Case Study 3: Family Asset Protection Plan

Introduction:

    Mr. Li, a 75-year-old retired entrepreneur, hails from an affluent family with multiple businesses and substantial assets. With numerous family members and high asset valuations, Mr. Li faces an increasing number of risks and challenges. In recent years, his health has been deteriorating, leading him to decide to entrust his wealth and businesses, amassed over many years, to a professional institution.

 

Key Elements of the Trust Plan:

1. Family Members' Entrustment: Family members entrust their assets to a trust fund managed and protected by professional trust administrators to ensure asset security.
2. Personnel Arrangement: Establishing a trust committee composed of family members and professional trust administrators responsible for supervising and managing the trust fund, as well as formulating decisions and policies.
3. Asset Allocation: The trust fund reasonably distributes and invests assets according to rules and plans predetermined by family members, ensuring the appreciation and stability of family wealth.
4. Risk Management: The trust plan establishes a risk management committee responsible for assessing and managing various potential risks and formulating corresponding risk control measures.
5. Family Education: The trust plan considers the education of family members and enhances their awareness and capabilities in financial management and asset protection through training and workshops.

 

Setting up a family trust ensures the sustainability of family wealth:

• By establishing a trust fund and instituting a professional management institution, family wealth is safeguarded for generations, ensuring its continued growth.
• Through prudent asset allocation, risk management, and family education, this plan helps the Li family achieve long-term and stable asset protection objectives.

 

Highlighted Features:

1. Professional Management: The trust plan is managed by professional trust administrators and committees, ensuring the professional management and protection of assets.
2. Long-Term Stability: The trust plan's establishment and design aim to achieve long-term, stable asset growth, ensuring the well-being and development of future generations.
3. Risk Management: The trust plan sets up a risk management committee dedicated to assessing and managing various potential risks, and reducing losses in family wealth.
4. Family Education: The trust plan places importance on the education of family members, enhancing their financial management and asset protection capabilities through training and workshops.

 

    If you have a large number of family members and are considering establishing a similar trust plan, professional management and planning can help protect family wealth and achieve long-term, stable asset growth.