What to know before considering renunciation of inheritance or qualified acceptance: three months, estate investigation and the procedure

In short: there are three choices for an inheritance: unconditional acceptance, renunciation of inheritance and qualified acceptance. The period for renunciation or qualified acceptance is in principle three months from when the heir became aware that inheritance had commenced for him or her. Certain acts such as disposing of inherited property may result in the heir being deemed to have made unconditional acceptance. Acceptance and renunciation of inheritance cannot in principle be withdrawn even within the period for consideration. Qualified acceptance is in principle made jointly by all co-heirs, and after the statement, liquidation procedures such as public notice, payment and realisation continue. Yotsuba Administrative Scrivener Office organises family registers, investigates the heirs, investigates the estate and prepares an inventory of assets, but does not prepare a statement of renunciation or qualified acceptance and does not make individual legal judgements.

What is the difference between unconditional acceptance, renunciation and qualified acceptance?

When inheritance commences, an heir has roughly three choices.

Type	Rough content
Unconditional acceptance	The heir succeeds to the inherited assets and debts without condition
Renunciation of inheritance	The person is treated as never having been an heir
Qualified acceptance	The heir accepts the inheritance while reserving payment of the deceased's debts and testamentary gifts only to the extent of the assets obtained by inheritance

If unconditional acceptance is made, the heir succeeds not only to positive assets but also to negative assets such as debts. If renunciation is made, the person is deemed never to have been an heir with respect to that inheritance.

From when is the three-month period for consideration counted?

The period for a statement of renunciation or qualified acceptance is in principle three months from when the heir became aware that inheritance had commenced for him or her (Civil Code, Article 915, paragraph 1).

This does not always coincide with the date the heir learned of the death. For example, if the heir later learns that he or she is an heir, that point is the starting point. If the starting point is disputed or difficult to judge, consult an attorney or a judicial scrivener early.

Does using or disposing of inherited property make renunciation impossible?

If the heir disposes of all or part of the inherited property, or performs certain other acts, the heir may be deemed to have made unconditional acceptance.

Therefore, if renunciation or qualified acceptance is being considered, using inherited property before the decision is fixed may make renunciation or qualified acceptance impossible later. What acts are deemed unconditional acceptance is an individual legal judgement. Before deciding, avoid disposing of or spending the property and consult a specialist.

What happens after renunciation? Withdrawal, inheritance by representation and the next-order heirs

A person who renounces an inheritance is deemed never to have been an heir with respect to that inheritance (Civil Code, Article 939).

Not only renunciation of inheritance, but also acceptance and renunciation of inheritance cannot in principle be withdrawn even within the period for consideration. This article does not go into the statutory exceptions to rescission; consult an attorney for individual judgement.

Renunciation of inheritance is not a ground for the renouncing person's child to inherit by representation. Renunciation may cause the next-order heir to become the heir.

What is qualified acceptance? A procedure made by all co-heirs

Qualified acceptance is a system by which the heir accepts the inheritance while reserving payment of the deceased's debts and testamentary gifts only to the extent of the assets obtained by inheritance (Civil Code, Article 922).

If there are several co-heirs, qualified acceptance must in principle be made jointly by all co-heirs. Within the three-month period for consideration, the heir prepares an inventory of the inherited assets, submits it to the Family Court and states that he or she makes qualified acceptance.

Because a person who renounces the inheritance is treated as never having been an heir, qualified acceptance is made by the other co-heirs. Consult a judicial scrivener or an attorney for the specific form and requirements.

The liquidation procedure continues after qualified acceptance

Qualified acceptance does not end when the statement is accepted.

• A person making qualified acceptance: within five days after qualified acceptance
• An estate liquidation administrator appointed in a joint inheritance: within ten days after appointment

must begin the public notice procedure stating that qualified acceptance was made and requesting creditors to file their claims. After that, liquidation procedures such as payment and realisation continue.

Public notice, payment, realisation and other liquidation procedures are the domain of a judicial scrivener or an attorney.

How far should the assets and debts be investigated before deciding?

To decide on renunciation or qualified acceptance, it is important to understand the positive and negative sides of the inherited estate. Positive assets such as bank deposits, real estate and securities, and negative assets such as loans and unpaid amounts, are organised.

For how to investigate the estate, see Investigating the inherited estate and preparing an inventory of assets. However, because there is a three-month period for consideration, the deadline must be kept in mind even while the investigation takes time.

The flow of a statement to the Family Court and the required documents

Renunciation of inheritance and qualified acceptance are in principle stated to the Family Court with jurisdiction over the deceased's last address.

The approximate costs are as follows.

Procedure	Approximate cost
Renunciation of inheritance	Revenue stamp of 800 yen (per person making the statement) plus contact postage
Qualified acceptance	Revenue stamp of 800 yen plus contact postage

The contact postage must be confirmed with each court. The required family registers differ depending on the relationship between the person making the statement and the deceased, so they cannot be listed uniformly. Qualified acceptance requires an inventory of the inherited assets.

The general flow is as follows.

1. Confirm jurisdiction.
2. Collect and prepare documents.
3. Make a statement to the Family Court.
4. Respond to any inquiries from the court as necessary.
5. Acceptance.
6. In the case of qualified acceptance, proceed to the liquidation procedure.

