"Inheritance AI" Adds Lifetime Gift Simulation Feature ── Enabling Comparison Between Annual Gifts and Inheritance Settlement Taxation

Mycat Inc. (Headquarters: Meguro-ku, Tokyo) announces the addition of a lifetime gift simulation feature to its inheritance tax simulation service "Inheritance AI" (https://souzoku-ai.xyz).

Overview of New Features

The lifetime gift simulation feature allows AI to simulate the impact on future inheritance tax amounts for two methods: annual gifts (暦年贈与) and the inheritance settlement taxation system (相続時精算課税制度).

Key input items are as follows:

• Estimated current inheritance assets

• Number of legal heirs

• Planned gift amount and period

• Recipient of the gift (child, grandchild, etc.)

Response to the 2024 Tax Reform

The tax reform implemented from January 2024 has significantly changed the gift tax system.

Revisions to Annual Gifts In the calculation of inheritance tax, the period for adding annual gifts made before the start of inheritance has been gradually extended from the conventional 3 years to 7 years. This makes starting gifts earlier even more important.

Revisions to Inheritance Settlement Taxation A new basic deduction of 1.1 million yen per year has been established for the inheritance settlement taxation system. Gifts within this basic deduction are not added to the inheritance tax calculation, thereby expanding the benefits of utilizing this system.

Which to Choose?

Which is more advantageous, annual gifts or inheritance settlement taxation, depends on individual circumstances such as the size of estimated inheritance assets, the age of the donor, and the duration of the gift.

As a general trend, there are comparison points as follows:

• For long gift periods: Annual gifts tend to be more advantageous

• For gifting a lump sum at once: Inheritance settlement taxation tends to be more advantageous

• For older donors: It is necessary to consider the addition period for annual gifts

Utilizing Simulation Results

This feature allows users to compare simulation results for both methods side-by-side, providing an indication of which method is more suitable for their individual situation.

How to Use

It can be used for free from the "Inheritance AI" website.

* This service does not constitute tax consultation under the Certified Public Tax Accountant Act. Please consult with a tax accountant or other professional when executing lifetime gifts.

■ Company Profile
Company Name: Mycat Inc.
Established: February 5, 2025
Location: 2-7-22 Mita, Meguro-ku, Tokyo
Business Activities: Planning, development, and operation of AI-powered services for SMEs and individuals
Corporate Website: https://mycat.business
Contact: info@mycat.love