I heard that the inheritance tax rate is up to 50%. If there is a lot of property, do you have to pay 50% on all of it?

The inheritance tax rate is not a structure in which 50% is applied uniformly to the entire estate; rather, it is a five-tier progressive rate system applied differently by tax base bracket.

The inheritance tax rate according to the tax base is composed as follows: 10% for 100 million won or less; 20% for the portion over 100 million won and up to 500 million won (progressive deduction of 10 million won); 30% for the portion over 500 million won and up to 1 billion won (progressive deduction of 60 million won); 40% for the portion over 1 billion won and up to 3 billion won (progressive deduction of 160 million won); and 50% for the portion over 3 billion won (progressive deduction of 460 million won).

The calculated tax amount is computed using the method 'tax base × applicable rate - progressive deduction.'

Therefore, the top rate of 50% applies only to the portion of the tax base exceeding 3 billion won, and the actual tax burden varies depending on the tax base after reflecting the deduction items.

Detailed matters related to the inheritance tax rate can vary depending on the composition of the individual estate, whether deductions apply, and the record of prior gifts, so it is necessary to make a determination after a detailed review based on the specific facts.

It is advisable to obtain a comprehensive review, through the advice of an attorney specializing in inheritance, covering prior gift strategy, examination of deduction items, and the design of the filing structure.