determine who inherits the probate estate and in what shares.
The deceased's personal wishes are no longer available to guide the administration or distribution of those assets.
Not all assets become part of the probate estate. Assets held in trust, jointly owned property, and accounts with designated beneficiaries generally pass directly to the surviving owner or beneficiary.
Although the details vary from state to state, the overall principle is the same:
Without a valid will, the law—not the individual—determines who administers the probate estate and how probate assets are distributed.
3. When Both Countries Become Involved: Two Hypothetical Scenarios
The absence of a valid will often becomes most apparent in real-life situations.
The following hypothetical scenarios illustrate some of the practical challenges international families may face when no will is in place.
Scenario 1: The Indivisible Tokyo Home
The Situation:
Kevin, a U.S. citizen and Permanent Resident in Japan, passes away without a will in Tokyo. He leaves behind his Japanese wife and two adult children from a previous marriage who live in the U.S.
His primary asset is the family home in Tokyo, titled solely in Kevin's name. The property had not been included in any estate planning arrangement, and there was very little cash in his Japanese bank accounts.
The Legal Chain:
Because Kevin was a U.S. citizen, Japan looks to U.S. law. However, under U.S. state conflict-of-laws rules, real estate is governed by the law of its location.
Through renvoi (反致), Japanese law applies to the Tokyo home.
Under the Japanese Civil Code, the statutory inheritance shares are generally 50% for the surviving spouse and 25% for each child.
The Practical Challenge
1. Conflicting Interests: The children, living in the United States, would prefer to receive their inheritance in cash. The wife wants to continue living in the family home.
2. No Cash to Buy Out Shares: Because there are few liquid monetary assets, the wife cannot afford to buy out the children's combined inheritance share.
3. The Process Stalls: Until all the heirs reach the necessary agreement and complete the required legal procedures, ownership of the home cannot be finalized.
In practice, transferring or selling Japanese real estate often requires an Estate Division Agreement (遺産分割協議書) signed by all legal heirs.
The Takeaway:
Many people assume that the surviving spouse automatically inherits the family home or has a permanent legal right to remain there.
Although Japanese law provides important protections for surviving spouses, including the possibility of a Spousal Right of Residence (配偶者居住権), that right is not created automatically simply because one spouse dies.
Depending on the circumstances, it may require a valid will, an agreement among the heirs, or a decision by the Family Court.
Scenario 2: The Child No One Contacted
The Situation
Michael, an American citizen living in the United States, dies without a will.
He leaves behind his second wife and their child, both living in the United States. He also has an adult son from his first marriage who has lived in Japan for many years.
Although father and son remained on good terms, they saw each other only occasionally.
Nearly a year after his father's death, no one has contacted the son about the estate.
The Practical Questions
His son begins to wonder:
Am I legally entitled to inherit?
Does my father's remarriage change my inheritance rights?
Does U.S. law or Japanese law apply?
Should I contact my stepmother?
Has the estate already been distributed?
Because there is no will, he has no written record of his father's wishes. He also has no idea what assets—or debts—he left behind or how the estate is being administered.
He also has no idea what assets—or debts—he owned.
The Takeaway
Blended families are increasingly common, especially in international families.
Children from a previous marriage generally do not lose their inheritance rights simply because a parent remarries, although the applicable law and each family's circumstances will determine how the estate is ultimately distributed.
5. Q&A
Q1. If my family is on good terms, can we avoid these court disputes without a will?
A1. Good family relationships certainly help, but they do not eliminate the legal procedures required to administer an estate.
In Japan, even if all family members agree, the legal heirs generally must still complete the required inheritance procedures, including reaching unanimous agreement and preparing an Estate Division Agreement before many assets can be transferred.
In the United States, if probate is required, the estate must still be administered under the applicable state probate procedures.
Q2. What happens if a legal heir lives overseas and cannot be located?
A2. In Japan, you cannot proceed with an Estate Division Agreement without 100% participation.
If an heir is untraceable, the family must petition the Japanese Family Court to appoint an "Administrator of Absentee's Property" (不在者財産管理人の選任), adding significant court expenses and delays.
Q3. Can a U.S. probate court transfer my Japanese assets?
A3. No. A U.S. probate court does not have jurisdiction to transfer Japanese real estate or release Japanese bank accounts.
Those assets generally must be administered through Japanese inheritance procedures in accordance with Japanese law, even if the deceased was a U.S. citizen.
6. Wrap Up
A will allows you—not the default legal rules—to make the important decisions while you are still able to do so.
For international families, that may be one of the greatest gifts you can leave behind.
In our next article, we'll turn from legal procedures to another topic that often surprises international families: how Japanese and U.S. inheritance tax systems interact, and why timing can matter just as much as tax rates.
Questions or comments? If you've experienced cross-border inheritance yourself—or have questions you'd like us to explore in a future article—please leave a comment below. Your experiences and questions help us identify topics that are most useful to international families living in Japan.
Aki | Japanese | Former Head of HR in Global Finance
I believe building a long-term life in Japan requires seeing the bigger picture.
By understanding how visa, healthcare, taxes, retirement, senior care, inheritance, and family decisions fit together, you can make informed decisions and take calculated risks.
