Japanese Wealth Management and the Transformation of the Law of Trusts and Succession

A sea change is taking place in the law and practice of trust and wealth management in Japan. As the rapidly aging society opens up to the globalised market, a flurry of legislative reform accompanies it in the areas of guardianship (1999), trusts (2006), and succession (2018). The government introduced a number of measures to encourage intergenerational wealth transfer and diversified investment. However, neither law reformers nor government regulators have been able to comprehend the whole picture, and the court is forced to manage and tie up complicated loose ends. This article will consider the rise of 'family trusts' in Japan, where trusts are used for the purposes of asset management and succession planning, with the settlor's family member or friend serving as the trustee. After reviewing some of the recent cases. it will discuss the comparative and doctrinal implication of the Japanese development, particularly on the interface between trust law and the law of succession and on the cross-border aspect of trust relationship