If the use of cash withdrawn before death cannot be clarified... What is the calculation method for presumed inherited property for inheritance tax?

If a large amount of cash is withdrawn from a parent's bank account before their death, and the usage cannot be clearly proven, that amount may be considered part of the inherited property, which can increase the inheritance tax burden. This is because the National Tax Service classifies funds withdrawn before death with unclear purposes as 'presumed inherited property' for taxation.

From what amount of pre-death withdrawals do they become subject to National Tax Service investigation?

According to the content of a video from the YouTube channel 'Semujosa-neun Peonpeontaekseu | Guksecheong Josaguk Chulsin', the National Tax Service requires heirs to explain the purpose of funds if an amount exceeding a certain threshold is withdrawn based on the date of death. The specific criteria are if the total sum of cash, deposits, and securities is 200 million won or more within one year of the date of death, or 500 million won or more within two years. Proceeds from the sale of real estate or money newly borrowed before death are also subject to review under the same criteria.

However, not all withdrawals are subject to investigation. The video explains that if the actual usage, such as hospital bills or nursing home costs, can be proven with receipts, it will not be caught as inherited property. Therefore, it is important to organize the usage of funds withdrawn before death in advance through receipts and other means.

A point to note is that the monetary threshold for this regulation applies to each type of asset. For example, if 180 million won is withdrawn from a deposit, it does not meet the 200 million won threshold within one year, so this presumption rule does not apply. Furthermore, failing to meet the threshold amount does not mean one can avoid verification by the National Tax Service. If it is confirmed through other data to be a gift or inherited property, it may be taxed separately.

20% deduction of unexplained amounts... Caution regarding rising inheritance tax rate brackets

When an amount for which the usage cannot be clarified (unexplained amount) occurs, it is not all included in the inherited property. According to the video, the National Tax Service provides a certain deduction considering small living expenses or support costs. The deduction amount is determined as the lesser of '20% of the initial withdrawal amount' and '200 million won'.

For example, if 300 million won is withdrawn and the usage of 100 million won is explained, the unexplained amount becomes 200 million won. In this case, 60 million won, which is 20% of the initial withdrawal of 300 million won, is deducted, and finally, 140 million won is calculated as presumed inherited property. If 1 billion won is withdrawn and 500 million won is explained, 300 million won—the unexplained amount of 500 million won minus 20%, which is 200 million won (the limit)—is added to the inherited property.

In this way, if the unexplained amount is added to the inherited property, it does not simply stop at increasing the tax amount. Inheritance tax has a progressive tax structure where higher tax rates are applied as the tax base increases. Therefore, caution is required as the inheritance tax rate bracket may rise from 30–40% to 50% due to the unexplained amount. The video added that no separate penalty tax is attached to the unexplained amount.