Is the threshold for family trust too high? Expert: Lower the threshold and make wealth inheritance no longer out of reach

Family trusts have always been a wealth inheritance tool for high-net-worth individuals, but the high threshold has deterred many people. According to Professor Han Liang, director of the Capital Market Research Center of Nankai University, at the "2022 Banking Industry Development Forum", the current threshold for family trusts is generally above 10 million yuan, which is obviously too high. However, the value of family trusts lies not only in wealth management, but also in ensuring the security of family property, realizing wealth inheritance, and providing property protection and management for special groups such as the disabled, minor children, and the elderly alone. Lowering the threshold for family trusts to benefit more people is an important issue. It is recommended that you consult a professional financial planner to choose an appropriate trust plan based on your own situation, so that wealth inheritance is no longer out of reach.

The practical advice in this article is as follows (read on for more details)
Practical suggestions for “family trust threshold”:

1. Take the initiative to consult a professional financial planner: Don’t be deterred by high barriers to entry! Many trust companies now offer diversified trust solutions, and you can find a suitable solution based on your personal needs and financial situation. Consult a professional financial planner. They can help you understand various options for family trusts and provide customized planning suggestions, such as small trusts, mutual trusts, etc., so that you can enjoy the advantages of family trusts at a lower threshold.
2. Pay attention to policy changes: The government is actively exploring measures to lower the threshold for family trusts, such as launching family trust products with smaller amounts and simplifying the trust establishment process. Pay attention to relevant policy developments and actively participate in trust-related lectures or seminars to keep abreast of the latest trust information and prepare for the establishment of family trusts in the future.

These suggestions hope to help you better understand the threshold of family trust, actively seek solutions that better suit your needs, and achieve the goal of wealth inheritance.

Family trust: a new way for ordinary families to inherit wealth

Family trusts have gradually come into the public eye in recent years and have become an important tool for wealth management for high-net-worth individuals. However, the high threshold has prevented many ordinary families from enjoying the advantages of family trusts. In fact, family trust is not just for the rich. It is an effective wealth management and inheritance tool that can help ordinary families achieve the following goals:

Ensure the safety of family property

The traditional inheritance method can easily cause property losses due to accidents, diseases and other emergencies, and even lead to family disputes. A family trust can entrust the management of property to a trust company and designate beneficiaries to ensure the safety of the property and not be affected by personal factors.

For example, a couple can set up a family trust, entrust their joint property to a trust company for management, and designate their children as beneficiaries. Even if one party unfortunately has an accident, the other party can still enjoy the right to use the property, and the children can successfully inherit the property when they become adults, avoiding family conflicts caused by uneven distribution of property.

Realize wealth inheritance

Family trusts can pass wealth to the next generation in an orderly manner and avoid family conflicts caused by uneven distribution of property. At the same time, it can also help parents better control the distribution of property, ensure that their children can make reasonable use of property and avoid squandering.

For parents who want to pass their assets on to their minor children, a family trust can provide effective protection. The trust company can formulate a reasonable property distribution plan based on the parents' wishes and gradually release the property to the children after they reach adulthood to avoid property losses caused by the underage children's lack of financial management experience.

avoid inheritance tax

Family trusts can be tax efficient. By placing property in a trust, you can avoid personal property income tax and reduce the inheritance tax burden. At the same time, it can also help families effectively avoid property disputes and ensure the safety and stable inheritance of property.

In addition, family trusts can also help families increase their wealth. Trust companies can formulate reasonable investment strategies based on the family's financial goals, help maintain and increase the value of property, and achieve sustainable growth of wealth.

In short, family trusts can help ordinary families inherit wealth, ensure property security, avoid inheritance taxes, and increase the value of wealth. As the threshold for family trusts is lowered, more people will be able to enjoy the convenience of wealth management and inheritance it brings.

Family trust: Breaking down high walls and benefiting thousands of families

In recent years, family trusts have gradually come into the public eye and become an important tool for wealth management. However, the high threshold has prevented many special groups such as ordinary families, disabled people, minor children, and orphaned elderly people from enjoying the advantages of family trusts. This has also made “family trusts” the exclusive preserve of the wealthy, far removed from the lives of ordinary families.

