The number of Koreans giving up on re-immigrating to Korea is increasing due to the ridiculously low inheritance tax exemption limit in Korea compared to the United States.<\/p>\n
A Korean national, Mr. K, said on the 8th, \u201cWhile applying for a residence permit to move to Korea this year, the inheritance tax exemption limit in Korea and the inheritance tax exemption limit in the United States were so different that I gave up on moving to Korea.\u201d He added, \u201cI have several buildings in the United States, and I was worried that I would lose all my assets without being able to pass them on to my children, so I made that decision.\u201d<\/p>\n
In Korea, the inheritance tax exemption limit varies depending on the relationship between the heir and the deceased, but for direct descendants (children, grandchildren, etc.), the inheritance tax exemption limit is 50 million won. Spouses are exempted up to 600 million won. The tax rate starts at 10% and goes up to a maximum of 50%. On the other hand, the US has a federal estate tax exemption limit set at the federal level, which is $13.61 million for an individual as of 2024. In other words, federal estate tax is not levied on inheritances below this amount.<\/p>\n
Although inheritance tax regulations may vary from state to state, the federal exemption limit is recognized in many states. In relation to this, Sarah Park, an attorney at the Washingtonian Law Firm specializing in real estate and inheritance law in the US and Korea, explained, \u201cRecently, there has been an increase in Koreans giving up on moving to Korea because the Korean inheritance tax exemption limit is too low.\u201d<\/p>\n
Attorney Park said, \u201cInheritance is something given after death, while gifts are something given while you are alive, but in the US, the inheritance and gift tax exemption limits are the same, so there is a way to give gifts to your children before going to Korea, or to give your assets to your children in advance by setting up a trust.\u201d Attorney Park also warned, \u201cRegardless of whether you are a U.S. citizen, if you live in Korea, you must follow Korean inheritance tax laws, so it is important to compare the U.S. and Korean inheritance tax laws and take measures in advance before deciding to receive a certificate of residence and live in Korea.\u201d He added, \u201cIf you do not do so, you may have to pay a huge amount of taxes to the Korean National Tax Service in relation to inheritance if you die.\u201d<\/p>\n
In Korea, generally, if you have an address in Korea for more than 183 days, you are considered a resident and are subject to Korean tax laws. If the deceased is a resident when an inheritance is opened, all inheritance items owned by the deceased in Korea and abroad are subject to taxation.<\/p>\n
Attorney Eric Kim, who specializes in inheritance plans, said, \u201cIn the U.S., the inheritance tax exemption limit is $13.61 million per person, so a couple does not have to pay inheritance tax on about $26 million.\u201d He added, \u201cGiven the large difference in inheritance tax rates between Korea and the U.S., one way would be to make gifts to your children in advance, but various problems can arise during the inheritance process, and everything can vary depending on the case, so I recommend consulting with an expert in detail.\u201d<\/p>\n","protected":false},"excerpt":{"rendered":"