Trust Schemes Of Family Wealth Inheritance

With rapid growth of Chinese economy, there are more and more high net worth individuals, which provides market potential for family wealth management and succession. It is predicted by Hurun Research Institute that there will be more than 1.21 million people possessing more than 10 million in 3 years, while the population will reach 73,000 owning 10 million. According to China Report on Family Business, the next decade will see the largest succession in the future with 5 to 7 trillion. On this issue, vast research literature show obvious advantages of family trust.There are large distinctions between domestic and foreign family trusts. The former are still at initial stage and focus on currency assets. Meanwhile, the latter have brought equity and real estate into plan, which utilizing independence and isolation of trust property.There are some innovations in this paper. Firstly, stocks, real-estate and works of art have been placed into family trust. Secondly, this paper designed a concrete scheme and trust clauses, introducing a real case with family members, assets and demands. Thirdly, forecast and analysis of cash flow will be put forward to discuss scheme practicability.Finally, the rationality and feasibility have been discussed. According to Trust Law and Property Law, there are basic support for family trust. However, there are also some barriers to popularize family trust.