So, how can family trusts get out of the high walls and benefit thousands of households? Lowering the threshold is the key.

Lower the threshold and benefit more people

Inclusiveness: Family trusts should lower the threshold so that more people can enjoy the convenience of wealth management and inheritance.
Security: Family trusts can effectively protect the safety of family property, avoid property losses due to accidents, diseases and other emergencies, and protect the interests of family members.
Inheritance: Family trusts can help families pass on wealth to the next generation in an orderly manner, avoid family conflicts caused by uneven property distribution, and promote family harmony.
Fairness: Family trusts can provide property protection and management for special groups such as the disabled, minor children, and the elderly alone, protect their legitimate rights and interests, and achieve fair distribution of wealth.
Social nature: Family trusts can use charitable funds to use wealth for public welfare, give back to society, and promote social progress.

Specific measures to lower the threshold

Lowering the capital threshold: Trust companies have launched family trust products with smaller amounts to lower the capital threshold and make them affordable for more ordinary families.
Diversified services: Trust companies can provide more diversified family trust services to meet the special needs of different families.
Transparent operation: Strengthen the transparency of family trusts, let customers clearly understand how the trust operates, and avoid risks caused by information asymmetry.
Strengthen publicity: Strengthen the publicity of family trusts to let more people understand the advantages and functions of family trusts.

Let wealth inheritance no longer be out of reach

The essence of family trust is to help people achieve the goals of wealth management and inheritance. It should become a universal service rather than a tool limited to the rich. Lowering the threshold of family trust so that more people can enjoy the convenience it brings is the trend of the times and the need of social development. We believe that with the lowering of the threshold for family trusts, more families can safely protect their family heritage and achieve the goal of wealth inheritance, making wealth inheritance no longer out of reach!

Family trusts benefit special groups, and it is urgent to lower the threshold

Family trusts can not only protect the wealth of wealthy families, but more importantly, they can provide important property protection and management for special groups. For example, for people with disabilities, a family trust can ensure that they can still enjoy the protection of their property even if they are unable to take care of themselves, and avoid the loss of property due to their condition. For minor children, a family trust can avoid the risk of the children’s property being left unmanaged or misappropriated by others due to a parent’s accident or illness, ensuring that the children can receive stable financial support as they grow up. For the elderly who are alone, family trusts can help them properly manage their property, prevent them from being deceived or exploited by others due to their old age and frailty, and ensure that they can enjoy their old age in peace.

More importantly, family trusts can help these special groups achieve wealth inheritance, so that after they pass away, they can still pass on their property to their relatives or society and realize their life value. For example, a person with a disability can pass his or her property to his or her siblings or friends through a family trust so that they can receive help in their future lives. A minor child can pass his property to his children through a family trust, allowing them to obtain stable financial support as they grow up. A lonely elderly person can contribute to society by donating his property to charity through a family trust.

However, the current high threshold for family trusts limits many special groups from enjoying its benefits. For many people with disabilities, minor children, and the elderly alone, they may not be able to afford the high cost of setting up a family trust. Therefore, it is crucial for them to lower the threshold for family trusts and allow more special groups to enjoy its protection and management.

The necessity of lowering the threshold for family trusts has become a consensus, and relevant institutions are actively exploring and implementing it. For example, some trust companies have launched family trust products with smaller amounts, lowering the capital threshold. At the same time, the government has also introduced some policies and measures, such as encouraging the development of charitable trusts and lowering the threshold for the establishment of charitable trusts.

I believe that as the threshold for family trusts is lowered, more people, especially those special groups in need, will be able to enjoy the convenience of wealth management and inheritance it brings. Let the inheritance of wealth no longer be out of reach, so that every family can protect the family legacy with peace of mind, so that everyone can enjoy the protection and inheritance of wealth.

Family trusts benefit special groups, and it is urgent to lower the threshold

special groups	Benefits of family trusts	The importance of lowering barriers to entry
Disabled people	Protect property and avoid loss of property due to one’s own conditions	Reduce establishment costs and allow more people with disabilities to enjoy property protection
minor children	Ensure that children receive stable financial support as they grow up and prevent property from being left unmanaged or misappropriated by others.	Reduce establishment costs and allow more minor children to enjoy property management
lonely old man	Help manage property properly to prevent being deceived or exploited and ensure a comfortable retirement	Reduce establishment costs and allow more lonely elderly people to enjoy property management and protection

Lower the threshold for family trusts to allow more people to enjoy its benefits

The threshold for family trusts is too high, which has deterred many families. This is a worrying phenomenon. Lowering the threshold of family trust so that more people can enjoy its benefits is an urgent issue that needs to be solved.

