Trusts targeting people who donate for the education of their children or grandchildren are proving popular as a provision introduced in April exempts such money from the gift tax.
During the three months to June, some ¥123.5 billion was held in trust for such donations at the nation’s three major trust banks and Resona Bank under some 17,900 contracts. The trusts have been started at a faster pace than expected, officials at the banks said.
Lump-sum donations for the education of grandchildren or children, with an upper limit of ¥15 million per person, are exempt from the tax under the measure, which is effective until the end of 2015.
At Mitsubishi UFJ Trust and Banking Corp., ¥46.8 billion was put in trusts under 6,740 contracts by June 30. Bank of Tokyo-Mitsubishi UFJ in the same corporate group started to serve as its agent to increase users of the trust.
A total of ¥41.8 billion was entrusted to Sumitomo Mitsui Trust Bank under some 6,200 contracts. Around half of the contracts were started by new customers, the bank said.
Resona holds ¥19.94 billion in the trusts under 3,203 contracts. Some 40 percent of the customers were new to Resona, according to the bank. The total amount at Mizuho Trust & Banking Co. was some ¥15 billion under some 1,800 contracts.