Whether a title trust real estate not registered as a trust property can be deemed to have been donated to a trustee (negative)

The so-called title trust that only the title of ownership is transferred is not a trust under the Trust Act, and even if the fact of trust is not registered, it cannot be deemed to have been donated to the trustee under Article 32-2 of the Inheritance Tax Act.

Articles 1(2) and 3 of the Trust Act, Article 32-2 of the Inheritance Tax Act

Supreme Court Decision 78Nu396 delivered on January 16, 1979, Supreme Court Decision 80Nu258 Delivered on September 30, 1980

[Judgment of the court below]

The Director of Gangnam District Office

Seoul High Court Decision 81Gu239 delivered on December 2, 1981

The appeal is dismissed. The costs of appeal are assessed against the defendant.

The grounds of appeal Nos. 1, 2, and 3 are examined together.

In a case where a trust property as provided in Article 32-2 of the Inheritance Tax Act is deemed to have been donated to a trustee on the date when the trust property is registered or recorded pursuant to Article 3 of the Trust Act in a case where the trust property is deemed to have been donated to the trustee, and the trust property registered under the name of the trustee shall be deemed to have been donated to the trustee on the date when the relevant registration is made. Thus, the so-called title trust only transferred in the name of the ownership shall not be deemed to be a trust under the Trust Act as provided in Article 1 (2) of the Trust Act, and even if it is not registered pursuant to Article 3 of the Trust Act, it shall not be deemed to have been donated by Article 32-2 of the above Inheritance Tax Act. Accordingly, the court below's revocation of the disposition of imposition, such as the gift tax of this case, is just, and the court below rejected the defendant's assertion that there is no evidence to prove that the real property of this case was donated from the non-party, and there is no ground for appeal in full.

Therefore, the appeal is dismissed, and the costs of appeal are assessed against the losing party. It is so decided as per Disposition by the assent of all participating Justices.

Justices Lee Il-young (Presiding Justice)