gettyimagesbank

Commercial lenders are rushing to fortify their respective inheritance trust businesses, propelled by demand from grandparents seeking to augment financial investment returns from their assets before transferring them without legal disputes after death, according to industry sources Sunday.Banks expect explosive growth of the market, as indicated by household wealth controlled by people aged 60 and older rising to 37.7 percent in 2022, up from 32.2 percent in 2017. Property accounted for 78 percent of the assets of the age group. Trust-mediated inheritable property is limited to 3.5 percent of the total.Further advancing business prospects is the deregulation of the inheritance trust market under the broader mandate to revise inheritance procedures.

According to market sources, Korea’s top five banks, KB Kookmin, Shinhan, Hana, Woori and NH NongHyup, had a combined 3.3 trillion won ($2.4 billion) in inheritance trust under management in the first quarter, up about 1 trillion won or 43 percent from a year prior.Banks generate profit from operating trusts composed of an investment portfolio of cash, securities and real estate.The customers receive returns from the trust, and the assets can be inherited from their families according to the agreed-upon terms.Hana Bank launched an inheritance management service last month, a one-stop service encompassing post-retirement asset management and inheritance.“We will continue to expand consulting services to include every aspect of the inheritance process,” a Hana official said.“We will continue efforts to broaden the circle of customers and scope of services, as underpinned by 온라인카지노 cooperation with non-financial entities to bolster preparation for regulatory framework and digitization.”

Leave a Reply

Your email address will not be published. Required fields are marked *