How to Write a Will for Real Estate Inheritance: Types, Rules, and Key Considerations

For property owners, inheritance planning is an unavoidable challenge. Without a will, your cherished assets may not reach the intended beneficiaries. This article explains the necessity of wills in real estate inheritance, types of wills, rules for writing them, and key considerations.

Why Is a Will Necessary for Real Estate Inheritance?

The primary reason a will is necessary is to prevent disputes among heirs. Without a will, statutory heirs must gather to negotiate an estate division agreement, and estate division disputes have been on the rise year after year.

Who Especially Needs a Will

• Real estate owners: Unlike cash, real estate is difficult to divide and prone to disputes
• Those who want to decide asset distribution themselves: Designations in a will take precedence over statutory inheritance shares
• Those with no statutory heirs: Without a will, assets revert to the state
• Those who wish to exclude certain individuals from inheritance: Disinheritance or a zero-share designation is possible

What Types of Wills Are There?

There are three types of wills, each with different rules.

Holographic Will

A will in which the testator handwrites the entire text, records the date and name, and affixes a seal.

• Advantages: No cost, can be created at any time
• Disadvantages: Risk of invalidity due to formal defects, possibility of loss or falsification

Since July 2020, a storage system at the Legal Affairs Bureau has been available, reducing the risk of loss.

Notarized Will

A will prepared by a notary based on the testator's intentions.

• Advantages: No risk of formal defects, original kept at the notary office
• Disadvantages: Notary fees apply, requires two or more witnesses

For real estate inheritance, a notarized will is recommended for its high reliability.

Secret Will

A method in which the content of the will remains confidential while a notary certifies its existence. This is rarely used in practice.

How Should a Will for Real Estate Inheritance Be Written?

When documenting real estate in a will, it is important to include accurate information.

How to Describe Real Estate

Record the following information in the will exactly as it appears in the property register.

• Land: Location, lot number, land category, area
• Building: Location, building number, type, structure, floor area
• Condominium: Display of the entire building, plus display of the exclusively owned portion

Since a postal address and the registered location may differ, always verify the property register.

Basic Structure of a Will

1. Write the heading "Will"
2. Clearly state the heirs and the assets to be inherited
3. Designate an executor (to facilitate smooth processing)
4. Record the date accurately (vague dates such as "an auspicious day" are invalid)
5. Signature and seal (official registered seal recommended)

Key Points to Watch Out for in a Real Estate Inheritance Will

Be sure to note the following points unique to real estate.

Consideration of Statutory Reserved Shares

Even if a will bequeaths all assets to a specific heir, other statutory heirs have the right to claim their reserved share (1/2 of the statutory inheritance share). A will that infringes on reserved shares can become a source of disputes.

Avoiding Co-ownership

If real estate is co-owned by multiple heirs, the consent of all parties is required for sale or utilization, making management difficult. Where possible, arrange for a single heir to inherit the property, or consider compensatory division.

Accounting for Inheritance Tax

Understand the inheritance tax assessed value of the real estate in advance, and pursue a comprehensive inheritance strategy including an asset strategy.

Periodic Review

If real estate is sold or acquired, or if family circumstances change, the will should be reviewed.

The Will Creation Process

1. Inventory of assets: List all real estate and financial assets owned
2. Confirmation of heirs: Verify statutory heirs using family register documents
3. Determine distribution policy: Decide who inherits what
4. Draft the will: Prepare as a holographic or notarized will
5. Storage: Store via the Legal Affairs Bureau storage system or at a notary office

Frequently Asked Questions (FAQ)

Q. At what age should I create a will?

You should consider creating one as soon as you own real estate. Regardless of age, it is important to be prepared for unexpected circumstances.

Q. Can a will be rewritten multiple times?

Yes. Since a will with a more recent date takes precedence, it can be updated as many times as needed in response to changing circumstances.

Q. How much does it cost to create a notarized will?

Notary fees are required based on the value of the assets. If the assessed value of the real estate is 50 million yen, the fee is approximately 29,000 yen.

Q. Can real estate inheritance proceed without a will?

It is possible, but an estate division agreement among all statutory heirs is required, and if no agreement is reached, there is a risk the matter may escalate to mediation or adjudication in family court.