Recently, the news that the former chairman of a food company in Shenzhen (Jiang Yuanchen) was rescued by volunteers in Shenzhen was wandering and scavenging for waste has received widespread attention from netizens.
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After careful understanding, I learned that Jiang Yuanchen opened a clothing company in Yantai in the early years, and then went to Hong Kong to work hard and founded the Hong Kong Shenglong Group; and then went to Shenzhen to develop and established Shenzhen Shenglongfa Food Industry Co., Ltd.
At its peak, he had more than a thousand employees, assets of more than 100 million yuan, and served as chairman of three food companies.
In the comment area, a number of netizens said that they had dealt with Jiang Yuanchen.
A netizen said: "I met him seven or eight years ago and helped him sell some soba noodles and horse milk wine, but then the goods were not easy to sell and there was no contact." ”
Another netizen also told reporters that in 2009, he had worked in Jiang Yuanchen's factory in Shenzhen, and he praised Jiang Yuanchen for coming to the factory several times a month, and often gave meals to employees, which was a good boss.
Why do multimillionaires end up in such a situation?
Jiang Yuanchen said that in order to expand his business, he borrowed money from the bank, but because the supplier owed money, the capital chain was broken, and he could not repay the loan, and was eventually forced to go bankrupt.
After bankruptcy, he wanted to go back to Shenzhen to make a comeback, but the result was not satisfactory, and he eventually fell into the streets and made a living as a stray scavenger.
Life is impermanent, no one can predict what will happen tomorrow, even if it is a billionaire, it is difficult to ensure a lifetime of wealth.
In fact, many celebrities and entrepreneurs now plan their risks in advance and prepare for the future, and most of them use the family trust fund in insurance.
What is a Family Trust?
Family trust funds, that is, the establishment of a trust fund for the assets of the family, can specify that the funds will be invested in different categories, such as stocks, bonds and even real estate projects, etc., can also stipulate the annual target rate of return, determine when and in what form the beneficiaries of the trust fund can receive living expenses, education expenses or medical expenses.
What is the role of the Family Trust?
01 Constrain descendants
The establishment of family trusts has different purposes, one is to protect the future life of the family, the folk often say that the rich are not more than three generations, tens of millions of family wealth in the hands of the next generation, it is likely to be wiped out in an instant.
In order to avoid this situation, many people choose to set up family trust funds, assets are managed by professionals, waiting for children to mature and then returning, or stipulating that children only receive basic living expenses.
For example, the famous Hong Kong movie star Shen Dianxia, because of her daughter's young age, feared that she would squander her property at will, set up a trust with tens of millions of yuan of inheritance, stipulating that her daughter Zheng Xinyi received a certain amount of living expenses every month, and could obtain a certain proportion of assets when she got married, and could not inherit all the property until she was 35 years old.
02 Property distribution
Another classic example is Mei Yanfang's heritage treatment. Mei Yanfang set up a trust to protect the distribution of assets, first of all, her mother can receive a certain amount of living expenses every month until her death; the other is that her nephew and niece can receive an education fund for them to complete their studies.
Such an arrangement not only protects the mother's life and the education of the younger generations, but also cuts off her brother's financial path to swallow the assets through his mother.
03Evading inheritance tax
As a tool to avoid high inheritance taxes, once the property is packaged into a family trust, it means that the family members lose their legal ownership of it and do not have to pay high inheritance tax in the future.
For example, before the death of the founder of the Pritzker family, he transferred more than a billion dollars worth of family property to a number of offshore trusts, leaving only $25,000 in property, and eventually paid $53.2 million in taxes to the government, and only $9.5 million in taxes and interest.
04 Property isolation
As mentioned in the previous episode of the hit drama "Xiao Minjia": Insurance is far more powerful than you think, Li Ping (Qin Hailu) was confiscated because of the bankruptcy of her husband Hong Wei, and as a co-holder of family assets, she was also greatly affected, and overnight, the previous struggle was in vain.
When you heard a clear reply from the staff: "You can rest assured that when you set up the insurance fund family trust at that time, your financial situation was very good, and the source of funds was also legal." Li Ping's mood at that moment was relieved.
In summary, family trusts can achieve "asset preservation, special funds, and sustainable value", so that the wealth inheritance is stable and orderly, for high-net-worth families, the establishment of family trusts is a "precautionary" thing, the sooner the better.
The trust fund is only a part of the insurance, and the more important significance of insurance is that it can transfer risks, alleviate economic pressure, maintain dignity in the event of an accident or a major accident, and is the last line of defense that can make our happy life all not collapse.