Is estate planning through a trust possible?

What the Law Says

South Korean law explicitly permits estate planning through trusts under the Trust Act, which provides the legal framework for establishing, managing, and terminating trusts for personal and familial asset succession.

The Trust Act (Act No. 16547, effective April 1, 2019) governs all trust arrangements in South Korea, including those used for estate planning. A trust is defined as a legal arrangement where a settlor transfers property to a trustee, who manages or disposes of it for the benefit of beneficiaries or a specific purpose.

For estate planning, trusts must satisfy statutory validity requirements: the trust purpose must be lawful and definite, the trust property must be clearly identifiable, and the beneficiaries (or purpose) must be ascertainable. The trust must also comply with formal requirements — notably, trusts involving real estate or lasting longer than one year must be established in writing and notarized.

While trusts can be used to manage assets during life and distribute them after death, South Korean law imposes limits: trusts cannot last longer than 10 years unless established for charitable, educational, or other public-interest purposes (which may be perpetual). Also, testamentary trusts (created by will) are permitted but require probate court approval to take effect.

Statutory Text

A trust shall be valid only when its purpose is lawful and definite.

— Trust Act, Art. 3 — Validity of Trust

Statutory Text

A trust for private benefit shall terminate upon the expiration of ten years from the time of its establishment, unless otherwise provided by law.

— Trust Act, Art. 13 — Duration of Trust

Statutory Text

A trust contract shall be made in writing; if it involves real property or has a duration exceeding one year, it shall be notarized.

— Trust Act, Art. 15 — Formal Requirements

What to Do

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