"Inheritance AI" Adds Lifetime Gift Simulation Function ── Enabling Comparison of Annual Gifts vs. Inheritance Tax Settlement System

Mycat Co., Ltd. (Head office: Meguro-ku, Tokyo) announces the addition of a lifetime gift simulation function to its inheritance tax simulation service "Inheritance AI" (https://souzoku-ai.xyz).

Overview of New Features

The lifetime gift simulation function is an AI-powered feature that simulates the impact on future inheritance tax amounts for two methods: annual gifts and the inheritance tax settlement system.

The main input items are as follows:

• Estimated current inheritance assets

• Number of legal heirs

• Planned gift amount and period

• Recipient of the gift (children, grandchildren, etc.)

Response to the 2024 Tax Reform

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

Revisions to Annual GiftsIn 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 the Inheritance Tax Settlement SystemA new basic deduction of 1.1 million yen per year has been established for the inheritance tax settlement system. Gifts within this basic deduction are not added to the calculation of inheritance tax, thus expanding the benefits of utilizing the system.

Which to Choose

Whether annual gifts or the inheritance tax settlement system is more advantageous 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: The inheritance tax settlement system tends to be more advantageous

• For older donors: The addition period for annual gifts needs to be considered

Utilizing Simulation Results

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

How to Use

It can be used free of charge 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 Co., Ltd.
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