Generally, the starting point of family trust funds is 30 million, and some state-owned banks are 50 million and 60 million. According to the regulatory requirements, the minimum starting point of family trust is 6,543,800+million. So in general, the threshold of cash family trust is still very high, which is not acceptable to all customers. Insurance trusts generally set the entry threshold according to the total premium or total insured amount. Whole life insurance policies generally require a total insured amount of more than 5 million to connect with insurance trusts. At present, some companies have a starting point of 3 million, so it is meaningless to think that the starting point is too low. Life annuity policies generally require a total premium of more than 5 million (some require a total premium of more than 3 million). Therefore, from the perspective of capital threshold, the entry threshold of insurance trust is low, which is acceptable to many middle classes.

Second, from the perspective of payment methods.

Family trust and insurance trust can generally be paid by installments, and the family trust is at least 654.38+million per installment. If the insurance trust chooses an annuity policy, the first-year premium will probably be between several hundred thousand and 1 10,000; If you choose a life insurance policy, the first year premium may only need hundreds of thousands or hundreds of thousands. Therefore, the initial start-up capital of insurance trust is much less than that of family trust.

Third, from the perspective of wealth amplification effect.

Family trust has no wealth amplification function, and the wealth appreciation of family trust mainly depends on the asset management of trust company. The insurance trust in whole life insurance has a strong leverage effect. For example, the client is 30 years old and male. He chose to buy a 20-year whole life insurance docking trust. His first-year premium only needs 654.38+10,000 yuan to enjoy 6 million yuan of death protection. If the customer dies in the second year, 6 million yuan of death compensation will be credited to the trust account. There are nearly 60 times the wealth amplification lever.

First, the advantages of family trust funds

1. Dispose of resources professionally and reasonably according to customers' wishes. According to the concept of family trust fund, we can know that family trust fund entrusts family property to professionals for reasonable distribution according to the wishes of clients. Professional trustees can make capital create greater value, and reasonable resource allocation can optimize the capital structure of family businesses.

2. Handle the relationship between children and property more professionally. On the one hand, it is very important for family businesses, that is, the distribution and inheritance of property. Some children are too extravagant. If they are allowed to dispose of their property, it will cause a large outflow of enterprise property and the family business will suffer losses. The family trust fund has solved this problem reasonably, and worked out the amount and time for children to obtain property according to the opinions of the clients, which has given a lot of help to the development and healthy operation of the family business.

3. Trust funds can be used for reasonable tax saving and tax avoidance. The trustee or the trustee institution can formulate the way of property inheritance in a compliant and professional way, and effectively achieve the purpose of saving water and avoiding taxes according to these.

Second, the defects of family trust funds

Everything has two sides, and family trust funds also have their shortcomings. If the property manager selected by the customer is not professional enough or difficult to make a difference, it will lead to low liquidity or non-optimal asset allocation.