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.

Extended data:

Own advantages

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.

References:

Baidu Encyclopedia-Family Trust