The marginal maximum rate of inheritance tax, gift tax, individual income tax in Japan is 55 percent. As a result, many wealthy Japanese are interested in the integration of asset management and tax management.

However, securities are evaluated at market value for the inheritance taxation standard in Japan, and real estate and unlisted stocks are done according to the method set by the National Tax Agency—which makes the integration arduous.

That’s where Capital Asset Planning, Inc. can help with its Wealth Management Workstation (WMW) system. It performs daily market value valuations for securities and valuations based on inheritance tax laws for real estate and unlisted stocks.

WMW enables clients to visualize issues and solutions to identify where problems exist and what solutions are needed. This enables them to improve their financial portfolios consisting of cash and deposits, stocks, investment trusts, and real estate.

“Business growth and business succession are important issues for wealthy families in Japan, and especially when they consider business succession, tax planning will be definitely required. We provide wealthy Japanese with solutions based on integrated consulting of tax management and asset management,” says Masaichi Kitayama, the CEO of Capital Asset Planning, Inc.

Currently, Capital Asset Planning is managing 3,400 families and 1.4 trillion Yen in assets with WMW.

WMW uses AWS to provide clients with customized development to support the on-premises operation of major financial institutions. The key is to provide solutions with embedded financial products that each financial institution wants to sell. Capital Asset Planning feeds the results generated by WMW to the information systems of financial institutions through API. This enables financial institutions to display proposals and quotations of financial products automatically on their platform.

For one of its major life insurance clients, Capital Asset Planning has developed a goal-based financial planning system and insurance quotation and application system, which enable their customers to make a contract on various insurance services online. The company has also worked with a megabank. When the megabank offers a loan to an unlisted company, it obtains the financial statements of the borrower. Based on the obtained financial statements, Capital Asset Planning carries out the valuation of the company’s own shares in accordance with the inheritance tax law and clarifies the total assets of the family members of the borrower’s CEO. Then, WMW considers the ability to pay inheritance tax, identify where there are problems in the financial portfolio based on rules, and automatically display what products and solutions are required by using AI.

What separates Capital Asset Planning is that they have a variety of standardized calculation libraries (more than 100 types) for the calculation logic function, which can be provided by combining some logic for each financial institution or customized fully for them. This not only increases development efficiency but also allows the company to customize the system solutions containing financial products that each financial institution wants to sell individually. By using these standardized calculation libraries, the company has the advantage of reducing development cost.

With existing clients as the top companies in their respective industries, Capital Asset Planning is currently planning to demonstrate Whole Life Financial Planning system in the virtual space of the Metaverse.