"Why Does Only Oppa Inherit the Property?" vs "I Was the Only One Who Took Care of Our Parents"
Apartment prices in the Seoul metropolitan area have risen to their highest level in nine years. According to the Korea Real Estate Board, apartment prices in the metropolitan area increased by 0.36% in the third week of July (as of the 19th), marking the highest weekly increase in 9 years and 2 months since the board began compiling weekly statistics in May 2012. The photo shows an apartment complex in Dongan-gu, Anyang-si. Due to the soaring apartment prices and punitive taxation targeting multi-homeowners, apartment gifts have surged in recent years, and disputes over inherited property have increased accordingly.
◆ "Why did only my older brother inherit the Gangnam apartment?" Inheritance disputes fueled by skyrocketing housing prices
Many lawsuits arise from heirs claiming they did not receive their rightful share during the inheritance process. The case of Mr. A is a typical example.
Mr. A received an apartment worth 1 billion KRW from his father as a gift five years before his father passed away. Recently, while settling the father's estate, his younger sister Ms. B discovered this fact belatedly and filed a lawsuit demanding Mr. A return her rightful share of the inheritance.
'Yuryubun (遺留分)' refers to the legally guaranteed portion of an inheritance that must be allocated to certain heirs such as direct descendants (children, grandchildren), spouses, direct ascendants (parents, grandparents), and siblings. Under current civil law, spouses and children are entitled to a certain portion of the parent's estate as yuryubun. The legally defined inheritance shares are in a 1.5 to 1 ratio between spouses and children, and among children, the shares are equal regardless of birth order or gender.
In cases like this, even if a parent leaves all their assets to one child, the other child who did not receive any inheritance can file a lawsuit to reclaim half of their legal share. In other words, Ms. B can inherit half of the apartment's share, and since yuryubun can be exercised for half of the statutory inheritance share, she can claim 250 million KRW, which is one-quarter of the apartment's value.
◆ "I lived a hard life caring for my parents alone..." When equal distribution feels unfair
Conversely, disputes can also arise when inheritance is distributed equally among all siblings.
For example, if one sibling cared for the parents alone under difficult circumstances, but the parents divided their estate equally among all siblings, this can lead to conflict. In such cases, the contribution portion system can be used to recognize the efforts made in supporting the parents.
The contribution portion system allows for an increase in the inheritance share of an heir who has specially supported the deceased heir through cohabitation, nursing, or other means for a significant period, or who has contributed to maintaining or increasing the deceased's property.
The increase rate of apartment jeonse prices in Seoul recorded the highest level in a year. According to the Korea Real Estate Board on the 29th, the apartment jeonse prices in Seoul rose by 0.16% in the fourth week of July (as of the 26th). This is the highest increase rate since the first week of August last year (0.17%), right after the new lease law was implemented. The photo shows the view of downtown apartments from Namsan, Seoul, in the afternoon of the 29th.
◆ "I'm afraid my children will fight over money after I die" How to prevent legal disputes
Because disputes over inheritance are common, some donors worry about legal conflicts among their children.
"I am a mother of two sons. My husband has already passed away, and I don't have much time left. I own two houses worth 100 million KRW each, and I want to leave more to my older son because he is struggling financially. But I am afraid my children will fight over the inheritance after I die. How can I divide the property without legal issues?"
Experts advise that donors should legally protect the rights of all children during their lifetime.
Attorney Eom Jeong-sook (Beopdo Comprehensive Law Office) said, "There are two methods: gifting only half of the owned property or gifting only up to the yuryubun amount." Regardless of the method, the key is to protect half of the inheritance share that the children are originally entitled to.
The inheritance amount guaranteed by yuryubun is half of the original inheritance amount. If there are two children and two houses worth 100 million KRW each, the total estate is 200 million KRW, so each child's original inheritance share is 100 million KRW. The yuryubun is half of that, so each child should be able to inherit at least 50 million KRW.
Attorney Eom said, "Most family lawsuits occur because the donor did not protect a specific child's yuryubun during lifetime gifting. If the estate is inherited within the limits that protect all children's yuryubun, family harmony can be maintained."
◆ Apartment gifts in Seoul tripled under the Moon Jae-in administration
Apartment gifts in Seoul have more than tripled during the Moon Jae-in administration. According to data received by Assemblyman Kim Sang-hoon (People Power Party) of the National Assembly Land, Infrastructure and Transport Committee from the Korea Real Estate Board, the proportion of apartment transactions in Seoul accounted for by gifts increased from 4.5% in 2017, the first year of the Moon administration, to 14.2% last year, more than tripling. During the previous administration from 2011 to 2016, the average gift proportion was around 4.5%.
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