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.

Family fund management method

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.

Advantages of family fund

Compared with traditional legal inheritance and testamentary inheritance, family trust has obvious advantages and can realize reasonable risk avoidance functions such as bankruptcy risk isolation mechanism. The arrangement of family trust is also more flexible in the formulation and change of beneficiaries (testamentary heirs). At the same time, he reminded high-net-worth people who aim at family inheritance to pay attention to the provisions on trust beneficiaries in the trust plan when setting up family trusts.