
Legal Q&A
Q
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My parents hold various assets, such as real estate and deposits, and I have no sense of how much tax will be due once the inheritance process begins. I would like to prepare in advance, so I am wondering whether I can calculate the inheritance tax if I receive an inheritance and gift consultation. I would also like to know, after such a consultation, on what basis the calculation is actually carried out.
inheritance and gift consultation
Answer
Published:
Author : Kuk Il KIM
When an inheritance and gift consultation is conducted, an attorney handling inheritance matters provides advice not only on calculating the inheritance tax but also on the overall legal procedures related to inheritance.
Inheritance tax is not calculated by applying the tax rate directly to the total value of the estate; rather, it is calculated step by step in the order set by law.
Therefore, to determine the exact tax amount, it is necessary to understand the calculation structure and organize the relevant materials.
The calculation of inheritance tax proceeds through the following steps.
① Confirming the scope of the inherited estate
All of the decedent's property, including real estate, deposits, and stocks, is included and assessed.
② Calculating the taxable amount
Debts, public charges, and funeral expenses are deducted from the value of the property, and property gifted in advance is added.
③ Calculating the tax base
Inheritance deductions (such as the basic deduction and the spousal deduction) are applied to determine the tax base.
Inheritance tax is calculated according to the following structure.
Tax base = value of inherited estate + property gifted in advance + property presumed to be inherited - debts, funeral expenses, and the like - inheritance deductions
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④ Calculating the tax amount
The inheritance tax is calculated by applying the progressive tax rate to the tax base.
In this process, property gifted in advance or funds whose use is unclear may be included in the taxable amount and increase the tax, and the final tax can vary greatly depending on whether deduction items, such as the spousal deduction or the lump-sum deduction, are applied.
In an inheritance and gift consultation, these factors can be reflected to simulate the expected tax amount and to review whether tax savings are possible.
In particular, when the size of the estate is large or there have been prior gifts, a difference between the expected tax and the actual tax can arise, so a prior review is important.
Ultimately, calculating the inheritance tax through an inheritance and gift consultation is entirely possible, and depending on the structure of the estate and whether deductions apply, a direction for reducing the tax burden can also be designed together.
If necessary, it is advisable to confirm the exact tax amount and procedure in advance through a consultation with an attorney handling inheritance matters.

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Kuk Il KIM
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