【Cross-Border Real Estate Inheritance Trust: A “Compliance Bridge” for Overseas Assets】

Mr. Yu purchased a residential property in Sydney, Australia years ago (valued at approximately RMB 8 million).
He plans to pass it on to his son, who now resides in Australia.
However, he is concerned about the complexities of cross-border inheritance tax (in some Australian states, estate tax can reach as high as 40%) and the legal procedures involved.
He also wishes to retain the right to use the property during his lifetime, and avoid complications in asset handling in the event of illness.

Mr. Yu established a real estate inheritance trust through a licensed cross-border trust institution.
He transferred ownership of the Sydney property into the trust while retaining the lifelong right to reside there.
The trust terms clearly state that during the trust’s term, any rental income from the property should be prioritized for covering Mr. Yu’s medical and living expenses in Australia.
Upon his passing, the property ownership will automatically transfer to his son.
Due to the trust’s structure, Mr. Yu can legally avoid approximately RMB 3.2 million in Australian estate tax.
In case of sudden illness, the trustee is authorized to manage the rental or mortgage of the property as per pre-agreed instructions.
The trust also stipulates that the son must take responsibility for property maintenance—otherwise, his share of the income will be restricted.

Through the use of a family trust, Mr. Yu was able to achieve efficient cross-border wealth transfer.

Tax Compliance Optimization:
Leverage the trust structure to legally reduce cross-border estate tax burdens and ensure complete asset inheritance.

Unified Rights and Obligations:
While safeguarding the interests of the settlor, the trust also uses terms to hold the heir accountable and prevent mismanagement of assets.