Japan’s isolated elderly leave record sums to government in 2024

TOKYO – A record amount in unclaimed inheritances ended up in Japanese government coffers in 2024, as the ageing population sees soaring numbers of deaths and more people reach the end of their lives with no immediate family.

About 129 billion yen (S$1.08 billion) in unclaimed assets reverted to the Japanese treasury in 2024, according to data from the Supreme Court of Japan.

That is almost four times the 33.6 billion yen registered in 2013 when records began.

Japan’s trove of heirless fortunes appears to reflect twin problems: a decreasing population and isolation among the elderly.

Japan’s population has been steadily contracting since around 2009. Among older Japanese who pass away, a rising number are unmarried and without close relatives, the Japan Research Institute says. 

Unclaimed assets have ballooned in the past few years.

“The increasing number of deaths each year could be a factor,” said Mr Koji Nambu, a partner at law firm Miyake & Partners.

Deaths rose sharply in 2022, government data show, and have continued to surge, reaching 1.6 million in 2024. Japan’s relatively low rate of will preparation could also play a part, Mr Nambu added. 

Succession challenges are plaguing Japan more broadly.

Abandoned homes, known as akiya, are perhaps the most visible sign. Around 9 million akiya stand unoccupied, left by heirless owners or relatives who do not want the financial burden of upkeep.

With marriage rates dropping, the lack of heirs can be linked to a lack of blood relatives and the weakening of family ties, said Ms Makiko Okamoto, deputy chief researcher at JRI.

The country’s population pyramid shows swelling numbers of older generations at the top who need increasing levels of care.

“Supporting one’s closest relatives is often all people can do,” Ms Okamoto said. “It is important for elderly people without family to entrust their wishes to someone in advance.” BLOOMBERG