Japan’s Tax-Free Granny Gifts Unlocking Retiree Savings
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Shoko Iwasaki looked for years for a tax-free way to pass down a lifetime of savings to her grandson. Prime Minister Shinzo Abe has offered the 71-year-old an answer with a program now helping unlock pensioners’ hoarded wealth.
“I’m so grateful for this tax measure, which enables me to hand over my money all at once,” said Iwasaki, who lives alone in Ashiya, about 300 miles west of Tokyo. She plans to endow 15 million yen ($147,000) for the education of her grandson under an initiative introduced this year exempting tax on lump-sum gifts to children for schooling expenses.