What to do when heirs cannot agree: the flow of estate division conciliation and adjudication, and when to consult an attorney

In short: if co-heirs cannot reach or hold an estate division agreement, estate division conciliation or adjudication at the Family Court can be used. Estate division conciliation is a discussion procedure aiming at agreement under the involvement of a judge and a conciliation committee. If estate division conciliation fails, estate division adjudication proceedings automatically begin. The person concerned may file personally. Yotsuba Administrative Scrivener Office, in a non-disputed scope, collects family registers, investigates heirs, organises the inheritance relationship, organises estate materials, handles the certified list of statutory heirs and prepares an estate division agreement after agreement is reached. It does not negotiate among heirs, judge legal disputes, act as an agent in conciliation or adjudication, or negotiate a settlement with the other party as administrative-scrivener work.

When an agreement cannot be reached

If co-heirs cannot reach or hold an estate division agreement, estate division conciliation or adjudication at the Family Court can be used (Civil Code, Article 907).

The person may file personally. It is not the case that "an attorney must be retained to use the Family Court".

Parties to estate division

The persons who are parties to estate division, such as co-heirs and comprehensive devisees, must all participate in the procedure.

In conciliation, a co-heir other than the petitioner files against the other co-heirs and other parties. If there is an assignee of an inheritance share or another person, the parties may differ; confirm individually with the Family Court or an attorney.

What is estate division conciliation?

Estate division conciliation is a discussion procedure at the Family Court aiming at agreement under the involvement of a judge and a conciliation committee, while confirming each party's circumstances, desired division, estate materials and, as necessary, appraisal.

It is not a procedure in which "a conciliation committee decides which party is right".

Where to file conciliation

Conciliation is filed, in principle, with the Family Court having jurisdiction over the address of one of the other parties, or a Family Court agreed by the parties.

Costs and required documents for conciliation

The filing fee for estate division conciliation is a revenue stamp of 1,200 yen per deceased person plus contact postage. The postage differs by court.

The required documents differ depending on the inheritance relationship. Basic materials include the petition, a list of parties, an inventory of the estate, family registers, a certificate of residence or family register attachment, and estate materials such as real estate and deposits. A copy of the certified list of statutory heirs may be submitted instead of family registers in some cases.

What happens if conciliation fails?

If discussion does not reach agreement and conciliation fails, estate division adjudication proceedings automatically begin.

In adjudication, the judge decides the method of division in consideration of the type and nature of the estate, the circumstances of each party and all other circumstances.

Difference from conciliation for the legally reserved portion

Estate division conciliation is different from conciliation for a claim for the legally reserved portion. If estate division conciliation fails, estate division adjudication proceedings automatically begin. Conciliation for a claim for the legally reserved portion is not treated the same way.

If conciliation for a claim for the legally reserved portion fails, it does not automatically move to adjudication for the legally reserved portion as in estate division. For the basics of the legally reserved portion, see What is the legally reserved portion?.

Filing directly for adjudication

Estate division may be filed directly for adjudication. It is not the case that "conciliation must always come first".

However, if the judge decides that it is better to first seek a solution through discussion, the case may be referred to conciliation. When filing directly for adjudication, the filing is made with the Family Court having jurisdiction over the deceased's last address, or a Family Court agreed by the parties.

After adjudication

Adjudication is a decision by a judge. If a party is dissatisfied with the adjudication, for cases in which an immediate appeal is allowed, there is a system to file an immediate appeal in principle within two weeks from the day after receiving notice of the adjudication.

It is not the case that "an adjudication necessarily becomes final the moment it is issued". Whether an appeal is possible and management of the period should be confirmed with an attorney.

The court is not an estate search agency

Estate division proceedings are not a system whose purpose is to find the estate itself. The court may encourage submission of materials, but a person claiming that there is other estate must in principle submit supporting materials.

For estate investigation, see Investigating the inherited estate and preparing an inventory of assets.

When the scope of the estate is disputed

Distinguish "what and how to divide" from "whether something is part of the estate in the first place". For example, there may be a dispute that real estate in an heir's name is substantially the deceased's asset.

If the existence, scope or rights of the estate themselves are disputed, a separate procedure such as conciliation for dispute adjustment concerning the estate or a civil lawsuit may be relevant. Confirm the choice of procedure with an attorney.

When the valuation of real estate is disputed

For the valuation of inherited real estate, if the parties can agree, the agreed value may be used. If they cannot agree, an appraisal may be necessary.

It is not the case that the value is necessarily decided by any one of the fixed asset tax value, a real estate company's appraisal or the inheritance tax value. Appraisal is performed by a real estate appraiser. Appraisal costs also arise.

Relationship with renunciation of inheritance

Even while estate division agreement or conciliation is proceeding, the period for consideration of renunciation is a separate matter. Renunciation is in principle three months from when the heir became aware that inheritance had commenced for him or her.

It is not the case that "because discussions are ongoing, the three-month period for renunciation automatically stops". For details, see What to know before considering renunciation or qualified acceptance.

