Solutions for the 100-year-life era! Bringing peace of mind through asset management and succession planning, Sumitomo Mitsui Trust Bank | Sumitomo and Co-Creation—Articulating a Vision— | Current Major Activities

According to the Population Estimates January 2024 Report by the Statistics Bureau of the Ministry of Internal Affairs and Communications, Japan’s population as of January 1, 2024 was 124.09 million, of whom 36.228 million were aged 65 or over, accounting for 29.2% of the population. As defined by the World Health Organization, Japan became a “super-aged society” in 2007, which is one where those aged 65 or over account for more than 21% of the population. They will soon exceed 30%. Japan, with average life expectancy of more than 80 years, is a leader in longevity. In view of population aging in Japan, the Japanese term shukatsu, meaning “preparation for the end of life,” is increasingly heard.

Sumitomo Mitsui Trust Bank provides services to support preparation for the end of life from the perspectives of asset management and succession planning. The bank established the 100-Year Life Solution Department in April 2019, just as the term “100-year-life era” was gaining popularity. The bank’s greatest strength is its expertise in everything pertaining to trusts. A trust is a legal arrangement where one party, settlor, transfers assets to another party, the trustee, to hold and manage for the benefit of a third party, the beneficiary.

Under the Trust Business Act of 1922, Mitsui Trust was established in Tokyo in 1924 as Japan’s first trust bank and Sumitomo Trust was established in Osaka the following year. Following mergers and consolidation, Sumitomo Mitsui Trust Bank was established in 2012. The 100-year history of the bank, is synonymous with that of trusts in Japan.

In the 100-year-life era, what preparation for the end of life entails is changing. According to the bank, while inheritance planning has traditionally been the focus, addressing the following three issues is becoming increasingly important: (1) managing funds to prepare for possible cognitive decline, notably dementia, (2) ensuring a safe and secure living environment to support overall well-being, and (3) organizing estate affairs to minimize complications for heirs after the person’s passing.

Preparation for the end of life previously and in the 100-year-life era (from Sumitomo Mitsui Trust Bank seminar materials)

Offering diverse options that respect individuals’ intentions

In response to these changes in what preparation for the end of life entails, Sumitomo Mitsui Trust Bank, centering on the 100-Year Life Solution Department, offers products and services in three areas: (1) asset management, (2) post-death administration, and (3) asset succession planning.

The 100-Year Life Solution Trust (100-Year Passport), launched in June 2019, is a noteworthy asset management product. It includes features to ensure preparedness for possible cognitive decline and is designed to offer peace of mind and security. A client, while in full possession of his faculties, deposits funds and designates a family member to take care of payment procedures in the event that the client’s cognitive ability becomes impaired, thereby providing security for future payments of living expenses and preventing fraud. If a person develops dementia or other cognitive impairment without any preparation, the person will be unable to make withdrawals and will need to use the adult guardianship system, which incurs significant monthly costs. The 100-Year Passport provides a simple means of asset management using a trust for those who do not wish to rely on the adult guardianship system.

The bank developed the 100-Year Life Solution Trust (100-Year Passport Plus), launched in October 2021, for people who wish to ensure preparedness for possible dementia while managing and forming their assets. Clients can invest in financial products such as trust funds and fund wraps (bundling various investment funds into a single package, allowing a client to access a diversified portfolio incorporating their preferences through one investment vehicle).

Diverse products offering vital support in the 100-year-life era (from the brochure)

The bank’s products for post-death administration include the Trust for Single Old Age (Solitary Trust). This product meets the needs of single persons who lack relatives, may become single in the future due to the death of their spouse, or have relatives but do not wish to seek their assistance or impose a burden on them. Specifically, a company established by the bank handles administrative procedures (post-death arrangements), such as the collection of the body, funeral services, settlement of hospital bills, and public pension procedures. The company also handles the sorting of household goods and other belongings, as well as the erasure of data from smartphones and other digital devices.

Additionally, the bank has provided Will Trust services since 1969 to support asset succession planning. These services include consultation for will preparation, safekeeping of wills, and execution of wills following the inheritance process. Drawing on its accumulated expertise, the bank is capable of satisfying a wide range of client needs.

While the word “will” often evokes images of older individuals, the bank provides a complimentary Housing Will service to securely store clients’ wills related to their residential property. Clients for this service are mainly people in their 20s to 40s who have mortgages. Sumitomo Mitsui Trust Bank offers custody for holographic wills related to residential property with a mortgage. If the client passes away while the mortgage is still being repaid, the bank will petition the family court to probate the holographic will (to prevent forgery or alteration), thereby simplifying and streamlining the inheritance process for the property.

As the concept of “well-being”—encompassing complete physical, mental, and social health—has gained widespread recognition, Sumitomo Mitsui Trust Bank emphasizes “financial well-being.” This refers to the state of being able to live a healthy and secure life without financial worries and maintaining a positive outlook on money.

People’s ideas and preferences concerning preparation for the end of life vary greatly and families and households are becoming increasingly diverse in terms of their structure and composition. The bank is committed to enhancing its clients’ financial well-being by actively developing a range of products in asset management and succession planning. By offering diverse options, the bank aims to meet the unique needs and preferences of each client.

Sending the message of “live with joy”

The bank is actively involved in providing medical and health-related information and organizing events to support a positive lifestyle in the 100-year-life era. In addition to its own initiatives, the bank collaborates with other companies to promote the message of “live with joy” through walking events, seminars on the latest medical treatments, and health promotion activities tailored to a long life.

Health promotion event for the 100-year-life era held in cooperation with TANITA Corporation

Although we are now living in a society where longevity is commonplace, not everyone feels confident or desires to live to be 100 years old. Sumitomo Mitsui Trust Bank is dedicated to helping people overcome these concerns and embrace life with a positive outlook.

Journalist Junichiro Hori on Sumitomo’s DNA: The asset management and succession planning products and services of the 100-Year Life Solution Department not only honor and fulfill the individual’s wishes but also help strengthen family bonds and rebuild connections, fostering a renewed sense of unity. They are at the heart of the Sumitomo Mitsui Trust Group’s business, embodying values directly related to the Group’s Reason for Existence (Purpose), Management Principles (Mission), Ideal Model (Vision), and Codes of Conduct (Values). Within the Group’s medium- to long-term value creation strategy, initiatives addressing the 100-year life era are classified as “impact materiality”—the most critical issues that drive social value through businesses focused on solving societal challenges.; “Truthfulness and loyalty,” one of the Group’s core values, originates from the founding principles of Sumitomo Trust. It is also closely linked to the concept of Banji Nissei (Do your best prudently and meticulously in all aspects of life), as expressed in the Monjuin Shiigaki, the Founder’s Precepts, which emphasize that anyone aspiring to be a merchant must first cultivate honesty and integrity.; In the management and succession planning of valuable assets, it is crucially important not only to earn clients’ trust, so they will consider the bank’s proposals, but also to embody “truthfulness and loyalty” and “put one’s heart into every action.” This commitment ensures that the clients’ wishes entrusted to the bank are fulfilled. Sumitomo’s business philosophy is the cornerstone of this approach.

Solutions for the 100-year-life era! Bringing peace of mind through asset management and succession planning

Offering diverse options that respect individuals’ intentions

Sending the message of “live with joy”

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