The prerequisite of trust funds is that the source of funds is legal, while the high source of funds is illegal. After all, TV plays are fictional, and such "unidentified" assets cannot be used as trust assets in real life. Article 11 of the National Trust Law clearly stipulates that if the trustor establishes a trust with illegal property or property prohibited by this law, the trust is invalid. There are also relevant regulations in Hong Kong. Before establishing a trust, the promoters of the trust must sign a capital certificate to ensure that their capital comes from legal channels. Whether in the Mainland or Hong Kong, the legality of trust property is a prerequisite.

In addition to the legitimacy of property, Gao was very planning-conscious when he set up a trust fund for his children. She knew that she and her sister might be in a precarious situation and could not take care of the children, so she made plans for them in advance.

Trust and fund are two independent but overlapping contents.

Trust means that the principal gives the property ownership to the trustee based on his absolute trust in the trustee, and the trustee manages the property according to the wishes of the principal, and the beneficiary is the person designated by the trustee.

A fund is similar to an investment. Several people put money together, invest in some way, and enjoy the benefits together. In fact, it is to choose a certain investment method or product to obtain income.

The intersection of trust and fund means that investors collect funds and give them to trust companies or trustees for investment operation through trust law, and the income from investment is distributed to these investors or beneficiaries of trust in proportion.

Therefore, in in the name of people, Gao is the trustee of the trust fund, while his sister is the trustee and the beneficiary is two children.

Differences between Mainland China and Hongkong Trust Funds

Chinese mainland's trust funds tend to invest in trusts, which collect investors' funds, entrust experts to invest, reduce investment risks and enjoy investment income, and are a wealth management product;

Trust funds established in Hong Kong are family trust funds, similar to estate planning. It is a tool for wealth inheritance, not a wealth management product, which is why it is necessary to set up a trust fund in Hong Kong.

The trust fund can guarantee the future life of the two children, and it can also pass on this wealth. It is a flexible way of wealth inheritance, which can decide when and how to distribute assets to beneficiaries. For Gao, a high-net-worth group, trust is a legal tool for transferring funds, and it is also the best choice to protect the lives of her and her sister.