Plans to Promote Private Trusts for 'Dementia Money' Utilization
Reforming Inconsistencies Between Guardianship and Trust Systems
Creating Pathways to Liquidate Real Estate Assets for Care Expenses
The government has decided to change the term "parental leave" to "parental engagement period" and "career-interrupted women" to "career-transition women." The aim is to reduce negative perceptions associated with marriage, childbirth, and parenting. In addition, the government will also pursue improvements to the trust system so that dormant assets of elderly dementia patients (so-called "dementia money") can be used for the patient's own care and treatment.
Joo Hyungwan, Vice Chairman of the Low Fertility and Aging Society Committee, attended the 7th Population Strategy Joint Forum held at the Press Center in Jung-gu, Seoul, on February 18, delivering a greeting. 2025.2.18 Photo by Jo Yongjun
The Low Fertility and Aging Society Committee (hereinafter referred to as the Committee) held the 13th Emergency Population Countermeasures Meeting on the 29th, where it discussed these reforms. The main agenda items included: the current status of policies addressing low birth rates; an evaluation of the implementation of 2024 policies; management measures for dementia money; and directions for reforming the old-age income security system.
Major Overhaul of Marriage and Childbirth Terminology Following Criticism Over Negative Perceptions
The government has determined that existing terms such as "parental leave," "career-interrupted women," and "infertility treatment leave" may actually reinforce negative perceptions or biases, and has decided to improve them. For example, "parental leave" may be changed to "parental engagement period" or "childcare period," and "career-interrupted women" to "career-transition women." It was pointed out that "parental leave" carries a negative nuance of "taking a break," which discourages use of the system, while the word "interrupted" can foster negative views on women's careers. In addition, "infertility treatment leave" may feel like a personal deficiency or failure, so changing it to "pregnancy preparation period" or "hopeful childbirth leave" is under consideration. In everyday language, alternatives have been suggested such as using "siga" or "spouse's family home" instead of "sidek" (husband's family), and "infant carriage" instead of "stroller."
The government plans to gather public opinion on these proposed terminology changes through an online survey in June, and based on the results, submit related legislative amendments to the regular National Assembly session in September. Recognizing that immediate revision of some terms may be difficult, the government intends to implement alternative terms or change institutional names in stages.
Systematic Management of 'Dementia Money' Assets Before and After Onset
The government will also pursue improvements to the trust system, including measures to liquidate assets through real estate trusts, so that "dementia money" (assets of elderly dementia patients) can actually be used for the patient's own treatment and care expenses. For example, the scope of trust assets will be expanded to allow real estate with mortgage loans to be placed in trust, and support will be provided for the liquidation of real estate to pay medical expenses. The government will also resolve legal uncertainties between the guardianship and trust systems to strengthen their interconnection.
Currently, the Trust Act only allows trust contracts to be concluded when the individual has decision-making capacity. However, because the authority of guardians to protect or represent the assets of dementia patients is not clearly defined under the Trust Act, it has been pointed out that it is difficult to execute trusts in practice after the onset of dementia, even if a trust exists.
The government also plans to expand the number of professional guardians and include not only low-income individuals but also the general public as eligible for the public guardianship program for dementia. The infrastructure for guardian education and the management and supervision system will also be strengthened. For vulnerable groups who have difficulty using private trusts, the government is considering directly providing trust services. In addition, the government will expand and analyze statistics related to dementia money by region and income bracket, and publish them regularly every year.
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