Trust And Family Trust
A trust is a contract, in which one party, known as a trustor, gives another party, the trustee, the right to hold title to property or assets for the benefit of a third party, the beneficiary.
The Key Roles in a Trust Arrangement
The settlor - This is the person who funds the trust with cash or other assets.
The trustee - This is the party responsible for investing trust assets, making distributions to the beneficiaries, and handling all the paperwork.
The beneficiary - This is the person who will receive any assets that are distributed from the trust.
The protector - This is the person who can be given the responsibility to supervise and approve trustee actions of all kinds.
The settlor has built an asset base and wants to ensure that those assets are distributed according to his or her wishes.
If the settlor ‘s assets get divided in divorce、debt collection of bankruptcy debts and die in accident, etc.,
the money will exist independently and will not be affected or prosecuted.
Family trust can help HNWI planning” wealth transfer”, so that every generation can function as successful creators, stewards and consumers of total family wealth.
AdvantageⅠ. Wealth inheritance
● carry out intergenerational inheritance.
● Taking care of young children、handicapped and old people.
AdvantageⅡ. Protection of your legacy
● Protect your privacy.
● Avoiding probate.The trust can protect your property.
Advantage Ⅲ. Tax planning
● Move away from high taxes Jurisdictions-Estate tax and gift tax...etc.
● Inheritance tax: Tops the 40% rate in the U.K、 Tops the 40% rate in the U.S、 Tops the 55% rate in Japan.
● Singapore、BVI、Jersey: No inheritance tax and Gift Tax charged.
11 Reasons to Start a Trust
3.Reduce Estate Taxes
4.Protect Your Property
5.Inheritance tax planning
6.Creates a Power of Attorney
7.Planning before immigration
8.Avoiding compulsory inheritance
9.Property protection when children get divorced.
10.Managing the assets sustainability when you are incapacitated.
11.Tax and Estate Planning for Multinational Families. (U.S. assets, Children who lives in the U.S.)