News Release
Commencement of Handling of the Industry’s First Testamentary Substitute Trust Designed for Making Bequests to Municipalities
Mar 26, 2019
TOKYO, Japan - March 26, 2019 - ORIX Bank Corporation (“ORIX Bank”) announced today that on April 1, 2019 it will start handling the testamentary substitute trust “Simple Inheritance Trust (Special Agreement for Bequest Gift)” which enables the bequeathing of assets to municipalities. The product will be the industry’s first testamentary substitute trust that limits the recipients of bequests to municipalities.
The “Simple Inheritance Trust” is ORIX Bank’s testamentary substitute that enables customers to pass on their assets (money) without creating a will by going through a simple procedure by mail or phone. It is a principal-guaranteed*1 trust that charges no management fees. The commencement of handling of special agreements for bequest gifts will enable customers to contribute part of their assets to municipalities designated in advance, such as the municipality of their hometown. In making a bequest, customers can designate the uses to which their contributions are put from among multiple items, including “promotion of industry and tourism,” “welfare, medical and public facilities” and “environmental preservation.” This will allow them to leave their wishes for the designated regions in the form of social contributions.
According to a survey conducted by The Nippon Foundation in 2017, 42.6% of single people aged 60 years or older have an intention to make a bequest gift.*2 On the other hand, only roughly 1% of such people actually left a bequest gift, and personal property that went into the national treasury without being inherited amounted to approximately 52 billion yen in fiscal 2017.*3
The product is aimed at realizing customers’ wishes after they die by working with the Legacy Gift Promotion Organization and promoting collaboration with municipalities to enable bequest gifts.
Going forward, ORIX Bank will continue to work on developing products that can meet the diverse needs of customers and contribute to society.
*1 ORIX Bank will provide compensation for any loss in the trust principal.
*2 Source: The Nippon Foundation, “Survey on Awareness of Bequests”
*3 Source: Court, “Courts in Japan: Ministry and Agency Financial Documents for FY2017”
■ Service overview
| Name | “Simple Inheritance Trust (Special Agreement for Bequest Gift)” |
|---|---|
| Eligible applicants | Individuals with Japanese nationality who have an address in Japan and do not need a guardian or any other agent aged 20 years or older as of the trust agreement date |
| Application units | From 1 million to 20 million yen (in multiples of 1 million yen) * The amount must be no more than one-third of the financial assets held by the applicant (the customer). Please pay particular attention to the legally reserved portion when making application. |
| Trust period | Maximum of 30 years from the trust agreement date to the trust termination date; provided, however, that the trust agreement will be terminated before the end of the trust period in cases such as the death of the applicant. |
| Application fee | Not charged * Bank transfer fees at the time of application are to be borne by the customer. |
| Trust fee | Management fees will not be charged either at the time of establishment of the trust or during the management period. However, the amount left after deducting from the proceeds from investment of trust funds the total amount of gains, etc. to be calculated and paid based on the trust principal and assumed dividend rate will be received by ORIX Bank as an investment fee. |
| Designated notifier of death | An individual with Japanese nationality who has an address in Japan and is aged 20 years or older on the date of the trust agreement must be designated; provided, however, that persons who need a guardian or other agent are excluded. |
| Municipalities that can be designated | Refer to the ORIX Bank website or the “List of Municipalities Eligible for Designation” which will be separately provided. |
| Early cancellation | The trust agreement can be cancelled before the trust termination date. (Cancellation of the entire agreement only is allowed.) However, as there are periods in which payment cannot be made, please refer to the product brochure for details. No cancellation fees will be charged. |
| Regular inquiries | The Legacy Gift Promotion Organization will check the current status with the applicant (the customer) and the notifier of death via email or other means once a year in the month in which the date of the trust agreement falls. |
Contact Information:
ORIX Corporation
Corporate Planning Department
Tel: +81-3-3435-3121
About ORIX:
ORIX Corporation (TSE: 8591; NYSE: IX) is a financial services group which provides innovative products and services to its customers by constantly pursuing new businesses.
Established in 1964, from its start in the leasing business, ORIX has advanced into neighboring fields and at present has expanded into lending, investment, life insurance, banking, asset management, automobile related, real estate and environment and energy related businesses. Since entering Hong Kong in 1971, ORIX has spread its businesses globally by establishing locations in 38 countries and regions across the world.
Going forward, ORIX intends to utilize its strengths and expertise, which generate new value, to establish an independent ORIX business model that continues to evolve perpetually. In this way, ORIX will engage in business activities that instill vitality in its companies and workforce, and thereby contribute to society. For more details, please visit our website: https://www.orix.co.jp/grp/en/
(As of September 30, 2018)
Caution Concerning Forward-Looking Statements:
These documents may contain forward-looking statements about expected future events and financial results that involve risks and uncertainties. Such statements are based on our current expectations and are subject to uncertainties and risks that could cause actual results that differ materially from those described in the forward-looking statements. Factors that could cause such a difference include, but are not limited to, those described under “Risk Factors” in the Company’s annual report on Form 20-F filed with the United States Securities and Exchange Commission and under “(4) Risk Factors” of the “1. Summary of Consolidated Financial Results” of the “Consolidated Financial Results April 1, 2017 – March 31, 2018.”
- View PDF of this release
- PDF
[130KB]
- PDF