When Your Parents Want to Give One Child a House in Advance

A gift is not only a tax matter. The key is to think through in advance what the other children could later dispute, and to have the documents in place.

• What share of the parents' total property the gift represents
• Whether enough property will remain for the other children and the spouse to cover their forced heirship shares
• Whether there are records showing the reason for the gift (care, contribution to a business, living support and so on)
• How the parents' living costs and housing will be handled after the gift

A gift to a child is counted after the death as a share received in advance (special benefit, 특별수익) in the division of the estate, and if another child's forced heirship share (유류분) falls short, it becomes subject to a claim for return. The forced heirship share is one half of the statutory share for children and spouses and one third for parents; siblings have none. Registry records and account records remain, so even hidden gifts often come to light later during a lawsuit through fact-finding inquiries or orders to submit financial transaction information.

For inheritances that began on or after March 17, 2026, the forced heirship share must, as a rule, be returned in money (Civil Act (민법) Article 1115). This means the child who received the house may keep it but have to raise cash, so this burden should be considered at the gift stage.

Telling the other children about the gift and the reasons in advance, and keeping a record of the views expressed, reduces emotional disputes later about something being received behind their backs.

However, under case law, a written statement by another child waiving their forced heirship share before the inheritance begins has no effect. Rather than expecting such a statement to prevent disputes, it actually helps more to set out what property remains and the reasons for the gift.

Under the amendment of March 17, 2026, a gift made as compensation for specially supporting the parent, for example by living with and nursing them for a considerable period, or for specially contributing to increasing their property, is not treated as a special benefit to that extent (Civil Act Article 1008, proviso). This rule also applies to the forced heirship share.

For this to apply, it must be clear what the gift compensates. Writing the period and nature of the support in the gift contract, and keeping care records or records of hospital costs paid, provides a basis if other children dispute it later.

A filial support contract (효도계약, a gift with a burden) that attaches conditions such as living with the parent or paying hospital bills provides grounds to cancel the gift and get it back if the child does not keep the conditions. Write it so compliance can be judged, for example the number of calls and visits or the amount of living money, and having it notarized reduces disputes over how it was made.

If the parent is in the early stages of dementia, their mental capacity at the time of the gift may be disputed later, so obtaining a medical certificate just before the gift helps. Another difference is that using a will or a will substitute trust instead of a gift lets the parent keep managing the property while they are alive.

Jisan Law calculates in advance, from the family structure and size of the property, the forced heirship shares and special benefits that will remain after the gift, and prepares the wording of a filial support contract and the supporting records for a gift in return for contribution. Taxes are reviewed together with a tax accountant who cooperates with Jisan Law.