【Midlife Family Elderly Care Protection Trust】

Ms. Liu, a corporate manager at a foreign enterprise, lives with her husband.
They support both sets of elderly parents and have one child.
Their family assets include a private residence (valued at RMB 7 million)
and RMB 5 million in financial assets.
They are concerned that as their parents age,
medical and long-term care expenses may increase,
especially since the parents' pensions only cover daily living costs.
Given their busy work schedules, they may not always be able to manage funds promptly.
They hope to set aside a dedicated reserve for elder care,
ensuring funds are available in case of illness,
without affecting the financial needs of their nuclear family.

Ms. Liu and her husband injected RMB 2 million of their financial assets into a family trust,
while retaining the private residence and RMB 3 million in liquid funds for household use.
The trust terms specify:
– The funds are invested in low-risk financial products with an annualized return of 3.5%.
– The approximate annual yield of RMB 70,000 is automatically transferred to a senior care account managed by Ms. Liu’s mother.
– In the event of medical expenses (out-of-pocket portion), reimbursement can be requested from the trust with supporting receipts (capped at RMB 100,000 per incident).
– If a caregiver is needed, an additional RMB 5,000 per month may be drawn from the trust principal to cover care expenses.
– After both parents pass away, the remaining trust assets will be allocated as an education fund for their son.

✅ A Family Trust Enables Stable, Intergenerational Elder Care Support

Independent Elder-Care Fund Reserve
The trust assets are separated from daily household finances,
ensuring they are exclusively dedicated to the care of aging parents and not diverted elsewhere.

Clearly Defined Payment Scenarios
Covers core needs including routine support, medical costs, and long-term care,
with clear usage rules and oversight.

Reduced Pressure for the Sandwich Generation
No need for frequent manual transfers or active fund management—
the trust operates automatically, balancing caregiving responsibilities with work and personal life.