South KoreaWhat is a will-substitute trust?
A will-substitute trust is not recognized under South Korean law; trusts in Korea are governed by the Trust Act and must be established during the settlor’s lifetime — they cannot function as testamentary instruments like wills.
What the Law Says
South Korean law does not permit trusts to take effect upon death as substitutes for wills. All trusts must be established while the settlor is alive and meet formal requirements under the Trust Act.
Under South Korean law, a trust is defined as a legal arrangement where a settlor transfers property to a trustee to manage or dispose of it for the benefit of a beneficiary (Trust Act, Article 3).
The Trust Act requires that a trust be established by a written agreement between the settlor and trustee (Trust Act, Article 9). Oral or implied trusts are invalid.
Crucially, the Trust Act does not authorize 'testamentary trusts' — i.e., trusts that arise only upon the settlor’s death. Unlike some common law jurisdictions, South Korea does not allow trusts to be created by will or to operate as will-substitutes.
Any disposition of property intended to take effect after death must comply with the Civil Act’s rules on wills (Civil Act, Chapter IV, Articles 1060–1102), not the Trust Act.
Statutory TextA trust is a legal relationship whereby the settlor transfers property to a trustee who manages or disposes of such property for the benefit of a beneficiary.
— Trust Act, Art. 3 — Definition of Trust
Statutory TextA trust shall be established by a written agreement between the settlor and the trustee.
— Trust Act, Art. 9 — Method of Establishment
What to Do
Use a valid will under the Civil Act (Articles 1060–1102) to distribute assets after death.
If using a trust, establish it during your lifetime via written agreement with a trustee.
Ensure trust property is legally transferred to the trustee before death — no posthumous creation is permitted.
Consult a Korean-licensed attorney to align estate plans with both the Trust Act and Civil Act requirements.
Sources
Not legal advice. This article is general information based on publicly available sources, written for educational purposes. Laws change and individual situations vary. Consult a licensed attorney in your jurisdiction before acting on anything you read here. Last reviewed: 2026-06-08.