100 Questions and 100 Answers Issue 20 What is a Family Protection Trust?

Mondo Finance Updated on 2024-01-29

oneWhat is a Family Protection Trust?

A:A family protection trust is a trust established for the purpose of ensuring the livelihood of family members. In practice, it is usually used in the following situations:

1. Dependency Trust:A trust established for the purpose of raising minors and mentally handicapped family members.

2. Maintenance Trust:A trust established for the purpose of supporting an elderly family elder.

3. Marriage Protection Trust:A trust established for the purpose of protecting the matrimonial property of family members.

4. Living Subsidy Trust:A trust established for the purpose of providing living support to family members.

IIWhat is a Family Growth Trust?

A:A family growth trust is a trust established for the purpose of promoting, encouraging and guiding the growth of family members. Family growth trusts in a broad sense also include employee benefit trusts established for the benefit of employees of family enterprises, including enterprise annuity trusts, employee stock ownership trusts, profit sharing trusts, management stock ownership trusts, executive protection trusts, etc.

IIIPersonalized inheritance design of family trust

A:Family trusts can realize some of the settlor's personalized needs by adding conditions to the trust property distribution plan. For example: 1. As beneficiaries, children regularly receive income from the distribution of family trusts, and provide special support for young sons, such as education funds and marriage funds. 2. When the children are married separately, they can receive a certain amount of income distribution from the trust on a regular basis, and designate it as personal property, which has nothing to do with the spouse. 3. If the children start a business, the family trust can provide a certain amount of funds as the start-up fund. We have conducted in-depth research on the pain points and difficulties of family wealth inheritance, analyzed the diversity and complexity of trust issues, and conducted in-depth interpretations on the establishment of family trusts, the optimization of family trust plans, and the inheritance of family industries.

FourthHow to distribute the property of the family trust?

A:1. Guarantee daily living expenses: living allowance, maintenance fund, pension, home purchase fund;

2. Guide life to continue to improve: education funds, education encouragement funds, and entrepreneurship funds

3. Promote family prosperity and harmony: wedding and maternity funds

4. Protection and rescue of whales in difficulty: medical funds, emergency relief funds.

FiveHow to agree on the distribution of trust benefits?

A:The method of distribution of trust benefits is stipulated in the Trust Contract and the Trust Interest Distribution Plan, and the specific terms can be finalized by the cooperating parties, and the Trust Interest Distribution Plan must be signed by the settlor to ensure that the distribution of trust benefits is in line with the wishes of the settlor. When the value of the policy and other property of the trust under the trust is less than 1 million yuan, the trust will be terminated and liquidated in advance, and the trust company will distribute all the trust property, including the insurance policy, to the beneficiary in a lump sum according to the distribution ratio agreed upon at the time of liquidation of the trust contract.

SixWho has the right to change the Trust Interest Plan?

Answer: The terms of change of trust interests stipulate:

1. If the settlor has full capacity for civil conduct, the settlor has the right to change the trust benefit distribution plan.

2. If the settlor has passed away or lost full civil capacity, but there is a supervisor and the supervisor has full civil capacity, the supervisor may change the trust benefit distribution plan under the authorization of the settlor.

3. If the settlor has passed away or lost full civil capacity, and there is no supervisor or the supervisor has lost full civil capacity, the trustee can decide whether to change the trust benefit distribution plan according to the provisions of the trust contract. At the same time, if the trust benefit distribution plan is changed, it will not affect the trust benefits already obtained by any beneficiary.

Editor|Ao Bin Lu Beibei.

Design|Jiang Jitao.

Audit|Tang Haifeng.

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