【Asset Protection Trust: A “Safe Harbor” for Entrepreneurs’ Wealth】

Mr. Liu is the owner of a construction engineering company and has been working in the industry for many years.

As the business continues to expand, the construction industry faces many uncertainties,

such as long project payment cycles, large fluctuations in raw material prices, and frequent changes in policies and regulations,

resulting in high operational risks for the business.

At the same time, Mr. Liu's personal and family assets are somewhat commingled with his business assets.

He is worried that if the business performs poorly, his personal and family wealth will be severely impacted.

In order to protect his family's financial security and effectively separate his business and personal assets,

Mr. Liu decided to establish an asset protection trust.

Mr. Liu had in-depth discussions with a professional trust institution,

and transferred part of his real estate, financial assets, and a portion of his company shares into the trust.

Based on Mr. Liu’s needs, the trust institution formulated detailed trust terms,

clearly defining the scope of trust assets and stipulating that the trust assets are independent from Mr. Liu’s personal and business assets.

In the event of a business debt crisis or other risks, the trust assets remain unaffected.

At the same time, Mr. Liu designated his spouse and children as the beneficiaries,

ensuring that family members can benefit from the trust assets during the trust’s duration.

Through the use of a Family Trust, he achieved a clear separation between business and personal assets

By establishing a family trust, he successfully separated his business assets from his family wealth,

effectively shielding his family from the impact of business risks,

safeguarding the living standards and future development of family members from being affected by the company's performance,

and laying a solid foundation for the inheritance of family wealth.

Clearly distinguishing business and personal assets

Allows trust assets to be legally independent from business and personal assets.

When the company encounters debt disputes, bankruptcy liquidation, or other risks,

the trust assets cannot be claimed by creditors,

thus providing a secure barrier for family wealth.