【Wealth Planning Trusts for Blended Families: A Balancer of Love and Responsibility】

Mr. Chan has a son from his previous marriage (now an adult) and a 15-year-old daughter with his current wife.
He operates a small trading company and has accumulated a certain level of wealth, primarily in the form of company shares and some real estate.

Mr. Chan wishes to secure the livelihood of his current wife and underage daughter, while also making appropriate arrangements for his son from the previous marriage. He hopes to avoid future family disputes that may arise from inheritance issues.

To balance the interests and responsibilities among family members, Mr. Chan established a wealth planning trust tailored for blended families.
He transferred one investment property under his name (valued at approximately RMB 4.5 million) and RMB 3 million in financial assets into the trust.

The trust terms were carefully designed by his lawyer:

• The income generated from the trust assets is to be used primarily to cover the daily living and educational expenses of his current wife and underage daughter.

• When his daughter reaches the age of 25, she will be entitled to a one-time distribution of 30% of the trust principal, which can be used for marriage or starting a business.

• During the lifetime of his current wife, she will continue to benefit from the trust income to support her living expenses.

• Upon Mr. Chan’s passing, the remaining 70% of the trust principal will be equally distributed between his son from the previous marriage and his current wife (or to the daughter if the wife has passed away).

• It is clearly stipulated that the company shares are excluded from the trust and will be inherited and operated by his son.

Ensuring Harmonious Wealth Succession through Family Trusts

Clear delineation of beneficiary rights:
Through the detailed trust provisions, each family member's entitlements and distribution proportions are clearly defined at different life stages, effectively minimizing potential inheritance disputes.

Protecting the legal rights of all parties:
The trust structure ensures the legitimate rights of the current spouse, underage daughter, and the child from the previous marriage are respected and preserved.

Separation and protection mechanism:
By separating core assets—such as company shares—from trust assets, the trust preserves business continuity while providing stable financial support to family members who need cash flow.