Reborn Wealth America

Abel's idea is.

It is an established fact that the tax avoidance plan of charitable foundations must be carried out.If you don't do this, think about paying so much money to the federal government every year.It's a bit heartache to think about it, but there are even more terrifying inheritance taxes and gift taxes.

But in addition to the charity foundation, Abel is also preparing to establish another trust fund.The charitable foundation will be the controlling company of Abel's companies in the future, but it is prepared to cut off another part of the proceeds and use it as the family's asset trust fund.

In the future, there will be his children and his women, so they will receive a certain amount of income from the family trust fund every year.

His tentative plan is 20 years, because after 20 years, his children will slowly grow up!

He expressed his thoughts to Frank Austin. After thinking about it for a while, Frank Austin replied softly: "Boss, although the twenty-year trust plan is very long, it is very important for most countries or regions. In terms of the time limit, twenty years is actually very short! This means that if you want to transfer the trust assets to your child after he reaches adulthood, you still need to pay gift tax..."

"Uh..." Abel was taken aback for a moment, "That's the case! Is twenty years still short? After such a long time, I still have to pay taxes."

The barrister laughed and said: "Different trust combinations can be formed according to different types of trusts, different contracts, and different periods! To avoid paying gift tax, you can only use permanent trusts. If there are still 20 years to set the period, I am afraid Only a few places such as the state of Telawi in the federal territory can choose! Under the same conditions, the Hong Kong in China is 80 years, the Cayman Islands is 150 years, the British Virgin Islands is 100 years, and Jersey is 100 years... There are very complicated settings!"

The settlor and the settlor can flexibly customize the various regulations when formulating the contract, resulting in different types of family trusts, which can be roughly divided into six types: 1. Revocable trusts; 2. Irrevocable trusts; 3. Discretionary trust; four, waste trust; five, fixed trust; six, permanent trust...

Permanent trusts may be "exempted from paying transfer tax forever", so it was not until 1980 that the United States gradually allowed the establishment of permanent trusts. However, the regulations of each state are different. At present, only a dozen states allow such trusts.It is possible because this regulation may also be abolished by the government. After all, no regulation is fixed, even the highest-level constitution.There is also the possibility of being modified!

Generally speaking, family trusts serve wealthy families with total assets of more than US$200 million.But later, many families used it very widely, and the average wealthy family would also use this tool to plan and inherit their property, and it has gradually been touted by the rich all over the world.

Generally speaking, the reasons why wealthy people set up family trusts are different.

Some people are for the flexible inheritance of wealth.Take Abel, for example. He cares very much about whether his family property can be inherited by his descendants. The ultimate goal of charity is of course not for charity itself, but for tax avoidance!In this regard, Abel did not hesitate to put forward his final requirements to his own legal team and accounting team led by Frank Austin.

Some people are isolated for property safety.The principal is mostly the actual controller of the enterprise.In reality, the assets of enterprises and individuals cannot be clearly defined. When an enterprise faces a financial crisis, personal assets often become the object of debt recovery.The trust assets exist independently, and their nominal ownership belongs to the trustee, and they are separated from other properties of the trustor, trustee, and beneficiary.

Therefore, any changes in the settlor will not affect the existence of the trust assets. The beneficiary obtains the benefits and the management authority specified by the trust documents by enjoying the beneficial rights of the trust (not the estate itself).This way, on the one hand, the creditor has no right to recourse against the trust property (unless the trust property is illegally obtained), which reduces the possible significant adverse effects of business risks on family wealth; it also prevents the client’s family from squandering the wealth in the short term .

The most important thing is through a family trust.People other than the beneficiaries cannot fight for the estate through court judgments, thus avoiding related legal disputes.Of course, to achieve this goal, you need to plan ahead. It will be too late to set up a trust until the property is about to be recourse or frozen.

Using trusts to avoid taxes and save taxes is also one of Abel's goals.In fact, the important purpose of establishing a trust in the United States is to save tax.This resulted in different forms of trusts, including: qtips, which allows spouses to be exempt from inheritance, and the trustor can also change the beneficiary; qdots, which allows non-American spouses to be exempt from inheritance; and qprt.Allow the principal to discount the donated assets when giving gifts in order to enjoy tax benefits; gst.Different types of trusts can be exempted from inter-generational transmission tax.

There are also inter-generational trusts and family business inheritance. Family trusts set up trusts for the benefit of several generations, such as the Rockefeller family.In addition, for those who have a family business, it is more necessary to realize efficient and stable family equity transfer and management during their lifetime, and try to avoid unnecessary equity structure changes to prevent the inheritance of equity from causing unqualified shareholders to enter the enterprise.

“In the United States, many family businesses are managed by family trusts or held by them, which can ensure family members’ control over the company, achieve a stable shareholding structure, and eliminate unqualified shareholders; at the same time, the introduction is of great help to corporate development External managers manage corporate affairs and realize the long-lasting foundation of the family business."

"When a family trust is established, the management and use of the trust assets are carried out in the name of the trustee. Except for special circumstances, the trustor has no right and obligation to disclose the operation of the trust assets to the outside world. When using a family trust, before the death of the trustee , The property has been transferred, avoiding the process of heritage certification."

Frank Austin introduced some of the family trust to Abel in a very easy-to-understand way, as well as some examples that exist today. Sometimes when he encounters a term that Abel does not understand, he will use plain and easy-to-understand terms. The analogy of "In fact, benefiting from family trusts, at least half of the companies on the global Fortune 500 rankings still have a greater say in the descendants of their original founders, such as the Walton family, the Ford family, and the stars. Home, LG furniture, Carrefour’s Harley family, etc.!"

Abel nodded thoughtfully, then let out a sigh of relief, and smiled: "This is another field that is completely unfamiliar to me, no matter how long it is, it may be better for them, and a gift Grandchildren, the benefits will last longer!"

"Does the boss have any requirements regarding this trust plan?" Frank Austin asked.

Abel replied slowly: "I hope to customize a set of permanent trust plans for each of my children, with entrusted funds of one billion dollars per person!"

Billion dollars, tuts... Tyrant!If the boss gives birth to a few more in the future, it would be terrible just to be a permanent trust fund.

Frank Austin pondered for a moment and asked: "The group will design the trust plan and then form the trustee committee. Or should it be handed over to a third-party trustee?"

"I hope you give me a professional suggestion!" Abel did not answer the question.