Abel's idea was.

It is an established fact that the tax avoidance scheme of charitable foundations must be carried out. If you don't, think about how much money you have to pay to the federal government every year. It's a bit heart-wrenching to think about, but there's an even more terrifying inheritance tax, a gift tax.

But in addition to the charitable foundation, Abel is also planning to establish another trust fund. The charitable foundation will be the controlling company of Abel's companies in the future, but he is prepared to cut off the other part of the income and use it as a separate asset trust fund for the family.

Later, there were his children, and later his women, so he received 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 told Frank Austin what he thought, and after thinking for a while, Frank Austin replied softly: "Boss, although twenty years is a long time for a trust plan, twenty years is actually a short time for most countries or regions! This means that if you want to transfer the trust assets to your child when he becomes an adult, you still need to pay gift tax......

"Uh......" Abel was slightly stunned, "There is such a thing! Twenty years is still a short time?

The barrister said with a smile: "According to the different types of trusts, different contracts, and different periods, different trust combinations can be formed! If you want to avoid paying gift tax, you can only have a permanent trust, and if there is a 20-year term set, I am afraid that only a few places such as Tel Avi in the federal territory can choose! And under the same conditions, Xiangjiang in China is 80 years, the Cayman Islands is 150 years, the British Virgin Islands is 100 years, and Jersey is 100 years...... There's a very complicated premise here!"

When the settlor and the trustee make the contract, they can flexibly customize various relevant provisions, resulting in different types of family trusts, which can be roughly divided into six types: 1) revocable trusts, 2) irrevocable trusts, 3) discretionary trusts, 4) waste trusts, 5) fixed trusts, and 6) permanent trusts......

Perpetual trusts may be "forever exempt from transfer tax", so it was not until around 1980 that the United States gradually allowed the creation of permanent trusts, but each state has different regulations, and only a dozen states currently allow the existence of such trusts. This is possible because there is also a possibility that this statute will be repealed by the government, after all, no statute is fixed, even the highest level of constitution. There is also the possibility of being modified!

In general, family trusts serve wealthy families with total assets of more than $200 million. But later on, many families used it very widely, and wealthy families also used this tool to plan their inheritance, and it gradually became touted by the world's wealthy.

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

Some people do it for the flexibility of their wealth. For example, Abel is very concerned about whether the family property can really be inherited by his descendants, and the ultimate purpose of doing charity is of course not for charity itself, but for tax avoidance! At this point, Abel did not shy away from putting forward his final requirements to his own legal team and accounting team led by Frank Austin.

Some people are segregated for the safety of their property. Most of the clients are the actual controllers of the enterprise. In practice, the property of enterprises and individuals cannot be clearly defined, and when enterprises face financial crises, personal assets often become the object of debt recovery. The trust assets exist independently, and their nominal ownership belongs to the trustee and is isolated from other assets of the settlor, trustee and beneficiary.

Therefore, any change in the settlor does not affect the existence of the trust assets, and the beneficiary obtains the benefits and management rights specified in the trust deed by enjoying the beneficiary rights of the trust (rather than the estate itself). In this way, on the one hand, the creditor has no right to recourse against the trust property (unless the trust property is illegally gained), which reduces the possible significant adverse impact of the business risk on the family wealth, and also prevents the settlor's family from squandering the wealth in a short period of time.

The most important thing is through a family trust. No one other than the beneficiary can fight for the estate through a court judgment, thus avoiding related legal disputes. Of course, to achieve this, you need to plan ahead, and it will be too late to set up a trust before the property is about to be recourse or frozen.

Using trust to avoid taxes and save taxes is also one of Abel's purposes. In fact, an important purpose of setting up a trust in the United States is to save taxes. This has led to different forms of trusts, including: QTs, which allow spousal succession to be tax-exempt and the settlor can change beneficiaries, QDOTS, which allows non-American spouses to inherit tax-exempt, and QPRT. The settlor is allowed to discount the value of the donated assets at the time of gift in order to enjoy tax benefits; Different types of trusts such as intergenerational transfer tax can be exempted.

There are also intergenerational trusts and family business succession, where the settlor of a family trust sets up a trust for the benefit of several generations, such as the Rockefeller family. In addition, for those with family businesses, it is more necessary to achieve efficient and stable family equity transfer and management during their lifetime, and try to avoid unnecessary changes in the equity structure to prevent unqualified shareholders from entering the enterprise due to equity inheritance.

"In the United States, many family businesses are managed by family trusts or held by them, which can ensure the control of the company by family members, achieve the stability of the shareholding structure, and eliminate unqualified shareholders. ”

"After the establishment of a family trust, the management and use of trust assets are carried out in the name of the trustee, and the settlor has no right or obligation to disclose the operation of the trust assets to the outside world except in special circumstances. When using a family trust, the property is transferred before the settlor's death, avoiding the process of probate. ”

Frank Austin introduced some of the situation of family trusts to Abel in a very easy-to-understand way, and some examples that exist today, and sometimes when he encounters a special noun that Abel does not understand, he uses an easy-to-understand ordinary analogy: "In fact, thanks to family trusts, at least half of the companies on the global Fortune 500 list still have a larger say in the descendants of their original founders, such as the Walton family, the Ford family, the Xingxing Li family, the LG family, the Carrefour Harley family, and so on!"

Abel nodded thoughtfully, then slowly exhaled and said with a smile: "This is another field that is completely unfamiliar to me, maybe it will be better for them to take a long time, and it can also be gifted to their grandchildren, and it will benefit them for a longer time!"

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

Abel replied slowly: "I want to customize a perpetual trust plan for each of my children, and the entrusted capital is one billion dollars per person!"

A billion dollars, tsk...... If the boss has a few more children in the future, it will be terrible for this kind of permanent trust fund alone.

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

"I want you to give me a professional advice!" Abel asked without answering.