In the 20 12 China Rich List, half of the people on the list are over 50 years old, and the average age of their eldest son and daughter is over 35 years old. Based on this calculation, in the next 5~ 10 years, China family business will usher in the largest family inheritance in history.
The Report on the Development of Family Business in China released by the All-China Federation of Industry and Commerce shows that, in sharp contrast to the strong family inheritance will of the first generation of family businesses, less than 20% of the children of business owners have the will to succeed. The rich class in China is expanding, and their wealth is increasing. The first generation of rich people are "divorced and old", and the problem of family wealth disposal has become increasingly prominent. The traditional practice in China is to "divide property". In the case of divorce, the husband and wife divide the property; If you die, it's easy to distribute the property according to the will. The management period of family trust is generally more than 30 years. Different from the most common collective trust in China, family trust is a product specially tailored for high-net-worth customers. We don't set the expected annualized rate of return, and we don't agree on good investment projects. Instead, we allocate investment products according to customers' risk preferences. This kind of trust can establish other beneficiaries, change the beneficiaries halfway, or limit the rights of the beneficiaries.
In the distribution of trust benefits, we can choose one-time distribution, regular quantitative distribution, temporary distribution, conditional distribution and other different forms. "According to the characteristics of the family trust, Faye Wong can choose to allocate some funds when her daughter goes to college. You can also set many additional conditions for your daughter to inherit property, such as getting married and not entering the entertainment circle. " Sun Fei, executive chairman of Beijing-based international financial investors, said. 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 on their behalf, so as to achieve the goal of wealth planning and inheritance for the rich. It first appeared in the United States after 25 years of economic prosperity (1982 to 2007, known as the second gilded age in the United States). In family trust, the ownership of assets and the right to income are separated. 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 can better help high-net-worth people plan "wealth inheritance", and it is gradually recognized by the rich in China.