Inheritance of Real Estate in Sendai Without a Will | Legal Succession Shares and How to Proceed with Estate Division Agreements

What Happens to Real Estate Inheritance When There Is No Will

When a parent passes away and no will is found, the remaining real estate is inherited according to procedures established by law. Inheritance without a will is called "legal succession," in which legal heirs designated by civil law divide the estate based on the proportions specified by law (legal succession shares).

However, legal succession shares are merely a "standard," and if all heirs agree, other proportions and division methods are also possible. This is called an "estate division agreement."

Real estate in Sendai City is required to undergo inheritance registration (change of ownership) after an inheritance occurs. As of April 2024, inheritance registration became mandatory, and if registration procedures are not completed within three years of learning of the inheritance, a fine of up to 100,000 yen may be imposed. It is important to proceed with these procedures promptly.

Basics of Legal Heirs and Legal Succession Shares

Legal heirs as defined by civil law are determined by the relationship to the decedent (the deceased) as follows.

Spouse

A spouse is always an heir. Common-law spouses have no right of succession.

Blood Relatives (in order of priority)

| Priority | Heir | Succession Share (if spouse exists) |

|----------|------|-----------------------------------|

| 1st | Child (lineal descendant) | Spouse 1/2, Child 1/2 |

| 2nd | Parent (lineal ascendant) *if no child | Spouse 2/3, Parent 1/3 |

| 3rd | Sibling *if no child or parent | Spouse 3/4, Sibling 1/4 |

If there are multiple children, the children's succession share (1/2) is divided equally among them. For example, if there are three children, each receives 1/6.

Substitute Succession

If a child who would otherwise be an heir has already passed away, that child's child (grandchild) becomes an heir in their place. This is called substitute succession.

Identifying Heirs: Gathering Family Registers Is the First Step

To proceed with an estate division agreement, you must first accurately determine "who are the heirs." This requires obtaining all family registers of the decedent from birth to death.

If the decedent lived in multiple municipalities during their lifetime, applications to obtain family registers must be submitted to each municipal office. It is important to check thoroughly, as acknowledged children and children from a previous marriage (if there is a divorce history) may also be included as heirs.

In Sendai City, family registers of persons with a registered domicile within Sendai City can be obtained at Sendai City Hall and each ward office (mail requests are also possible).

How to Proceed with an Estate Division Agreement

Step 1: Confirm All Heirs and Contact Them

After confirming the heirs through family register investigation, contact all of them. If any heirs are missing or lack sufficient decision-making capacity due to dementia or other reasons, applications to the family court (such as the appointment of a property manager for an absent person or appointment of a legal guardian) may be necessary.

Step 2: Understand the Full Picture of the Estate

Organize a complete picture of the estate, including non-real estate assets (savings, stocks, debts, etc.).

For real estate, please check the following:

Step 3: Discuss Division Methods

All heirs discuss and decide who will acquire what. For real estate, one of the previously mentioned methods—liquidation division, compensation division, or co-ownership—is selected.

Discussions can be conducted via email or written correspondence, but since emotional conflicts often arise, it is effective to request a lawyer or administrative scrivener to attend and mediate when necessary.

Step 4: Prepare an Estate Division Agreement Document

Once agreement is reached, record the contents in an Estate Division Agreement Document. The document must clearly state the following:

The Estate Division Agreement Document requires official seals from all parties, with a seal certificate (issued within three months) attached.

Inheritance Registration (Change of Ownership) Procedures

Once the estate division agreement is complete, proceed with the change of ownership registration (inheritance registration) for the real estate. The application is submitted to the Legal Affairs Bureau (Sendai District Legal Affairs Bureau and its branch offices).

Required Documents

Registration License Tax

Inheritance registration is subject to registration license tax. The calculation is "Fixed Asset Tax Assessment Value × 0.4%." For example, if a property has an assessed value of 10 million yen, the registration license tax would be 40,000 yen.

Note that from 2021 to 2026, there are certain exemptions for ownership transfer registration of land due to inheritance (land with a fixed asset tax assessment value of 1 million yen or less is tax-exempt).

Do It Yourself or Hire a Judicial Scrivener?

Inheritance registration can be done on your own, but specialized knowledge is required for document collection and preparation. If you hire a judicial scrivener in Sendai City, the cost varies depending on the number and complexity of properties, but typically ranges from around 50,000 to 150,000 yen.

For complex cases—such as multiple properties, many heirs, or inclusion of agricultural land—hiring a professional is advisable.

If Agreement Cannot Be Reached: Mediation and Adjudication

If agreement cannot be reached among heirs, an application for estate division mediation can be filed with the family court. If mediation fails to produce agreement, the case proceeds to adjudication, where a judge determines the division method.

In Sendai, the Sendai Family Court (Aoba Ward, Honcho) has jurisdiction. Since mediation and adjudication are time-consuming (taking several months to several years), aiming for early voluntary agreement is best.

Summary: It Is Important to Begin Inheritance Procedures Promptly

Inheritance of real estate without a will proceeds through three steps: identifying heirs, conducting an estate division agreement, and performing inheritance registration. With the mandatory inheritance registration requirement that began in April 2024, the risks of neglecting these procedures have increased.

If you are considering selling or otherwise utilizing inherited real estate, consulting with a real estate company at the time of the estate division agreement can provide useful information for choosing a division method. エムアセッツ handles consultations regarding the sale and rental management of inherited real estate in Sendai City. Please feel free to contact us first, including for referrals to professionals.