On Saturday night, after settling Polly and Sally, Lin Yilong and Katie chatted very affectionately together on the balcony of the apartment.

In the press in the past few days, the scandal of "money for honor" has continued to ferment, and the two of them have talked about this.

"I'd like to get something to do with hereditary titles. Lin Yilong suddenly expressed his thoughts.

"I remember that you don't pay much attention to fame, why do you want to climb the feudal class tree that you have always despised today?" Katie sarcastically said.

"For the sake of property. Lin Yilong said, "Do you remember the beneficiary selection issue that we considered in the course 'Equity and Trust'?" ”

"What does this have to do with hereditary. Katie asked.

"You know, those high-ranking nobles have a trust fund for their families, and the general beneficiaries have nothing to do with specific people, they are all 'xx earls' or 'xx quasi-barons' on the title......."

"Please continue to ......"

"In the past few days, I have discovered the fact that in addition to avoiding property disputes, this has the advantage of avoiding inheritance tax. ”

If inheritance occurs in the UK, there will be two legal bases for levying taxes, the most important of which is inheritance tax, which is 40% inheritance tax as long as it exceeds a fixed tax-free share. For other reasons, the estate may also be subject to derivative tax.

For example, if Lin Yilong unfortunately passed away at some point, he left 10 million pounds worth of shares to his daughter A, then the daughter can only inherit 6 million pounds worth of shares minus inheritance tax. In addition, let's say that the stock worth 6 million pounds rose to 8 million when she took over, and she would have to pay 20% of the increase, which is 400,000 pounds of capital gains tax.

But it needs to be said that in fact, this part of the tax is mainly aimed at urban middle-class people like Lin Yilong (when he was a lawyer in Allen Binghamton).

Obviously, the working-class or blue-collar class or the waiter class serving dishes in ordinary towns generally live at a pace of earning and spending as much as they want, and then retiring step by step. Fifteen years after retirement, when the pension is exhausted, they will cash out or transfer their house and move into a public or private nursing home, and in general, even if they can leave some of their property, this part is unlikely to exceed £375,000 (inheritance duty exemption 2019-2020).

As for the so-called aristocracy, or the class that can structure family trusts, they can be tax-exempt in a special way.

Since the jurisprudence of inheritance tax is that there is an "inheritance" before the tax can be paid, then the legal basis for excluding this part of the "inheritance" is excluded and there is no need to pay tax.

Let's take Lin Yilong as an example, Lin Yilong left a will before his death, created a family trust, with himself as the trustee, and the beneficiaries are "all the clansmen who keep Lin Yilong's blood".

Theoretically, as long as Lin Yilong's descendants can survive, whether they are legitimate or illegitimacy, his descendants may be infinite, and the candidates among them can be fixed, they will not have to pay any taxes - because this cannot be regarded as an inheritance, but expands the benefits of the beneficiaries - and as long as the language is "prudent" in the trust notice, the intention of not paying inheritance tax can be realized.

(Author's note: The Declaration of Trust is not translated as a 'trust agreement', because the agreement or contract must be two-party, but the establishment of a trust does not require the permission of the beneficiary or even the trustee, and the beneficiary can claim rights by virtue of the content of the trust declaration as the original legal evidence.) )

"I mean, I've seen Downton Abbey. Lin Yilong, "Didn't Mrs. Crowley's property be put on Mr. Crowley's body according to the 'title inheritance' on the trust? ”

"HMM......" Katie thought for a moment, "Actually, if Yilong wants to, it's just..... For some unspeakable reasons, you will inevitably lose your title. ”

"What?" Lin Yilong asked.

"You're not European or African, not to mention native-born, you're not even Commonwealth-born....." Katie's eyes became uncertain, "Even if you invest in the UK, the title will not be greater than Sir Garter, so ......"

"That's just as well. Lin Yilong was a little depressed.

"Well, if only you had land in Scotland. Katie sighed, "Because if Scotland has land, you can add a Sir in front of your name, which can be regarded as a dream of nobility." ”

"Forget it, Freddy's lifestyle isn't for me. Lin Yilong shook his head, "It's just that when writing the trust declaration, you need to be more brain-studded to choose words and sentences." ”

"Then how about writing 'The Master of Bracken's Timberlands'. Katie suggested, knowing that it was a home for Lin Yilong.

"Actually, it's not good. Lin Yilong replied, "To tell you the truth, if you want this family trust to be retained and use the name of an owner, it is not so safe, because this needs to be recognized by the authorities, and you have to think of other ways yourself." ”

"I know you'll have a way. Katie laughed, "Besides, Yilong, you're still so young, why are you thinking about these issues?"

"You know that a few years ago, there was a rumor in the Celestial Empire that the inheritance tax was going to be levied. Lin Yilong talked about his reasoning, "Since the ECHR we have studied stipulates that property rights are only protected relatively, not absolutely. In any case, the world has 'alienated' people into speaking with wealth, and there is no way to do this. If 30 years ago, both the East and the West could have pursued something, but now, I think so. ”

"'Don't ask what your country can do for you, ask what you can do for your country. Katie quoted Kennedy.

"It's an interesting statement, but I'm focused on 'can it be'. Lin Yilong commented very seriously, "The power of the state is too great, and the power of the individual is too small, in the sense of the former, it is difficult to define the ability of the state and the individual with 'ability', and from the latter point of view, because of the different positions, 'personal ability' cannot be used." This subtle distinction gives me a very broad understanding – it's like using a trust to solve the estate tax problem, as long as I don't leave the property, I don't pay the tax. ”

"I've found that when you talk about it, it's like you've been electrocuted, and you're very sensitive. Katie sighed.

"It's inevitable. Lin Yilong replied, "When your education and the reality you experience are almost reversed, you will inevitably doubt everything – just like the adage: hope for the best, but prepare for the worst." ”