1. Introduction to the text
This article discusses the recent trend of older adults in their 60s and 70s secretly creating trust agreements to pass on their assets to their grandchildren, bypassing their own children. It explores the growing popularity of “will substitute trusts” as a way for the elderly to ensure their wealth is inherited by their preferred beneficiaries.
2. Vocabulary
| Korean Word | Romanization | English Meaning | Contextual Example |
|---|---|---|---|
| 며느리 | myeoneolli | daughter-in-law | They want to give money to their grandchildren, excluding their daughter-in-law. |
| 손주 | sonju | grandchild | The older adults want to give money to their grandchildren instead of their children. |
| 계약서 | gyeyakseeo | contract | Older adults are secretly creating contract agreements to pass on their assets. |
| 유언대용신탁 | uyeon daeyong sintag | will substitute trust | The use of “will substitute trusts” has increased significantly in recent years. |
| 기대수명 | gidaesumeong | life expectancy | While life expectancy has increased, healthy life expectancy remains lower. |
| 건강수명 | geongang sumeong | healthy life expectancy | Healthy life expectancy is only 66 years, despite the overall increase in life expectancy. |
| 유증 | yujung | bequest | Assets can be passed down through successive bequests using a will substitute trust. |
| 수익자 | suyigja | beneficiary | The trust allows for designating third parties or organizations as the beneficiaries. |
| 유언장 | uyeonjang | will | Wills are inconvenient to update, whereas will substitute trusts are more flexible. |
| 더중플 | deojoongpeul | The JoongAng Plus | The JoongAng Plus article provided a comprehensive overview of will substitute trusts. |
3. The main text in both Korean and English
요즘 60, 70대 어르신들이 자신의 자산을 손자녀에게 물려주기 위해 며느리를 제외한 채 몰래 계약서를 작성하는 경우가 늘고 있다.
Older adults in their 60s and 70s are increasingly creating secret contract agreements to pass on their assets to their grandchildren, excluding their own children (daughters-in-law).
이른바 ‘유언대용신탁’이라는 금융 상품을 활용해 자신이 사망하면 자산이 손자녀에게 이전되도록 하는 것이다.
They are using a financial product called a “will substitute trust” to ensure that their assets are transferred to their grandchildren upon their death.
기대수명은 늘었지만 건강하게 오래 살기는 더 힘들어졌다. 2022년 출생아의 기대수명은 83세지만 유병 기간을 제외한 건강수명은 66세에 불과하다.
Life expectancy has increased, but it has become more difficult to live a long and healthy life. While the life expectancy for babies born in 2022 is 83 years, the healthy life expectancy, excluding periods of illness, is only 66 years.
이에 따라 자신의 자산을 자녀가 아닌 손자녀에게 물려주려는 어르신들이 늘고 있다. 자녀에게 물려주면 며느리가 자산을 가져갈 수 있기 때문이다.
As a result, more elderly people are trying to pass on their assets to their grandchildren instead of their children. They are concerned that if they leave their assets to their children, their daughters-in-law may end up inheriting the wealth.
유언대용신탁은 ‘사망 시 B에게, B가 사망 시 C에게 준다’는 식으로 자산을 대물림(연속 유증)할 수 있다. 제3자나 사회단체를 수익자로 정할 수도 있다.
Will substitute trusts allow for the successive transfer of assets, such as “upon A’s death, the assets go to B, and upon B’s death, they go to C.” They also allow for designating third parties or organizations as the beneficiaries.
유언장은 내용을 바꾸려면 새로 써야 하는데 유언대용신탁은 그런 불편함이 없다.
Wills are inconvenient to update, as the entire document needs to be rewritten if changes are desired. Will substitute trusts, on the other hand, are more flexible in this regard.
4. Reading comprehension questions
- Why are older adults in their 60s and 70s creating secret contract agreements to pass on their assets to their grandchildren?
- What is a “will substitute trust” and how does it differ from a traditional will?
- What is the current trend in life expectancy and healthy life expectancy in South Korea?
- Why are older adults concerned about leaving their assets to their children instead of their grandchildren?
- What are the key benefits of using a will substitute trust compared to a traditional will?
5. Cultural and historical notes
The practice of older adults bypassing their children to directly transfer wealth to their grandchildren reflects a cultural shift in South Korea. Traditionally, the eldest son and his family were expected to inherit the majority of a family’s assets. However, the growing trend of “will substitute trusts” suggests that some older adults are now prioritizing their grandchildren’s well-being over the traditional family inheritance structure.