JAPAN Law and Practice Contributed by: Atsushi Oishi and Makoto Sakai, Mori Hamada & Matsumoto
9. Planning for Non-Traditional Families 9.1 Children A child born out of wedlock can inherit the estate of a deceased parent if the parent acknowledges the child; this also applies to adopted children. These children will be treated in the same manner as other children. Surrogate pregnancy arrangements and posthumous conceptions are not permitted in Japan. 9.2 Same-Sex Marriage Same-sex marriage is not currently permitted under the Civil Code, although there are a number of cases in which the validity of the current system is disput - ed. There are practical arrangements through which a same-sex married couple achieves basically the same rights as a couple in a statutory marriage. A number of local governments issue a certificate of same-sex “partnership” for same-sex couples. A person making a charitable donation gets certain tax benefits, such as deducting the amount from their income or crediting against the tax amount. Moreover, certain exemptions from capital gains taxa - tion are automatically triggered upon the donation of assets with accumulated capital gains to charities. For further details, see 3.1 Types of Trusts, Foundations or Similar Entities , 3.3 Tax Considerations: Fiduciary or Beneficiary Designation and 3.4 Exercising Con- trol Over Irrevocable Planning Vehicles . 10.2 Common Charitable Structures 10. Charitable Planning 10.1 Charitable Giving Foundations are typically used for charitable planning. For more details, see 3.1 Types of Trusts, Founda- tions or Similar Entities , 3.3 Tax Considerations: Fiduciary or Beneficiary Designation and 3.4 Exer- cising Control Over Irrevocable Planning Vehicles .
Citizenship If either the father or the mother is a Japanese citizen when their child is born, the child obtains Japanese nationality. A person who is not a Japanese citizen may acquire Japanese nationality through naturalisa - tion, which is under the jurisdiction of the Minister of Justice. 7.2 Expeditious Citizenship If a person’s father or mother is a Japanese citizen when they apply for Japanese citizenship with the Minister of Justice, that person may acquire citizen - ship without the need to satisfy the requirement of continuous residence for at least five years. Even in that case, the applicant must be residing in Japan during the process of naturalisation. 8. Planning for Minors, Adults with Disabilities and Elders 8.1 Special Planning Mechanisms There are mechanisms for minors and adults with disabilities. Typically, a special needs trust is used in these cases. 8.2 Appointment of a Guardian A statutory guardian must be appointed with court approval. In addition, a voluntary guardian may be appointed before a notary public. Creating a special needs trust has recently become more popular among wealthy families, as it is more flexible than appointing a guardian. 8.3 Elder Law There is a national pension system in Japan. How - ever, as pension payment under the national pension system is limited to a minimum standard, people are expected to have a separate personal fund for future financial stability.
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