1. Definition and Overview of Family Trust

Family trust is a system in which family members manage and protect family property and family interests by setting up trust funds. Involving the family members of the trustor, the family property of the trust property, the person or institution entrusted by the trustee with the family property, and the beneficiaries who enjoy the rights and interests of the trust property. Family trust aims at long-term protection of family fortune, smooth inheritance and means of financial management and risk control.

2. Functions and advantages of family trust

As a financial management tool, family trust has many functions and advantages. Family trust can help family members to ensure the protection and long-term inheritance of family property and avoid the risk of property division and bankruptcy. Family trust can use reasonable tax planning methods to reduce the tax burden in the process of property transaction and property transfer.

Family trust can provide some privacy protection, and trust assets are not publicly disclosed, which helps to prevent property disputes and external knowledge. Family trust can ensure the long-term professional management of family property in order to maximize family interests. Family trust can spread risks and realize financial diversification by distributing property to different beneficiaries or setting up sub-trusts.

3. The difference and boundary between family trust and tax evasion.

As a proper financial tool, family trust aims to effectively manage and protect family property, not to evade taxes. Family trust needs to operate legally and comply with the corresponding tax laws and regulations to ensure the fulfillment of tax obligations. Family trusts can legally reduce the tax burden through tax planning, but they must not illegally evade their tax obligations.

4. Operate the family trust in compliance with the law.

The operation of family trust should comply with the relevant laws and regulations of the host country, including the transparency of the establishment process, the legitimacy of the contract and the tax obligations stipulated in the tax law and property law. Professional trust institutions usually provide consultation and services to ensure the legal and compliant operation of family trusts and give guidance on tax planning.

Summary:

As a legal financial management tool, family trust aims to provide family members with means of wealth protection, inheritance and management. It has many functions and advantages, but it does not include tax evasion. Family trust needs to abide by laws and regulations, operate under the framework of legal compliance, and ensure the legality, sustainability and tax obligation of family property.