Extension of the period for consideration when a decision cannot be made within three months

If a decision cannot be made within three months even after investigating the estate, there is a system to petition the Family Court for an extension of the period for consideration. The petition for extension must be made within the current period for consideration.

On the other hand, it cannot be said that "once three months have passed since the death, renunciation is absolutely impossible in every case". According to the court's Q&A, in cases such as where the heir believed that there were no inherited assets at all and had reasonable grounds for that belief, a statement made within three months from the time the heir later became aware of the existence of assets may be accepted. However, this is not an automatic extension of the deadline. Consult an attorney for individual judgement.

The scope of work of administrative scriveners, judicial scriveners, attorneys and tax accountants

Yotsuba Administrative Scrivener Office, as administrative-scrivener work, collects family registers, investigates the heirs, organises the inheritance relationship, investigates the estate and prepares an inventory of assets.

On the other hand, the office does not handle the following.

• Preparation of documents to be filed with the Family Court and consultation on such document preparation → a judicial scrivener
• Individual legal judgement such as whether renunciation or qualified acceptance should be chosen, representation in Family Court proceedings, and negotiation or dispute handling with creditors → an attorney
• Tax such as inheritance tax, capital gains and the final income tax return for the deceased → a tax accountant
• Inheritance registration agency → a judicial scrivener

In an inheritance by qualified acceptance, certain assets may be deemed to have been transferred at market value for income tax purposes. Qualified acceptance is not "a simple and safe middle option". Tax judgement and filing for capital gains, the final income tax return for the deceased and other tax matters should be confirmed with a tax accountant.

How to proceed when considering renunciation or qualified acceptance in Bunkyo

Yotsuba Administrative Scrivener Office (Kohinata, Bunkyo, about five minutes' walk from Myogadani Station) guides you in stages through family register collection, heir investigation, estate investigation and preparation of an inventory of assets, which are the materials for deciding on renunciation or qualified acceptance.

For the range of heirs, see Statutory heirs and statutory shares; for deadlines, see A guide to inheritance procedure deadlines; and for the relationship with inheritance registration, see How to proceed with inheritance registration. For the flow of engagement, see Engagement Flow; for fees, see Fee Schedule; and for the whole picture, see Inheritance, Wills and Trusts.

FAQ

Q. Should I choose renunciation or qualified acceptance?
A. Which to choose is an individual legal judgement based on the assets and debts. This article does not make the judgement. Bring the result of the estate investigation to an attorney.

Q. Is the three-month period for renunciation counted from the date of death?
A. In principle, it is three months from when the heir became aware that inheritance had commenced for him or her. It does not always coincide with the date the heir learned of the death.

Q. If I renounce the inheritance, does my grandchild inherit instead?
A. Renunciation of inheritance is treated as the renouncing person having never been an heir. The renunciation is not a ground for that person's child to inherit by representation.

Q. Can qualified acceptance be made by only one heir?
A. Qualified acceptance must in principle be made jointly by all co-heirs. It is made by the co-heirs other than any person who renounced. Consult a judicial scrivener or an attorney for the specific requirements.

Q. If I have used inherited property, can I no longer renounce?
A. Certain acts such as disposal of inherited property may result in the heir being deemed to have made unconditional acceptance. Before deciding, avoid disposal or spending and consult a specialist.

Sources (Primary Information)

• Civil Code, Article 915 (period for acceptance or renunciation of inheritance)
• Civil Code, Article 919 (withdrawal and rescission of acceptance and renunciation of inheritance)
• Civil Code, Article 921 (statutory unconditional acceptance)
• Civil Code, Article 922 (form of qualified acceptance)
• Civil Code, Article 923 (qualified acceptance by co-heirs)
• Civil Code, Article 924 (effect of qualified acceptance)
• Civil Code, Article 927 (public notice and demand by a person making qualified acceptance)
• Civil Code, Article 936 (appointment of an estate liquidation administrator)
• Civil Code, Article 938 (public notice and demand by an estate liquidation administrator)
• Civil Code, Article 939 (effect of renunciation of inheritance)
• Courts, "Statement of renunciation of inheritance"
• Courts, "Statement of qualified acceptance of inheritance"
• Courts, "Extension of the period for acceptance or renunciation of inheritance"
• Courts, "Family Case Q&A"
• Judicial Scrivener Act, Article 3
• Administrative Scrivener Act, current provisions on the scope of work and restrictions on other laws
• National Tax Agency, primary materials on deemed transfer by inheritance through qualified acceptance

This article is general information and does not guarantee individual renunciation or qualified acceptance, the applicability of statutory unconditional acceptance, the effect of disposal of property, procedures, effects or tax treatment. Preparation of documents to be filed with the Family Court and consultation on such document preparation are handled by a judicial scrivener; individual legal judgement such as whether renunciation or qualified acceptance should be chosen, representation in Family Court proceedings and negotiation or dispute handling with creditors by an attorney; tax by a tax accountant; and inheritance registration agency by a judicial scrivener, each as an independent business under a separate contract. Our office receives no referral fee. Individual judgements are made by a qualified professional after a meeting. Written by Joji Uramatsu, administrative scrivener and licensed real estate broker.