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Prenuptial Asset Protection Trust: Safeguarding Both Marriage and Wealth
Ms. Jiang, 40 years old, had been working for many years before getting married.
She had accumulated a certain amount of wealth, including RMB 300,000 in savings, a car worth RMB 200,000, and a property she purchased before marriage (valued at RMB 1,000,000).
Although she had a good relationship with her fiancé, she was mindful of the potential financial risks within a marriage.
She was particularly concerned that her premarital assets could become commingled with marital property, leading to uncertainty over asset ownership.
To protect her premarital wealth, Ms. Jiang decided to establish a Prenuptial Asset Protection Trust.
Ms. Jiang signed an agreement with a trust institution,
transferring her premarital savings, car, and property into the trust.
The trust terms clearly stated that the trust assets and all related income would remain solely under Ms. Jiang’s ownership,
strictly separated from any marital or joint property.
During the marriage, Ms. Jiang retained full control and beneficial rights over the trust assets.
The trustee would manage and operate the assets according to Ms. Jiang’s instructions.
In the event of changes in the marital relationship, the trust assets would be handled according to the agreed terms,
ensuring her premarital assets would not be subject to division.
By using a Family Trust, she effectively shielded her assets from potential marital impact.
Using a Prenuptial Asset Protection Trust to Isolate and Secure Wealth
Through the establishment of a Prenuptial Asset Protection Trust,
Ms. Jiang successfully separated her premarital assets from post-marital joint property,
avoiding disputes over ownership during the marriage.
Even if the marriage encounters future challenges,
her premarital assets will remain fully protected,
safeguarding her personal wealth
and providing her with a greater sense of security within the marriage.