Relationship with the ten-year rule

Even after ten years from the commencement of inheritance, estate division itself does not become entirely impossible. In principle, division based on the specific shares reflecting special benefits and contributions is restricted.

For transitional measures and exceptions, see A guide to inheritance procedure deadlines. Individual judgement is an attorney.

When to consult an attorney

In the following cases, consider consulting an attorney.

• An heir clearly refuses a division proposal.
• There is conflict over special benefits or contributions.
• The validity or interpretation of a will is disputed.
• The scope or ownership of the estate is disputed.
• There is a claim for the legally reserved portion.
• Filing for conciliation is being considered.
• The other party has retained an attorney.
• Direct negotiation among heirs is difficult.

What an administrative scrivener can and cannot do

If disagreement among heirs has become a concrete dispute, legal judgement, negotiation, agency in conciliation or adjudication and dispute handling are an attorney.

Yotsuba Administrative Scrivener Office, in a non-disputed scope, collects family registers, investigates heirs, organises the inheritance relationship, organises estate materials, handles the certified list of statutory heirs and prepares an estate division agreement after agreement is reached. It does not act as an agent for one party to the dispute and negotiate, persuade or coordinate with other heirs.

Roles of specialists

• The person concerned → may file conciliation or adjudication personally
• Preparation of documents to be filed with the Family Court by a specialist → a judicial scrivener or attorney
• Agency in conciliation or adjudication, negotiation, individual legal judgement and dispute handling → an attorney
• Real estate appraisal → a real estate appraiser
• Inheritance registration → the person concerned / a judicial scrivener or attorney
• Tax → the person concerned / a tax accountant
• Real estate sale appraisal and brokerage → Yotsuba Real Estate Co., Ltd.

Yotsuba Administrative Scrivener Office and Yotsuba Real Estate Co., Ltd. handle their work under separate businesses and separate contracts. Our office receives no referral fee.

How to proceed with a consultation on an inheritance dispute 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, organisation of estate materials and preparation of an estate division agreement after agreement is reached, as materials for judging the dispute.

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. What if one sibling does not agree to the estate division agreement?
A. If co-heirs cannot reach an agreement, estate division conciliation or adjudication at the Family Court can be used. The person may file personally.

Q. Does estate division conciliation become a lawsuit?
A. Estate division conciliation is a discussion procedure aiming at agreement. If conciliation fails, estate division adjudication proceedings automatically begin.

Q. What happens if conciliation fails?
A. If estate division conciliation fails, estate division adjudication proceedings automatically begin.

Q. Can I file directly for estate division adjudication?
A. Direct filing for adjudication is possible. However, if the judge decides that it is better to first seek a solution through discussion, the case may be referred to conciliation.

Q. Must all heirs participate in conciliation?
A. All persons who are parties to estate division, such as co-heirs and comprehensive devisees, must participate in the procedure.

Q. Will the court search for hidden assets?
A. Estate division proceedings are not a system whose purpose is to find the estate itself. A person claiming that there is other estate must in principle submit supporting materials.

Q. What if there is a dispute over the value of real estate?
A. If the parties agree, the agreed value may be used. If not, an appraisal may be necessary. Appraisal is performed by a real estate appraiser, and appraisal costs arise.

Q. Are estate division conciliation and conciliation for the legally reserved portion the same?
A. They are different. If estate division conciliation fails, estate division adjudication automatically begins, but conciliation for a claim for the legally reserved portion is not treated the same way.

Q. Can an administrative scrivener negotiate between heirs?
A. Yotsuba Administrative Scrivener Office does not act as an agent for one party to the dispute and negotiate, persuade or coordinate with other heirs. Negotiation among heirs, agency in conciliation or adjudication and dispute handling are an attorney.

Sources (Primary Information)

• e-Gov, Civil Code, Articles 903, 904-2, 904-3, 906 and 907
• Domestic Relations Case Procedure Act, provisions on estate division and transition from conciliation to adjudication
• Courts, "Estate division conciliation"
• Courts, "General conciliation procedure"
• Courts, "Conciliation for dispute adjustment concerning the estate"
• Courts, "Q&A on estate division"
• Tokyo Family Court, "Estate division conciliation"
• Judicial Scrivener Act, Article 3
• Administrative Scrivener Act, current provisions
• Attorney Act, Article 72

This article is general information and does not guarantee the procedure, jurisdiction, costs, parties, scope of the estate, valuation, renunciation or ten-year rule of any individual estate division conciliation or adjudication. Agency in conciliation or adjudication, negotiation among heirs, individual legal judgement and dispute handling are handled by an attorney; preparation of documents to be filed with the Family Court by a judicial scrivener or attorney; inheritance registration by the person concerned or a judicial scrivener or attorney; tax by the person concerned or a tax accountant; real estate appraisal by a real estate appraiser; and real estate sale appraisal and brokerage by Yotsuba Real Estate Co., Ltd., 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.