Rich people have no assets in their name. The richer the person, the fewer assets they have in their name. Why is this?
Although rich people have no assets in their names, they can easily control large amounts of money because their assets are placed in family trusts. Just by setting yourself and your family members as beneficiaries of the trust, you can manage your assets efficiently. This is the uniqueness of a family trust. When assets are placed into a trust, they no longer belong to the individual.
Take Hong Kong business tycoon Xu Shixun as an example. He passed away due to illness in December 2018, leaving an inheritance of approximately NT$42 billion. However, his only son Xu Jinheng did not directly inherit this huge inheritance. Instead, he received about 2 million yuan in monthly living expenses through the family trust fund. Behind this huge inheritance involves the wealth planning of three generations of the Xu family.
Starting from the first generation of shipping king Xu Aizhou, the Xu family has established a family trust fund to hold core family assets. Through this clever transfer of ownership, the family assets become independent. This arrangement ensures that no matter whether family members experience marital changes, death, or face debt or tort issues, the independence and continuation of the assets that have been transferred to the family trust fund will not be affected, and heirs will not compete for the inheritance.
The Hui Family Trust has attracted much attention because of the wealthy third generation Hui Jinheng who married Hong Kong Miss Reis Carina. Due to the establishment of a family trust, Xu Jinheng cannot obtain all the family property through inheritance and can only receive living expenses from the monthly family trust. Therefore, he cannot be a "prodigal son" no matter what.
The best state between people and wealth is not to own it, but to control it and benefit from it.
If you have debts that you cannot repay, others can seize your personal assets, but if you have no personal assets, then the assets of the trust company have nothing to do with you because they do not belong to you. In this case, the trust is your life insurance. If you want to pass your wealth on to the next generation, simply make them the trust beneficiary. The purpose of wealth inheritance is so that they will not be short of money to spend.
Therefore, many wealthy people will choose to use trusts to plan their assets in advance to achieve [isolation of assets and risks]. For example, Liu Qiangdong, the president of JD.com, put his assets and company stocks into a trust before getting married. In this way, even if the couple divorces or other accidents occur later, no one except the beneficiaries can obtain the trust assets, and the equity can also be firmly controlled. in hand.
The content of this article is for reference only and does not constitute investment advice or an invitation, solicitation or recommendation for any investment product. Readers are advised to make their own judgment and seek professional advice.
Any information on the 852Fin platform ("852Fin Information"), including but not limited to product comparisons, product ratings, blog articles, etc., is for general education and reference purposes only and does not constitute or intend to constitute any regulated advice, trust, immigration , insurance, finance, investment or other professional advice, recommendation, approval, endorsement, invitation, sale of insurance, trust, immigration, financial or investment products.
852FIN reminds readers that the content contained in this article/video is mainly from public information online and does not constitute any professional advice. Readers should seek professional advice with specific questions about products or services.
852Fin Information does not consider your personal needs, and reading the relevant information should not be regarded as a personal suitability assessment, nor can it form the basis for any decision to purchase products/services.
852FIN and the author of the pen column are not responsible for any loss or damage caused by the information contained or omitted in the article.
Before purchasing any product or service, you should conduct your own research based on the information provided by the company that provides you with the product or service, and/or seek independent and professional advice from a licensed professional. 852Fin information is collected, verified, and updated from different channels with our best efforts. 852Fin and its related parties, agents, directors, officers, and employees will not be held liable for any claims or losses arising from the relevant information. 852Fin also does not guarantee or guarantee the accuracy, completeness and timeliness of the relevant information.
Discussion about this post