When You Live Abroad and Need to Settle an Inheritance in Korea

First, get information on the heirs and the state of the estate from family in Korea, and work out what you will need to sign. In many countries, booking an appointment with the authenticating authority takes time.

• Write down the date your parent died and the day you heard the news
• Check whether you still hold Korean nationality, and find your passport and any record of loss of Korean nationality
• Check the authentication services and how to book an appointment at the nearest Korean embassy or consulate
• Decide which family member or representative will submit documents on your behalf in Korea

Renunciation (상속포기) and limited acceptance (한정승인) must be filed within 3 months from the day you learned that the inheritance began, and living abroad does not extend this period. If your documents may be delayed, you can ask the family court to extend the period before the 3 months run out. If you became an heir later because heirs ahead of you renounced, the 3 months run from the day you learned of that.

For acquisition tax and inheritance tax, if an heir has an address abroad, the filing deadline is extended to 9 months from the last day of the month in which the inheritance began (Local Tax Act (지방세법) Article 20; Inheritance Tax and Gift Tax Act (상속세 및 증여세법) Article 67). Tax filings are handled on a schedule coordinated with a tax accountant who cooperates with Jisan Law.

Korean nationals living abroad usually have their signature on the division agreement or power of attorney authenticated at a Korean embassy or consulate in their country of residence, in place of a certificate of seal impression (인감증명서). Choose either to sign the agreement yourself or to give a family member in Korea the authority to negotiate, and the power of attorney must state the property and powers specifically. Courts, registry offices and banks each require different forms and content, and trying to use one document for everything often means getting authenticated again, so first make a list of where documents will be submitted and then have them all authenticated at once.

Foreign nationals need notarization by a local notary plus an apostille (in member countries of the Apostille Convention) or consular confirmation (in non-member countries), and a Korean translation. Also prepare a record of loss of Korean nationality or other proof that the name in the Korean family relationship register and the name in your foreign passport belong to the same person.

A foreigner who acquires Korean real estate by inheritance must report it to the competent authority within 6 months from the date of acquisition (Act on Report on Real Estate Transactions (부동산 거래신고 등에 관한 법률) Article 8(2)). To register it, you may also need to obtain a separate real estate registration number.

If you receive real estate, sell it and want to send the money abroad, you will need the bank's overseas remittance procedure and tax settlement documents. Compare from the start whether to take the real estate or to let another heir take it and receive a settlement payment.

• Signing a blank power of attorney without seeing what has been agreed
• Waiting in the belief that unauthenticated scans or photos will be accepted as documents
• Only looking into the procedure when the 3 months are almost over

Jisan Law sets out the authentication method and document list each heir needs, and, acting under a power of attorney, handles renunciation or limited acceptance filings, the division agreement, and mediation or adjudication on division in Korea. Despite the time difference, you can send us a message through the chat on this page at any time.