Diversified trust solutions to meet different needs

Trust institutions should actively innovate and introduce more flexible and diversified trust solutions to meet the needs of different families. For example:

• small trust: Lower the minimum trust amount to allow more families to participate. For example, an education savings trust for young families or a medical care trust for the elderly can set a lower threshold to facilitate them to incorporate part of their property into trust management.
• online trust: Simplify the trust establishment process and reduce establishment costs through the online platform. Online trusts can allow more families to set up trusts conveniently and quickly, reducing cumbersome procedures and fees.
• Customized trust: Provide customized trust solutions based on the property status and needs of different families. For example, more refined services can be provided for families with special needs, such as inheritance distribution, property protection, charity, etc.

Government policy support reduces trust costs

The government should introduce relevant policies to encourage the development of the trust industry and reduce the costs of trust establishment and management. For example:

• tax benefits: Reduce trust establishment, management and inheritance taxes, reduce trust costs, and attract more families to participate.
• trust training: Strengthen the popularization and promotion of trust knowledge and enhance the public’s understanding and acceptance of trust.
• legal protection: Improve the trust legal system, provide more solid legal protection for trust operations, and allow more families to use trusts with peace of mind.

Break down conceptual barriers and promote trust culture

Family trust is not just a tool for the rich, it is a modern way of wealth management and inheritance, which can help more people achieve the security and inheritance of wealth. We need to break traditional concepts, let more people understand the value and function of trust, and actively promote trust culture.

For example, trust institutions can hold public lectures, offer online courses, and produce relevant promotional materials to let more people understand the advantages of trusts and master the knowledge of establishing and managing trusts.

It is our common goal to lower the threshold of family trust and allow more people to enjoy the convenience it brings. Only when trust services become more popular and more families can enjoy the benefits brought by trust can we better realize the inheritance of wealth and protect the family legacy.

Family trust threshold conclusion

As an effective wealth management and inheritance tool, the value of family trust has gradually been recognized by the public. However, the high Family trust threshold But it prevents many ordinary families from enjoying its advantages. reduce Family trust threshold, benefiting more people has become a social consensus. Through diversified trust solutions, government policy support and breaking down conceptual barriers, we can make Family trust threshold It will no longer be an obstacle, allowing more families to enjoy the convenience of wealth management and inheritance, and making wealth inheritance no longer out of reach.

Family Trust Threshold Frequently Asked Questions Quick FAQ

How high is the threshold for a family trust?

The threshold of family trust has always been the focus of many people's attention. At present, the threshold of most trust companies is generally above 10 million yuan, which indeed prohibits many ordinary families. However, as society's demand for family trusts increases, more and more trust companies have begun to launch trust products with smaller amounts, lowering the capital threshold. It is recommended that you consult a professional financial planner to learn about a plan that is more suitable for you.

Do ordinary families need to set up a family trust?

Family trust is not just for the rich. It is an effective wealth management and inheritance tool that can help ordinary families achieve the following goals: ensure the safety of family property and avoid property losses due to accidents, diseases and other emergencies; realize wealth inheritance , pass wealth to the next generation in an orderly manner, avoid family conflicts caused by uneven distribution of property; protect vulnerable groups, provide property protection and management for special groups such as the disabled, minor children, orphans and the elderly, and protect their legitimate rights and interests . If you have these needs, you may consider setting up a family trust.

How to lower the threshold for family trusts?

Lowering the threshold for family trusts requires the joint efforts of the government, trust companies and society. The government can introduce relevant policies to encourage the development of the trust industry and reduce trust establishment and management costs, such as tax incentives and trust training. Trust companies can actively innovate and launch more flexible and diversified trust solutions, such as small trusts, online trusts, customized trusts, etc., to meet the needs of different families. Society also needs to break traditional concepts, let more people understand the value and functions of trusts, and actively promote trust culture.