With the implementation of the inheritance tax, there is a growing number of the high net worth individuals choose Family Trust as their method of wealth management.
A family trust includes a settlor, a trustee and one or more beneficiaries. The settlor is the person who sets up the trust. Trustees are responsible for managing the trust, who are the nominal owner of the properties and have a legal obligation to deal with the properties. The trustees, like a judge, have a power to decide the beneficiaries who will receive payments from trust and select the amount of trust properties that the beneficiary receives. Beneficiary is a person who benefits from the trust and usually includes family members and prospective family members.
The main purpose of Family Trust is to pass the properties and assets to family members or other beneficiaries through a tax-saving way. It is created by a settlor, who transfers his own properties and assets to the trustees. The trustees manage the trust on behalf of the beneficiaries and make payments from the trust property to the trust beneficiaries. A family trust is created in the case of the settlor’s accidental death and has certain tax advantages.
Family trust is designed for the high net worth individuals. It is used to allocate trust assets based on the clients’ risk preferences without set the expected annual rate of returns or provide an investment project. The benefits of family trust are obvious by comparing with the traditional legal inheritance. A family trust can allocate assets according to the specific intentions of a settlor, which is relatively flexible. Properties and assets under the trust are not subjected to probate when the settlor dies, and will continue to be distributed to the beneficiaries according to instructions of the trust. It is also a way to avoid the inheritance tax and income tax. According to the tax law of different countries and regions, the family trust under reasonable design can retain the most of the settlor’s property and decrease the outflow of taxes.
What can we do?
Desupline is committed to providing the highest quality family trust services for its global clients through the following:
a) We intend to provide customized trust design based on clients’ specific requests;
b) We will help to select trust beneficiaries and appoint appropriate trustees;
c) We will set up a professional team includes professional lawyers, tax accountants, foreign experts and investment managers to serve our clients especially;
d) We also hope to provide other trust-relevant services, such as wealth management consulting, tax legal advisor, etc.