(A) the special advantages of trust in the management and inheritance of family fortune.
1. Trust can completely isolate the risks in family wealth.
In the common law system, once a trust is established, the trustor will transfer the trust property to the trustee's name, but the trustee only enjoys the ownership of the trust property in the common law sense, and the beneficiary enjoys the equity ownership. Although China's trust law does not clearly stipulate the transfer of ownership, it recognizes the independence of entrusted property.
Article 15 of the Trust Law stipulates that trust property is different from other properties that the trustor has not established a trust. Article 16 stipulates that the trust property is different from the property owned by the trustee (hereinafter referred to as the inherent property) and shall not be included in or become a part of the inherent property of the trustee. After design, the trust property can also be independent of the beneficiary, and the trust property and income will not be lost due to the behavior, liabilities and accidents of the beneficiary. Trust property is independent, which can avoid the risk of property loss such as property being impersonated, pursued by creditors and sealed up by in-laws.
2. Trust can meet the diversified needs of family wealth management and inheritance.
First, the trust structure can realize the management and inheritance of various family assets. Common family assets, including cash, insurance, real estate, equity and other physical assets, can be transferred to the trust name for management and inheritance. Second, tax planning can be achieved through trust structure. Bringing family fortune into the trust structure for management can avoid the inheritance tax introduced in China in the future. Third, trust can realize the personalized distribution and inheritance of family fortune. A trust contract can be established according to the wishes of the trustor, and the timing, method, type and amount of distribution of beneficiaries and trust benefits can be flexibly determined according to the needs of the trust purpose, and the medium and long-term rights and interests can be distributed through the trustee.
3. Trust can meet the needs of family business governance and sustainable development.
Transferring the equity and all other properties of the family business to the trust name can safeguard the identity and integrity of the family business and avoid the shrinking of family fortune and the decline of the competitiveness of the enterprise due to the separation of children.
First, establish the governance structure of family and family business through family. Second, standardize family members' entry into family enterprises and management, and formulate targeted family talent selection and training systems. Thirdly, the institutional incentive for non-family members to enter the management of family enterprises is conducive to gathering talents and realizing the sustainable development of family enterprises.
4. Trust is confidential, continuous and stable.
One of the outstanding advantages of offshore trust is that it keeps customers' information highly confidential. In recent years, with the promulgation of the Overseas Account Tax Compliance Act of the United States and the Standard for Automatic Exchange of Tax-related Information in Financial Accounts of the Organization for Economic Cooperation and Development, the confidentiality of trust deposit account information of American tax residents and non-tax residents in various countries has been weakened.
The continuity and stability of trust means that the established trust will not be affected by the existence of the principal or the trustee. Even if the trustee goes bankrupt during the existence of the trust, the trust property will not be liquidated as the trustee's bankrupt property because of its independence, and a new trustee can be entrusted to continue management.
In the case of establishing a trust by will, even if the designated trustee refuses to accept the trust or cannot act as the trustee, it will not affect the effectiveness of establishing a trust by will. At this time, as long as there is no contrary provision in the will, you should choose someone else as the trustee in accordance with the method stipulated in the trust law.
(b) The limitations of trust in managing and inheriting family property.
1. has high requirements for the trustee's integrity and management ability.
Our country lacks the tradition of trust culture, and there is no soil environment to produce and cultivate the culture, religion and legal system of British and American trustees. Although China has introduced the commercial trust system, trust companies have been engaged in the "second bank" and issued the "subordinated debt" business with China characteristics, relying on the chartered financial license of CBRC.
Trust companies rarely set foot in family fund trust, equity trust management business, real estate trust management business, art and collection management business, family affairs management business and other businesses with less risk and stable long-term returns, and lack management experience. It is not easy for institutions and individuals other than trust companies to gain the trust and recognition of customers in a short time.
2. Building trust requires a higher legal support environment.
The stability of trust legal relationship depends on whether the trust legal environment is mature, whether the trust system is perfect, and the trust has higher requirements for the legislative environment of the place of establishment. The trust legal environment in Britain and the United States is very perfect, and the trust legislative environment in the British Virgin Islands, Cayman Islands, Bermuda and other offshore places is relaxed and perfect. These countries and regions have become the first choice for entrepreneurs and high net worth individuals to set up trusts.
The establishment of trust in China, in addition to capital trust, also faces some problems, such as equity trust, real estate trust can not be effectively established due to trust registration, trust tax system is not clear and so on. In addition, compared with trust developed countries, China still lacks a trust law or trustee regulations to regulate the trustee's behavior, and lacks a large number of family trust establishment examples and rich case support.
