Japan's State Treasury Receives Record Amount of Unclaimed Assets in FY2024
The Japanese government has received a staggering 129.1 billion yen (approximately 828 million dollars) in unclaimed assets from deceased individuals without heirs in fiscal year 2024, marking a record high since comparable data became available in 2013. This figure is a significant increase from the 2013 amount of 33.6 billion yen (around 215 million dollars), representing a 3.8-fold rise.
These unclaimed assets are transferred to the state after a liquidator appointed by the family court settles unpaid taxes, funeral expenses, and other associated costs. According to Japanese law, if there are no heirs, such as a spouse, children, parents, or siblings, or if there's no will, the property cannot be inherited by anyone.
The surge in unclaimed assets can be attributed to several factors. Firstly, the increasing number of elderly individuals living alone is a result of the declining birthrate, an aging society, and a higher percentage of people choosing to remain single. Secondly, even when a deceased person has heirs, some older individuals opt to waive the inheritance, citing the complexity and hassle of managing the process.
Lawyer Yoshida Shuhei, the deputy head of the Japanese Inheritance Association, highlights a potential solution. He suggests that assets could be donated to caregivers or charitable organizations. However, he emphasizes the importance of individuals starting to plan for their property early on, as a will is necessary to donate assets after death. This proactive approach ensures a smoother transition of assets and avoids potential complications.
