【Educational and Career Guidance Trust】

Mr. Zhao’s son has just graduated from university. He tends to be lazy, lacks clear career planning, and comes from a family with RMB 6 million in financial assets. Mr. Zhao hopes to use financial incentives to encourage his son to focus on academics and build professional skills, avoiding the risk of complacency due to a comfortable family background. At the same time, he wants to ensure that the funds are used for his son’s growth, rather than squandered.

Mr. Zhao injected RMB 3 million into a trust while retaining the other RMB 3 million for flexible personal use. The trust terms specify:

• During university, if his son maintains passing grades with no failed courses, he can receive RMB 20,000 in living expenses per semester;

• If he receives a scholarship, he will be awarded a matching bonus at a 1:1 ratio (capped at RMB 10,000 per award);

• After graduation and starting a job, he can receive a RMB 50,000 career start-up allowance (for housing and work attire);

• After three years of employment, if awarded “Outstanding Employee” by his company, he will receive a RMB 200,000 housing subsidy;

• If he starts a business before the age of 30 (with a viable business plan submitted), he may apply for RMB 500,000 in entrepreneurial support;

• Any remaining funds can be withdrawn in full after the age of 35.

By using a family trust, Mr. Zhao has created a positive incentive system for his son.

• Behavioral guidance mechanism:
  Linking fund disbursement to academic performance and professional development, using incentives instead of lectures.

• Growth-stage alignment:
  Incentives are aligned with life stages — “university, employment, entrepreneurship” — supporting natural personal development.

• Risk control:
  Prevents reckless spending through lump-sum payments, and cultivates a sense of responsibility by requiring goal-based withdrawals.