The market for will-substitute trusts is steadily growing with Korea’s rapidly aging population.
A will-substitute trust is a service where a grantor, who wants to pass on their assets to beneficiaries, entrusts their assets, such as deposits, real estate or bonds, to a financial institution. The financial institution will be responsible for executing the inheritance upon the grantor’s death. It is regarded as a more flexible inheritance measure compared to a will, which can potentially cause disputes among heirs or tax issues.
As the baby boomer generation approaches retirement, the wealth management industry sees significant opportunities in facilitating family 스포츠 trusts. This trend is attracting close attention not only from securities companies but also from the banking sector.
As of the end of the first quarter this year, the balance of will-substitute trusts at four major commercial banks in Korea — KB Kookmin, Shinhan, Hana and Woori — stood at 3.3 trillion won ($2.3 billion), an increase of over 43 percent, compared to the first quarter of last year.
Considering that the balance was only around 870 billion won at the end of 2020, the growth rate is impressive.