Case Study
Generational Inheritance - A Prosperous Family with Many Descendants
Introduction:
In this case, we examine the situation of Mr. Jiang, a 70-year-old retired entrepreneur. Mr. Jiang is now in the twilight of his life, and his greatest hope is to see his family prosper with many descendants. While many of his friends already have four generations living together, Mr. Jiang's own grandchildren have reached a marriageable age but are yet to marry, causing him great distress.
Case Details:
We recommend that Mr. Jiang establish a family trust with corresponding incentive schemes to encourage his descendants to have children. The trust would have no expiration date, ensuring generational continuity. In each generation, eligible bloodline descendants who meet the criteria for having children would become beneficiaries of the family trust. They would receive a fixed annual income of 300,000 CNY for their living expenses. Additionally, their parents would receive a one-time 1,000,000 CNY as an incentive for having children.
Encouraging Descendants through the Incentive Scheme of a Family Trust:
- The establishment of a trust incentive scheme encourages Mr. Jiang's descendants to actively marry and have children, ultimately achieving the goal of a prosperous, multigenerational family and perpetual inheritance.
- During the trust period, trust managers would invest the trust assets or fund income, ensuring the growth of the funds.
Highlighted Features:
- Legal Protection: Family trusts benefit from legal protection to prevent property erosion.
- Risk Isolation: Trusts effectively guard against asset custody risks.
- Succession Planning: Setting up a family trust before marriage can offer robust support for family wealth inheritance. By defining beneficiaries, welfare distribution methods, and other provisions, it ensures the smooth transfer of family wealth across multiple generations and promotes long-term family development.
If you wish to encourage your family members and plan for generational prosperity, we invite you to contact a trust advisor to create a tailored trust incentive scheme.