2. What are the advantages and disadvantages of insurance trust?
1. Advantages of insurance trust 1, and the threshold of insurance trust is low: at present, the threshold of domestic family trust is high, and millions of funds can be used for trust, but insurance has a leverage effect, and the amount of insurance can reach the threshold of trust, which reduces the threshold of trust to some extent. 2. Break through the beneficiary restrictions: the designation of trust beneficiaries is flexible, not limited to immediate family members, and even includes the unborn third generation. 3. Flexible payment arrangement: The trust can flexibly set the payment plan according to family needs, so as to determine the payment amount and payment time and effectively allocate funds. 4. Debt isolation: Insurance trust makes insurance money independent of property and does not participate in the beneficiary's debt repayment or property division. 5. Secondary beneficiaries can be designated: secondary beneficiaries can be designated. If the primary beneficiary does not meet the payment conditions, the secondary beneficiary will distribute the remaining trust property equally to prevent the property from flowing out. Second, the disadvantages of insurance trust 1, the property is not independent: before insurance claims, the policy property will be affected by the policyholder's debt, marriage division and other aspects, and the function of wealth preservation is weak. 2. Leverage has limitations: the leverage of domestic policies is relatively weak, and it still needs more self-owned funds to support it, which is not suitable for ordinary families. At the same time, the interest rate of policy loans is high, and there will be no small interest pressure to amplify leverage with policy loans. Insurance Trust Insurance Trust is a management service tool in family wealth. For the purpose of wealth protection, inheritance and management, the client regards the relevant rights [such as death insurance, survival insurance and dividends (if any)] and corresponding benefits [such as death insurance, survival insurance and policy dividends (if any)] and funds (if any) of the life insurance contract as trust property. The trust company manages, uses and disposes of the trust property according to the trust contract signed with the client, so as to realize the continuation and performance of the client's will. Insurance trust is a cross-disciplinary trust service that combines insurance and trust affairs management services, not a wealth management product.
Third, is the trust risk big? Is the income high? What are the advantages and disadvantages? Finally, please be careful. ...
Trust is a deformed financial product in China at present, and it is another way of shadow banking. Because the general high income is bound to have high risks, but trust law and license plate and other factors have led to this "characteristic" wealth management product. Trust projects belong to the financing category, and provide financing for customers with real estate, minerals and equity as collateral. Good projects may be jointly guaranteed by large state-owned enterprises, or they may be poor in their own funds. Trust financing interest with high margin of safety will not be too high. But higher than the bank wealth management products in the same period. The general income is between 7%- 10%, which varies according to the amount and duration of investment. Risk: Recently, some real estate project financing trusts are difficult to pay after their expiration, and the trust will reach the centralized payment period. When the tide recedes, you will find who is swimming naked! The specific analysis and suggestions are as follows: 1. Safety is to invest in the project through customer financing, risk control of trust investment, investment target, mortgage rate, whether there is guarantee or not, and whether there is guarantee for inferior funds. These elements are the basic terms to ensure the safety of the trustor, and any trust needs to know these elements; 2. The rate of return is directly proportional to safety. The safety of trust projects with high yield is doubtful. If the return to customers is 12- 15, imagine: which field has such a good return? 3. Liquidity trust products generally have a long term, so it is recommended to give priority to products with a term not exceeding 1 year, and the possibility of default and risk exposure is small. 4. Channels and channels are also important factors in determining the safety of purchasing trust. There are many channels for financial management. At present, the common channels are banks, brokers, trust companies and third-party financial institutions. Low-risk and low-yield products can be purchased directly from banks, with little difference; Brokers have just started to make trust products, and the supervision and risk control are ok, which is not bad from the beginning; Generally speaking, it is not recommended to participate in third-party financial institutions. At present, domestic supervision or risk prevention is not perfect; 5. Suggestions on family financial management The main family financial management structure should be that value preservation is the primary factor. If it cannot be saved, how can I add it? There are long and short terms, so don't be fooled by high returns. Income and risk are twin brothers and sisters. The above is for reference and I hope it will help you. If you have any other questions, you can ask questions or write privately, and hope to adopt them.
4. What about the trust project done by Zendai Group?
Zendai Group is a listed company from Shanghai to Hong Kong. Some properties developed in Shanghai have a good reputation, such as Zendai Thumb Plaza and Zendai Home, with assets exceeding 10 billion. However, there are still some problems to be clarified in terms of the advantages and disadvantages of trust projects. As the Zendai Group in Shanghai, it is necessary to find out who the subject is, and some projects only borrow some high-quality trusts that will be forged. Believe it, if Zendai invests in local real estate in Shanghai, it will be considered as a relatively high-quality project. If you invest in art, or not, then I suggest you don't buy this product. The quality of trust projects is also related to the trust institutions themselves. Try to choose trusts with strong strength and perfect management system, such as Ping An Trust, Shanghai International Trust and CITIC Trust.