Estate Planning When You Have Assets in Both America and Korea

If you're Korean-American and you own property or have assets in both the United States and Korea, your estate plan just got a lot more complicated. And if you don't plan for it, your family is going to deal with two different legal systems, in two different countries, with two completely different sets of rules — after you're gone.

I see this more often than you'd think. A couple owns a home in California and a small apartment in Seoul that they inherited from a parent. Or they have a bank account at Shinhan or Woori that they've maintained for decades. Maybe there's a pension from a Korean employer. Sometimes it's a piece of rural land in the countryside that's been in the family for generations.

The problem is that most estate planning attorneys in America will prepare your trust or will based on your American assets and either ignore the Korean assets entirely or give you a vague disclaimer that says "consult a Korean attorney." That's technically correct advice, but it's not very helpful when you're sitting there trying to figure out how to protect everything you've built across two countries.

So let me walk you through what I've learned working with Korean-American families on both sides of this issue.

Two Countries, Two Legal Systems

The first thing to understand is that your California living trust only governs assets located in the United States. It has no legal effect in Korea. A Korean court will not look at your California trust and say "oh, this is what they wanted, let's follow it." Korea has its own succession laws, and they will apply to your Korean assets regardless of what your American estate plan says.

This means if you own real estate in Korea, that property will be subject to Korean inheritance law when you pass away. If you have bank accounts in Korea, those accounts are governed by Korean banking and succession regulations.

What does this mean practically? It means you probably need two estate plans — one for each country.

Korean Inheritance Law is Very Different

Here's where it gets interesting, and where a lot of Korean-American families are surprised. Korea has a system called 유류분 (yulyubun) — a "legally reserved portion" that guarantees certain family members a minimum share of your estate. In Korea, you cannot completely disinherit your children or your spouse. The law reserves a portion of the estate for them no matter what you write in your will.

California has no such rule. In California, you can leave everything to one child, to a friend, to a charity — to anyone. The only protection is for a surviving spouse's community property interest, and even that can be planned around with proper documentation.

So here's the scenario I see play out: a Korean-American couple writes a trust in California that leaves everything equally to their three children. Seems fair. But in Korea, the inheritance law might allocate differently based on the legally reserved portions. The result? Your American assets get distributed one way and your Korean assets get distributed another way — and your family ends up confused and sometimes in conflict.

The Practical Approach

So what should you actually do? Based on my experience working with Korean-American families, here's what I recommend:

Start with your American estate plan. If you live in California, your primary estate plan should be a California living trust. This covers your California home, your American bank accounts, your retirement accounts, your investments — everything in the US. This is the plan that keeps your family out of California probate, which as I've written about before, can cost tens of thousands of dollars and take over a year.

Get a Korean attorney for your Korean assets. This is not optional. You need a Korean attorney who specializes in inheritance (상속법) to prepare a Korean will or handle the succession planning for your Korean assets. Ideally, this should be someone who understands that you also have an American estate plan and can coordinate with it.

Make sure the two plans don't contradict each other. This is the critical part that most people miss. If your California trust says "everything goes equally to my three children" but your Korean will says something different, there could be problems. The two plans should work together, not against each other.

Understand the tax implications in both countries. This is where you really need professional help — and I'm talking about a CPA or tax advisor, not just an attorney. As a US citizen or permanent resident, you're required to report worldwide income to the IRS, including income from Korean assets. Korea also has its own inheritance tax, and it's steep — rates can go as high as 50% on large estates. There may be a tax treaty between the US and Korea that prevents double taxation, but navigating this requires a professional who understands both systems.

Don't forget about Korean bank accounts and financial reporting. If you have financial accounts in Korea with an aggregate value over $10,000 at any point during the year, you're required to file an FBAR (Foreign Bank Account Report) with the US Treasury. Failure to file can result in severe penalties. Additionally, if your Korean financial assets exceed certain thresholds, you may need to file Form 8938 with your tax return. These are tax and reporting issues, not estate planning issues per se, but they're part of the bigger picture and I always bring them up with my clients so they're aware.

What About the Deed to Korean Property?

One question I get often is: "Can you transfer my Korean property into my American trust?"

The short answer is no. Korean real property must be handled under Korean law by a Korean attorney. The deed (등기부등본) is registered with the Korean government and can only be transferred according to Korean legal procedures.

What I can do is make sure your California trust is properly structured so that your American assets — including your California home — are protected and will avoid probate. For the Korean property, you'll work with a Korean attorney to ensure proper succession, whether that's through a Korean will, a gift during your lifetime, or other planning methods available under Korean law.

A Common Scenario

Let me give you a real-world example that illustrates why this matters.

Mr. and Mrs. Park live in Irvine, California. They own a home worth about $1.2 million, have retirement accounts, and some savings at Bank of Hope. They also own a small apartment in Busan that Mrs. Park inherited from her mother, worth about 300 million won (roughly $225,000). Mr. Park also has an old savings account at Shinhan Bank with about 50 million won.

If the Parks only create a California living trust and do nothing about the Korean assets, here's what happens when they both pass away:

Their California home and American assets pass through the trust smoothly — no probate, no court involvement, exactly as planned. But the Busan apartment and the Shinhan account? Those go through the Korean succession process. The children will need to work with a Korean attorney, obtain Korean documentation, potentially appear at a Korean court, and deal with Korean inheritance tax. If the children don't speak Korean well, or if they've never dealt with the Korean legal system, this becomes a major headache.

If the Parks had planned for both, they could have had a Korean attorney prepare a Korean will that coordinates with the California trust. The children would still need a Korean attorney to administer the Korean assets, but the process would be far smoother because the parents' wishes would be clearly documented under Korean law.

What I Can Do and What I Can't

I want to be upfront about this. I'm a California estate planning attorney. I can prepare your California living trust, your will, your powers of attorney, and your health care directives. I can make sure your California home and American assets are properly protected and will avoid probate.

What I can't do is practice Korean law. I can't prepare a Korean will or handle Korean property transfers. But what I can do — and what I think is really valuable — is have this conversation with you in Korean, help you understand how the two systems interact, and make sure your American estate plan accounts for the existence of your Korean assets. I can also help connect you with reputable Korean attorneys who specialize in cross-border succession planning.

The worst thing you can do is nothing. And the second worst thing is to plan for only one country and ignore the other.

Getting Started

If you have assets in both countries, the best first step is to get your American estate plan in order. That's the foundation. A California living trust protects your home, your bank accounts, your investments — everything on this side of the Pacific.

From there, we can discuss your Korean assets during the review call and I can help you understand what questions to ask a Korean attorney. The goal is a coordinated plan that covers both countries, protects your family from unnecessary cost and confusion, and makes sure your wishes are followed — whether the asset is in Sacramento or Seoul.