In order to carry out professional management and application, protect the interests of beneficiaries and avoid the division and occupation of property.
No matter divorce, property division, accidental death or debt collection, you can sit back and relax. Some time ago, the movie "The Richest Man in Xihong City" made fans feel what a trust fund is.
The fund was established by signing the trust deed and includes the following roles.
Fund founder: Generally speaking, the role of fund founder is mostly played by accountants or lawyers.
Fund manager: responsible for managing the income and distribution of the fund and holding its assets on behalf of the fund, which can be held by companies or individuals.
Designater: the manager who has the right to appoint or remove the fund.
Beneficiary: the designated person who can enjoy the fund income.
The characteristics and advantages of family trust funds are as follows.
The assets of the family trust fund are held by the fund manager, and there is no independent natural person in the legal sense. It is a freely distributable fund, and the amount and proportion of each allocation do not need to be consistent.
The income of family trust funds is allowed to be distributed among beneficiaries at will without paying too much tax. If there is a loss, it can be carried forward to the next year and deducted from the profits afterwards. In most cases, the loss of the trust fund will not affect the personal assets of the beneficiary, and the personal loss of the beneficiary will not affect the assets of the trust fund.
A family trust fund is valid for 80 years, and will not retain the income, but distribute all the income to the beneficiaries reasonably, and the beneficiaries will declare their personal income tax by themselves.
If properly used, family trust funds can achieve the functions of reasonable tax avoidance and asset protection.