Wealthy Japanese people will adopt an adult, often a grandchild or other relative, so that they have more heirs. Accordingly, every individual heir’s share of the estate is consequently smaller, which can lead to lowering the inheritance tax rate for the heirs or bring them under the threshold for the tax to apply at all.
To make this method of getting around the tax more difficult to use, the Japanese government has limited the number of adult adopted children who are counted for the purposes of inheritance taxation.
It doesn’t matter which nation it is, taxpayers will most likely be seeking ways to pay the smallest amount possible.
