1. Safe separation of property

Making a will is the most common means of wealth inheritance at present, but the identification of the authenticity of the will, the identity of the heirs, the validity of different wills, the differences of inheritance laws in different countries, and whether there are legal reasons for the heirs to lose their inheritance rights may all lead to inheritance disputes.

Once a family has an inheritance dispute, family fortune may be consumed and eroded in the dispute, and even the family business may go bankrupt or be acquired by foreign capital due to contradictions. For wealthy people in the mainland, about 7% are business owners. In reality, there is often no clear definition between business property and personal property. When enterprises face financial crisis, personal assets are often unnecessarily exposed to the risk of corporate debt recovery. Trust assets exist independently, and their nominal ownership belongs to the trustee, which is different from other properties of the trustor, the trustee and the beneficiary. Any change of the trustor will not affect the existence of the trust assets, and the beneficiary obtains the benefits and the management authority specified in the trust documents by enjoying the trust beneficial right (not the inheritance).

Insurance+trust assets are stable under the trustee's name. On the one hand, the creditor of the trustor has no right to pursue the trust property (except the illegal income of the trust property), which has built a firewall between enterprise wealth and personal wealth, avoiding the possible major adverse impact of enterprise management risks on the family; On the other hand, it also avoids entrusting others to squander their wealth in a short period of time. Most importantly, through the structure of family insurance trust, people other than the beneficiary can't compete for the inheritance through the inheritance court, avoiding the emergence of legal disputes such as certification of wills, and playing the role of "settling disputes and stopping disputes".

2. Flexible inheritance of wealth

Compared with insurance, the beneficiary, trust purpose, property disposal method, income distribution conditions and methods, term and other terms of an insurance trust can be flexibly agreed by the principal and the trustee in trust deed according to actual needs. In addition, even if trust deed has established, when certain conditions are met, the client and the trustee can make more personalized amendments to the trust deed, such as: agreeing on the conditions for the beneficiary to obtain trust benefits, such as "the beneficiary is over 18 years old", "the beneficiary is married" and "after the beneficiary's children are born"; The trustee can also set the allocation arrangement of trust assets in case of emergency, such as the death of the principal or beneficiary, marital change, legal proceedings, etc. We can also make husband and wife trust assets or private trust assets according to the privacy requirements of our customers, so as to completely avoid the risk of marriage.

3. Tax avoidance, appreciation and preservation

In some western countries, the inheritance tax rate is as high as 5%. Although inheritance tax and gift tax have not yet been levied in the mainland, once they are levied, if wealth is passed on by inheritance, huge inheritance tax and gift tax may be paid. If a family insurance trust is established to pass on wealth to the next generation through trust income, inheritance tax and gift tax can be legally avoided because of the independence of insurance trust property (family insurance trust assets are not included in the client's estate).

4. Information is kept strictly confidential

Once the family trust is established, the management and use of the insurance trust assets are carried out in the name of the trustee, and the trustor has no obligation to disclose the trust assets, and the trustee also has the obligation to keep the information of the trustor, the beneficiary and the handling of the trust affairs confidential according to law, thus well protecting the property information of the trustor and the beneficiary from being disclosed.

Further reading: How to buy insurance, which is better, and teach you how to avoid these "pits" of insurance.