Family Trust means that the Settlor transfer his assets to the Trustee, and the Trustee will manage the assets in accordance with the terms and conditions set out in the Deed of Trust, distributing the assets to beneficiaries in designated circumstances.

Family Trust is an effective wealth management solution, by signing a standard deed and a letter of wishes, establishing the purpose of financial products for customers, to achieve purpose of asset isolation protection, investment management, wealth management, property inheritance and retirement planning. The initial trust property of a family trust can be:

  • Liquid Asset: including cash, securities and fund units
  • Fixed Asset: including lands and properties, operating business, find arts, antiques and collectibles
  • Contract and Agreement: including insurance policies, private contracts and business agreements
  • Intangible Asset: including copyrights, patents and trade marks

Benefits of Family Trust

  • To avoid the formalities of the court certification, expensive expenses and the inconvenience of preventing the long-term freeze of the estate, the estate can be quickly distributed.
  • Heritage materials keep private, would not become public records like wills.
  • There is a maximum degree of control over dominance.
  • When the settlor loses his statutory physiology and ability to determine his will, he does not need to appoint an asset manager through the certification court.
  • With flexibility, the settlor can increase assets at any time as needed, establish a “durable power of attorney” to appoint someone to deal with when he cannot manage affairs.
  • It is difficult to refute arguments, promoting family harmony and stability.
  • Spending money for pleasure is the killer of wealth inheritance, and it is also one of the important reasons why “rich but not over three generations”. In the past, people did not know what to do when faced with such problems, now there is no need to worry about this. Family Trust can allocate property in full accordance with your wishes, avoiding profligacy.

How to set up a family trust? The simple process of establishing a family trust mainly includes:

1) Confirmation of Trust Structure

2) Conducting Client Due Diligence

3) Independent tax advice

4) Signing Deed of Trust and Letter of Wishes

5) Asset Review

6) Asset Transfer