1. The Client's Crisis

At the time the decedent (the deceased) died in 2025, the bank deposit balance in the decedent's name was almost gone. The defendant, the eldest son, strongly denied having received any gifted assets despite having managed the decedent's property for over 20 years. The client suspected that the defendant had liquidated and hidden the decedent's assets while the decedent was alive, but because cash assets leave the flow of funds concealed, it was difficult to prove that the reserved portion had been infringed.

2. Key Issues

The complex issues to be contested in this case were broadly divided into three points. First, the key issue was how to prove the defendant's special benefit when there was almost no active property left in the decedent's name. Although there were indications that the defendant had dispersed funds using nominee accounts and grandchildren, this had to be supported by objective evidence. Second, the issue was whether gifts to grandchildren could be included as special benefit to co-heirs. As a rule, gifts to third parties who are not co-heirs are included in the reserve base only if made within one year before the opening of the inheritance; however, if they are recognized as being no different in substance from a direct gift to an heir, they are recognized as special benefit without any time limit. Third, because the defendant's side was highly likely to counterclaim the client's special benefit and attempt setoff, a preemptive defense against that was necessary.

3. Existence's Strategy

Attorney Yoon Ji-sang and Attorney Noh Jong-eon, as managing partners, established a strategy to uncover the hidden assets by meticulously tracing 10 years of financial transaction flows.

First, they proved subrogated repayment of loan funds. After confirming that tens of millions of won had been withdrawn from the decedent's bank account and that the loan in the decedent's name had been fully repaid, they traced back the past interest payment history of the loan account. As a result, they discovered that from 2010 to 2020 the interest on that loan had been paid monthly from the defendant's account, proving that although the loan was in the decedent's name, the actual borrower was the defendant.

Second, they traced indirect gifts of about KRW 300 million using the grandchildren. Immediately after the decedent sold an apartment in Jamsil in 2021, they found records showing that a total of about KRW 300 million had been transferred from the decedent's account to the defendant's children (the grandson and granddaughter). At the time, the grandchildren were just starting their careers and had no reasonable basis to receive such a large gift, and by detecting signs that the funds flowed back to the defendant's wife or mother, they legally framed this as an "indirect gift to the defendant."

Third, they uncovered KRW 150 million in funds diverted through a nominee. Immediately after the intermediate payment from a real estate sale was deposited, they confirmed that KRW 150 million had been transferred to a third party unrelated to the heirs, and found that the person was likely the holder of a nominee account who had engaged in long-term monetary transactions with the defendant's side.

In addition, thousands of financial transaction records were turned into a database to visually map the flow of funds, and the correlation between the timing of the real estate sale and the timing of fund transfers was matched down to the minute and submitted. Attorney Noh Jong-eon, drawing on his capabilities in reading financial structures and transaction records from his background as the head of a legal team at a major financial conglomerate, led the evidence analysis.

The complaint also expressly stated that the defendant's act of dispersing funds using grandchildren and nominees could raise issues of gift tax evasion and violations of the Punishment of Tax Offenses Act, strongly implying that if the litigation continued, the entire defendant family could become the subject of a tax audit.

Meanwhile, in preparation for the defendant's likely counterargument regarding the client's special benefit, the client preemptively organized and submitted records showing that from 2008 to 2021, for 13 years, the client had paid the decedent's loan interest and covered living expenses, thereby explaining that the funds the client had received were in the nature of a settlement for long-term support and contribution, and preemptively blocking any setoff argument.

4. Result and Recovery

Although the defendant's side attempted to respond by retaining a large network firm, they acknowledged that any further dispute would be futile in the face of the financial evidence and tax risks presented by Law Firm Jonjae. Just 24 days after the complaint was filed, the defendant accepted the client's requested terms and paid the settlement amount, and the client withdrew the lawsuit, bringing the case to a close. In a reserved portion lawsuit, which usually takes more than a year, this was an unprecedentedly swift result, and the client was able to fully recover the rightful reserved portion.

Lead Attorneys: Yoon Ji-sang, Managing Partner Attorney · Noh Jong-eon, Managing Partner Attorney

For confidentiality protection, this case has been partially de-identified within a scope that does not undermine the essence of the matter.