1. Essentially different: family funds are usually established on the basis of property donated or bequeathed by individuals or family members, which is more popular in Europe and America; Family trust is a kind of property management method that trust institutions are entrusted by individuals or families to manage and dispose of family property. American family funds originated from rich families in the gilded age, including Morgan, Rockefeller, Carnegie and Mellon.
2. Different establishment: separation of ownership and income right of family trust assets. Once the rich entrust the assets to the trust company, the ownership of the assets will no longer belong to him, but the corresponding income will still be collected and distributed according to his wishes. If the rich divorce, property division, accidental death or expropriation, the money will exist independently and will not be affected. Family trust has certain advantages over traditional legal inheritance or testamentary inheritance. For example, family trust can realize bankruptcy risk isolation mechanism and other reasonable risk avoidance functions. The arrangement of family trust is also more flexible in the formulation and change of beneficiaries (that is, testamentary heirs).
The main purpose of setting up a family fund is to operate, preserve value, manage and invest the property according to the wishes of the founder, and effectively arrange the property and its income, so as to benefit one or more "beneficiaries" who have kinship and interests with the founder.
Fund (broadly speaking, it refers to a certain amount of funds set up for a certain purpose, such as trust and investment funds, provident funds, retirement funds, etc. ), and in a narrow sense refers to funds with specific purposes and uses. Usually, funds mainly refer to securities investment funds. The income of securities investment funds comes from the future, and the performance of the income is inseparable from the performance of the investment target market, which has certain risks.
Trust is an act that the principal entrusts his property rights to the trustee based on his trust in the trustee, and the trustee manages and disposes in his own name according to the wishes of the principal, for the benefit of the beneficiary or for a specific purpose. Trust is a way of financial management, a special property management system and legal behavior, and also a financial system. Trust, banking, insurance and securities together constitute a modern financial system. Trust business is a legal act based on credit, which generally involves three parties, namely, the trustor who invests in credit, the trustee who is trusted by others and the beneficiary who benefits from others.