Estate and Gift Tax Act Article 5-1

In a trust deed where all or part of the beneficiaries of the trust benefit are not settlors, it shall be considered that the settlor has made a gift of the right to enjoy the trust benefit to such beneficiaries, and gift tax shall be levied in accordance with the provisions of this Act.If, during the continuance of the trust relationship, beneficiaries designated as settlors in the trust deed become non-settlors, the provisions of the preceding paragraph regarding gift tax shall apply upon such change.During the continuance of the trust relationship, if the settlor adds trust property resulting in an increase in the right of non-settlors to enjoy the trust benefit, gift tax shall be levied on the increased portion at the time of addition, in accordance with the provisions of the first paragraph.The taxpayer for the preceding three paragraphs shall be the settlor. However, if the settlor falls under any of the circumstances stipulated in the proviso of Paragraph 1, Article 7 of this Act, the trustee shall be the taxpayer.