I am curious about the differences between inheritance tax and gift tax.

Inheritance tax and gift tax vary depending on the situation and manner in which property is inherited.

Simply put, if you receive property from a living person, you must pay gift tax, and if you receive it from a deceased person, you must pay inheritance tax.

In other words, for inheritance tax and gift tax, the criterion is whether the person passing on the property is alive.

There is also a difference in the manner of taxation.

For example, if property worth 1 billion won is divided among 10 children, the inheritance tax is calculated on the basis of the entire inherited property of 1 billion won, and the heirs then bear it in divided portions.

The deduction items also apply differently for inheritance tax and gift tax.

For inheritance tax, up to a basic 500 million won is deducted, and if there is a spouse, an additional 500 million won is deducted.

In contrast, for gift tax, only up to 50 million won can be deducted over 10 years, and even when a spouse receives a gift, only up to 500 million won is deducted on a 10-year basis.

Ultimately, because the tax burden for inheritance tax and gift tax varies depending on the timing and manner of receiving property and whether deductions apply, it is important to receive expert consultation from the planning stage.