Family trusts and insurance fund trusts are both trust businesses, and in recent years, the increasing demand of high-net-worth individuals has made them develop rapidly, which is also an important direction for the transformation of trust business. However, from the current industry practice, there is a common problem of confusing the family trust business with the insurance fund trust business, and some people even think that the insurance fund trust belongs to the family trust category. In fact, there are many differences between insurance fund trusts and family trusts, which are mainly reflected in the following five aspects:
01. The subject matter of the trust property is different
The trust property of an insurance premium trust is the right to claim insurance benefits. At present, the types of insurance commonly used in the market to establish insurance fund trusts are whole life insurance and large annuity insurance, and trusts are established with different insurance premium claims, and the value and determination of the trust property need to be determined according to different types of insurance. The form of trust property of family trusts is relatively rich, and the mainstream in the market is financial assets such as monetary funds, asset management products, insurance policies and corresponding rights. At present, more and more high-net-worth individuals choose family trusts for family wealth inheritance planning, and their needs are gradually diversified, and the entrusted property is diversified.
02. The regulatory requirements for setting thresholds are different
Family trusts have clear requirements for the establishment of scale in terms of regulation. The amount or value of family trust property is not less than 10 million yuan. However, during the existence of the trust, the value of the trust property is not required to be less than RMB10 million at any point in time, and the restriction on the amount or value of the trust property that may trigger the termination clause of the trust shall be subject to the content of the terms agreed upon by the parties to the contract.
Insurance fund trusts do not have special restrictions on the scale of establishment in terms of supervision, but they still need to meet the trust property scale requirements of general trusts. At present, the insurance fund trust operated in industry practice usually has a trust scale threshold higher than RMB1 million to meet the needs of future wealth management and inheritance.
03. The setting requirements of the trust parties are different
The regulatory requirements for family trust parties are relatively clear. First, in terms of the settlor, it is clarified that the settlor of the family trust can be a single person or a family; second, in the relationship between the settlor and the beneficiary, the family trust takes the protection, inheritance and management of family wealth as the main trust purpose; third, in terms of the setting requirements of the beneficiary, the settlor cannot be the sole beneficiary, which clarifies that the family trust cannot become a self-interest trust.
In addition to meeting the legal and regulatory requirements related to the trust, the establishment of the relevant parties to the insurance fund trust also needs to be restricted by the insurance law and the insurance contract. First, the interest relationship between the parties to the insurance fund trust; the second is the role of the trustee in the insurance contract; the third is according to the insurance contract; the fourth is that in the insurance fund trust established with whole life insurance, the insured cannot become the beneficiary corresponding to the part of the trust property; fifth, unlike the family trust, the insurance fund trust can be a self-interest trust.
04. The characteristics of the management and application of trust property are different
The stage of management and application of the trust property of the insurance fund trust is different from other trust products, and there are three aspects that need to be paid attention to. The first is information disclosure; the second is the process requirements for the claim funds to enter the trust special account; the third is the trust property management requirements after the claim funds have arrived.
The management, use and disposal of the trust property by the family trust begins after the establishment of the trust and the completion of the confirmation procedures for the transfer of the corresponding assets to the trust. However, the characteristics of family trusts put forward higher requirements for the corresponding management and application: first, the customer's requirements for the management risks of trust property; second, the liquidity requirements for the distribution of family trust benefits; and third, family trusts have professional requirements for the management of non-monetary property.
05. The business of insurance fund trust and family trust intersects
In practice, there is still an overlap between the insurance fund trust business and the family trust business. On the one hand, for insurance fund trusts with a trust size of more than 10 million yuan, they can be set up as family trusts, or insurance policies and other properties can be placed together in a family trust.
On the other hand, after the establishment of the family trust, the trustee of the family trust can be insured as the insured, that is, the 3.0 model of the insurance fund trust.
As a high-end investment and financing consulting service platform, Zangyuanhui provides a variety of professional management consulting and operation services for high-net-worth individuals, including: lawyers, certified public accountants, investment management and other independent trust entities, creating value for customers and providing efficient and honest professional services.