Trust manager system ensures funds used as donor intended

Account can also invest in ELBs, ETFs and other assets

[Hana Bank]
[Hana Bank]

Hana Bank on Tuesday launched a new trust product, "Naemamdareo Trust — Family Love Edition," designed to help customers transfer assets to their grandchildren and children in a planned, structured way.

The product's defining feature is its ability to control how gifted assets are used. Donors — typically grandparents — can be designated as trust managers, and no withdrawals or cancellations are permitted without their approval. The structure ensures funds are used only for purposes the donor intended, such as university tuition or marriage expenses.

The product also offers potential tax benefits. By making advance gifts within the 10-year gift tax deduction limit and placing the funds in the trust, investment returns generated from deposits, equity-linked bonds, ETFs and other assets are not subject to gift tax. Hana Bank said the product allows customers to pursue both asset growth and tax savings at the same time. The bank also offers a "message of love" feature, through which a donor can write a personal note in advance to be delivered to the beneficiary when the trust is dissolved.

"The number of senior customers seeking medium- to long-term asset management for their grandchildren and children — covering tuition and marriage funds — is growing," the bank said, adding that it would continue to introduce differentiated trust services.

Meanwhile, as South Korea's population ages, demand for lifetime gifting as a means of asset succession has risen, prompting banks to roll out a growing range of customized inheritance and gift trust products. Hana Bank had previously rebranded its existing will-substitute trust product, "100-Year Trust," under the broader "Naemamdareo Trust" brand to make it accessible to customers of all ages.


forest@heraldcorp.com