I am curious about the differences between inheritance tax and gift tax.

Inheritance tax and gift tax differ depending on the situation and method of inheriting property.

Simply put, if you receive property from a living person, you must pay gift tax, and if you receive it from a deceased person, you must pay inheritance tax.

That is, inheritance tax and gift tax are based on whether the person passing on the property is alive.

There are also differences in taxation methods.

For example, if 1 billion won of property is divided among 10 children, the inheritance tax is calculated based on the total inheritance property of 1 billion won, and then the heirs share the burden.

Deduction items also differ between inheritance tax and gift tax.

For inheritance tax, a basic deduction of up to 500 million won is granted, and if there is a spouse, an additional 500 million won is deducted.

On the other hand, gift tax allows a deduction of only up to 50 million won for 10 years, and even when a spouse receives a gift, only up to 500 million won is deductible based on 10 years.

In conclusion, since inheritance tax and gift tax differ in tax burden depending on the timing and method of receiving property, and whether deductions apply, it is important to consult an expert from the planning stage.