-Wealth inheritance: smoothly and effectively transfer assets to relatives in the family according to the wishes of the client-across generations, without observing the legal succession order.
-Designated use: the trustee will use the trust property to pay for the beneficiary's education, life, medical care, venture capital and other purposes according to the client's wishes, and the transfer and payment methods are stipulated in the trust contract; Provide stable cash flow for minors; Avoid the profligacy of beneficiaries.
-Wealth preservation: the trustee reinvests the trust property to achieve the purpose of wealth preservation.
-Property isolation: to some extent, avoid the impact of uncertain factors such as debt disputes between customers and beneficiaries on property safety, and realize property isolation.
-Tax planning: The Trust Law has excluded trust property from the scope of inheritance. Before the formal laws and regulations on inheritance tax collection are clear, there is still uncertainty about whether it should be included in the scope of taxation, but there is room for exemption from inheritance tax; On the other hand, in the distribution of beneficiaries in the future, the beneficiaries' education, medical care and other expenses can be spent, not as their personal income;
And the tax basis of individual income tax is the annual personal income. Because the distribution period of trust property income to beneficiaries is long, and the distribution amount can be smooth, the beneficiaries get a certain amount of income distribution every year within the distribution period agreed in the trust contract, and the applicable tax rate for collecting personal income tax will be significantly lower than that for obtaining a huge amount of income within one year.
The orientation of family trust business-undoubtedly, serving the wealthy class with the demand of wealth inheritance.
The purpose of family trust-the purpose of statutory trust
-Inheritance of wealth
-Asset protection and isolation
Marriage arrangement
-old-age security
-Tax planning
Charity.