【Asset Protection Trust: A “Shield” for Family Wealth During Corporate Crises】

Mr. Lin is the head of a construction engineering company with considerable influence in the industry.
However, the construction sector is highly competitive, with long capital turnover cycles and multiple risks such as material price fluctuations and policy shifts.

Mr. Lin understands that running a business is like walking on thin ice — a debt crisis could easily implicate his personal and family assets.
To protect his family’s quality of life from business risks and to build a solid financial foundation for his children’s future, Mr. Lin decided to establish an asset protection trust.

Mr. Lin transferred two personal properties (worth approximately RMB 8 million or TWD 36 million), RMB 3 million (TWD 13.5 million) in financial assets, and a portion of his company shares (valued at RMB 5 million or TWD 22.5 million) into the trust.

The trust institution developed strict trust terms based on Mr. Lin’s needs, clearly stating that the trust assets are separate from his personal and business assets. As such, business creditors have no right to pursue claims against the trust.
The trustee will manage the trust assets prudently to ensure preservation and growth, and has designated Mr. Lin’s spouse and children as beneficiaries.

The trust includes a staged distribution plan based on the children's life stages—for example, during schooling years, they will receive fixed monthly allowances for education and living expenses, and after reaching adulthood, they will gradually gain greater control over the trust assets.

Using a Family Trust to Preserve and Grow Both Business and Personal Wealth

・Through the establishment of the trust, assets managed by the trustee achieved stable growth, providing strong financial support to the family during times of crisis and preserving the potential for future business restructuring.
・By using a legal structure to clearly separate business and family assets, the trust effectively blocks corporate debt risks from affecting the family, safeguarding family wealth.