Trust System for Educational Gifts: A Call for Extension from New Trust Association President

In a recent interview with the Nihon Keizai Shimbun, Hiroshi Kubota, the newly appointed president of the Trust Association and the head of Mitsubishi UFJ Trust and Banking Corporation, advocated for the extension of the non-taxable educational gift system. This system, which allows individuals to gift up to 15 million usd tax-free for educational purposes, is set to expire in March 2026. Kubota emphasized the importance of extending or even permanently instituting this system, particularly from the standpoint of passing wealth to the working generation. Additionally, he expressed his enthusiasm for embracing digital technologies to enhance trust services and ensure their relevance in future financial landscapes.

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Hiroshi Kubota, who took on the role of president at the Trust Association on April 2, 2025, shared his views on critical financial policies and innovations. One of the main topics discussed was the educational gift system, which allows individuals to transfer up to 15 million usd tax-free for educational purposes. Kubota called for the extension or permanent establishment of this system, which is currently set to expire in March 2026. He explained that such a move would facilitate the transfer of assets to the working generation, benefiting both families and society at large.

Kubota’s appointment also marked a renewed commitment to embracing digital technologies in the trust industry. He highlighted the potential for blockchain technology to revolutionize trust services, underscoring the importance of evolving with the times to meet future needs. His focus on innovation was evident as he also expressed plans to explore new business ventures aimed at generating 30 billion usd in gross profit by 2034.

At a press conference held on the same day as his appointment, Kubota outlined his vision for leveraging digital tools, particularly blockchain, to enhance transparency and efficiency in trust services. He also stressed the importance of developing trust solutions that are better suited for the next generation, reflecting the changing financial landscape.

Kubota’s new role at the Trust Association aligns with Mitsubishi UFJ Trust and Banking Corporation’s broader strategy to position itself as a leader in digital financial services. With an eye on future growth and the evolution of the trust industry, Kubota’s leadership marks a new chapter in the modernization of the sector.

What Undercode Says:

Hiroshi Kubota’s appointment as president of the Trust Association comes at a time when the financial services industry is rapidly evolving, especially in terms of integrating technology. His emphasis on the continuation or permanent establishment of the educational gift system is particularly noteworthy. The non-taxable gift program, which currently allows up to 15 million usd to be transferred tax-free for educational purposes, has provided significant financial relief for many families. Extending or even making this program permanent would be a wise decision, as it supports intergenerational wealth transfer and provides a financial safety net for the education of future generations.

Moreover, Kubota’s focus on digital innovation, specifically in the form of blockchain, signals a shift toward more modernized, transparent, and secure trust services. Blockchain’s distributed ledger system offers a promising way to reduce fraud, increase efficiency, and improve transparency in the financial industry. The ability to track assets and transactions in real-time could provide significant benefits for both trust service providers and their clients. This forward-thinking approach indicates that the Trust Association is looking to lead the way in adopting next-generation technologies.

Kubota’s ambitious goal of creating a new business venture that will generate 30 billion usd in gross profit by 2034 shows a strong commitment to the growth and sustainability of the trust industry. The of innovative business models and investment in digital infrastructure could potentially reshape how trust services are delivered, making them more accessible and relevant to the digital-native generation. With more families and businesses embracing technology, Kubota’s vision of a tech-driven trust industry is timely and will likely resonate with a broad audience.

Additionally, Kubota’s desire to create a more robust and user-friendly trust system aligns with global trends in finance. Across the world, financial institutions are incorporating technologies like blockchain, artificial intelligence, and big data analytics to offer more personalized and efficient services. As Japan’s financial sector remains highly regulated, Kubota’s leadership in combining technology with traditional trust services may serve as a model for other nations looking to innovate within this space.

The combination of forward-looking digital strategies and advocacy for policies that support asset transfers will help shape the future of wealth management in Japan. As the working generation faces challenges such as economic uncertainty and the rising costs of education, Kubota’s efforts to ensure financial solutions are more adaptable and supportive of societal needs are crucial.

Fact Checker Results:

Hiroshi Kubota’s call for extending the educational gift system aligns with government discussions about supporting intergenerational wealth transfer.
The adoption of blockchain technology in trust services is a growing trend globally, with Japan also exploring its potential applications in finance.
Kubota’s goal to generate 30 billion usd by 2034 reflects realistic growth strategies commonly seen in global financial institutions aiming for sustainable expansion.