Study On Application Of Life Insurance Trust In Estate Planning

In recent years, people’s private wealth has been gradually growing with the rapid development of the national economy, but the continued accumulation of wealth has caused the increasing inheritance problems. In daily life, people often provide economic security for the family through the purchase of life insurance. Life insurance and life insurance trust have gradually become the available estate planning tools for people. In life insurance trust, the insurance benefits from life insurance company is given to the trust institution for management, and the trust institution manages the benefits for the interests of the beneficiary according to the intentions of the trustor. Life insurance trust can fully guarantee the rights and interests of the insurance beneficiary, and make the insured’s heritage planning more perfect.Life insurance trust has a better development in Europe, the United States, Japan and China’s Taiwan region. But the product is not introduced in the mainland of China, and it is scarce on the study of its application in heritage planning. Therefore, this paper will draw lessons from the development experience of life insurance trust and its application in estate planning at home and abroad, and finally propose strategies for the application of life insurance trust in estate planning in the mainland of China, so as to make a little contribution to the research in this field in China mainland.The research mentality of this paper is as follows:The first chapter is the introduction part. It includes four parts:the background and significance of the research, literature review, the theoretical tools and research methods, and the possible innovations and subsequent research.The second chapter introduces the main concepts involved in this paper, and it includes the heritage and the life insurance trust system. The part of heritage introduces the meaning of heritage and its tax system; the part of life insurance trust system firstly introduces the definition and connotation of trust, and then describes the life insurance trust system from different angles of its meaning and background, operation mechanism, classification and applicable people.The third chapter firstly introduces various estate planning tools, including life insurance trust, wills, inheritance of appointment, trust, insurance and gifts. Because life insurance trust has been detailed in the previous chapter, this chapter will focus on the introduction of several other estate planning tools. Based on the introductions of heritage tax and life insurance trust system in the second chapter, this chapter finally compares the life insurance trust with several other estate planning tools to highlight the comparative advantages of application of life insurance trust system in estate planning.The fourth chapter mainly analyzes the application of life insurance trust in heritage planning at home and abroad, and chooses the United States and China’s Taiwan region as the study object. This chapter firstly expounds the development and operation of the life insurance trust system, and then illustrates application of life insurance trust in estate planning in the United States and Taiwan region through the case analysis.The fifth chapter is to analyze and forecast the market environment of the application of life insurance trust in estate planning in the mainland of China. First of all, the wealth management demand showed through relevant data and wealth report gives the potential market demand: secondly, this chapter analyzes the market environment of the implementation of inheritance tax system in the mainland of China from two aspects of the necessity and feasibility; Finally, this chapter analyzes the operator of life insurance trust, and this part contains two cases:trust company and the insurance company or bank in the mixed operation mode as the operator. And the advantages of each business environment are discussed in this part.The sixth chapter puts forward some strategies of the application of life insurance trust in estate planning in the mainland of China based on the analysis of the fifth chapter, including the way of strengthening the institutional basis while life insurance trust is applied to estate planning, China’s levy of inheritance tax strategies, and the system construction of each operation mode.The possible innovation points in this paper are as follows:Firstly, the operation mechanism of life insurance trust in the United States and Taiwan of China are compared systematically, and it provides good reference for mainland of China in these aspects of estate planning, Chinese family wealth transferring and wealth management of high net worth clients after the levy of the inheritance tax.Secondly, application of life insurance trust in estate planning will eventually focus on the operation of life insurance trust. This paper shows that the separated operation and mixed operation have their own advantages through the analysis of the market environment of the trust industry, the insurance industry and the banking industry. And the mainland of China can choose the appropriate business model through optimizing relevant policy systems.Thirdly, in order to make the aim of application of life insurance trust in estate planning come true more easily, the mainland of China needs to start from the way of strengthening the institutional basis, the imposition of estate tax and the system construction of each operation mode, and finally creates a good system environment.The deficiencies in this paper: Because the subject is new, this paper mainly studies the life insurance trust system in other countries and regions, combined with case analysis to develop train of thought. It is still not deep enough in the last part of the writing on the design of strategies, and it focuses on the theory analysis, so these deficiencies still need further study and research to make up for.