It doesn't matter whether the trust built on Jia Yueting is true or not. But we should find that trust is an asset allocation product that high-net-worth customers must consider.
Trust originated in Britain and developed in the United States, especially referring to the act that the client entrusts his property rights to the trustee based on his trust in the trustee, and the trustee manages or disposes in his own name for the benefit of the beneficiary or for a specific purpose according to the entrustment will.
Based on the nature of trust. Trust products have a beneficiary, and only this beneficiary can enjoy the benefits brought by trust. When the trustor establishes a trust, it transfers the property rights, which belong to neither the trustee nor the trustor. Therefore, if the sole beneficiary is not the principal, then the trust cannot be used to pay off the principal's debts.
In other words, if we set the beneficiary as our relative when we buy the trust, then even if we have debt risk, this property is not necessary to repay the debt. Therefore, trust has played a role in avoiding debts.
If you can escape debt so easily, this is the rhythm of entrepreneurs. Is it that easy? For example, is it possible for an entrepreneur to get money and directly convert it into a trust product, and then don't have to pay back the money and work hard? Definitely impossible.
Trust property does have the function of isolating debts, but avoiding debts is not the purpose. If we want to achieve the goal of debt isolation, we need to make reasonable planning arrangements for the trust structure first, and then meet the relevant requirements of the law.
Although the trust property is independent, it is a general principle that the trustor, the trustee and the general creditors of the beneficiary cannot pursue the trust property and cannot enforce the trust property. However, according to the provisions of China's trust law, there are still exceptions: first, before the establishment of the trust, creditors have enjoyed the priority right to compensation for the trust property and exercised this right according to law; Second, the trustee handles the debts generated by the trust firm, and the creditors demand to pay off the debts; Third, the tax payable by the trust property itself; Fourth, other forms stipulated by law.
In China, there are also regulations on trust products, and trust property must be legal property owned and transferable by the client. Therefore, in our country, if the law considers the client's property illegal, it is likely that trust products will not be established, and the purpose of isolating debts and inheriting wealth will not be achieved.
It is rumored that Mr. Jia has set up a trust fund in the United States. However, it is reported that setting up a private trust in the United States is much stricter than in China, and its trustees and trust lawyers need to conduct a comprehensive and intensive review of the clients, especially be cautious about the legality of the funds. If Mr. Jia can successfully set up a game in the United States, wouldn't it be that the United States has become a paradise for sheltering debt evaders? This probability is relatively low.
In many countries and regions except the United States, if the client is in debt within two years after setting up a private trust, it is likely that the trust will be revoked by the court to pay off the debt. However, if its creditors can prove that the trustor has committed fraud when establishing the trust, there is no time limit for creditors to apply for revocation of the trust.
Therefore, if you want to use trust to avoid debt, it may not be worth the loss.
The system of risk isolation and bankruptcy isolation formed by trust property gives it incomparable advantages over other types of products. Its independence makes the trust property have no legal defects when setting up a trust, which can resist the third-party litigation and ensure that the trust property is not infringed.
However, it should be understood that the trust does not have to repay the debts owed by future customers. However, if trust products are not thought of until there are problems with debts and taxes, it may be too late to achieve the effect of preventing risks by trust. Therefore, high-net-worth people should make plans early.