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Education Protection Trust for Children
Case Study: Children’s Education Trust — Securing Growth Through Structured Incentives
Mr. Wang, a senior corporate executive, has a son in high school and a daughter about to graduate from university.
Concerned about their lack of financial planning skills and eager to motivate them to be proactive, he established a Children’s Education Trust.
He placed NT$20 million in cash and an apartment in a top school district into the trust.
The trust terms specify the following:
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Once his son is admitted to university, tuition and living expenses will be paid annually.
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If he gains admission to a top 100 global university, he will receive an additional NT$500,000 as a reward.
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If his daughter pursues a master’s degree, the trust will provide NT$300,000 per year as research funding.
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Upon graduation, either child may apply for up to NT$5 million in seed funding for a startup, contingent upon submitting a business plan and passing third-party evaluation.
To prevent irresponsible spending, a monthly allowance of NT$20,000 is issued with spending limits in place.
Exceeding the cap triggers a three-month freeze of further disbursements.
A supervisory committee—comprising senior family members, a lawyer, and an accountant—was formed to review fund usage quarterly, ensuring that all education-related funds are properly utilized.
Empowering Children Through a Family Trust
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Ensures educational funds are used exclusively for their intended purpose
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Motivates children to pursue academic and professional excellence
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Incorporates third-party oversight to safeguard financial security
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Provides long-term value growth, supporting children throughout their development journey
