Abel's idea was.

The charitable foundation's tax avoidance program must be carried out, which is a certain fact. If you don't do this, think about paying so much money to the federal government every year. It's a bit heartbreaking to think about it, but there are even more terrifying inheritance taxes and gift taxes.

However, in addition to the charitable foundation, Abel is also preparing to establish another trust fund. The charitable foundation will serve as a control company of Abel's company in the future, but is preparing to cut out another part of the income and serve as a family asset trust fund alone.

Later, there were his children and later his women, so they received a fixed income from the family trust fund every year.

His tentative plan is 20 years, because only after 20 years will his children gradually become adults!

He expressed his thoughts to Frank Austin. After thinking about it for a while, he replied softly: "Boss, although the twenty-year trust plan is very long, for the period set up in most countries or regions, twenty years are actually very short! This means that if you want to transfer the trust assets to your child after he becomes an adult, you still need to pay gift tax..."

"Uh..." Abel was slightly stunned, "It's true! Is twenty years still short? Is it so long and I have to pay taxes."

The barrister smiled and said, "Depending on the type of trust, different contracts, and different periods, different trust combinations can be formed! If you want to avoid paying gift tax, you can only be a permanent trust. If there is still a twenty-year term setting, I am afraid that only a few places such as Travis in the federal territory can choose from! Under the same conditions, Hong Kong in China is 80 years, Cayman Islands is 150 years, British Virgin Islands is 100 years, and Jersey is 100 years... There is a very complicated setting here!"

When the principal and the principal make a contract, they can flexibly customize various relevant regulations, resulting in different types of family trusts, which are roughly divided into six types: one, revocable trust; two, irrevocable trust; three, full-righted trust; four, wasteful trust; five, fixed trust; six, permanent trust...

Permanent trusts may be "forever exempt from transfer taxes", so it was not until around 1980 that the United States gradually allowed the establishment of permanent trusts, but each state's regulations were different. Currently, only a dozen states allowed the existence of such trusts. The reason is possible is that this regulation also has the possibility of being abolished by the government. After all, no regulation is fixed, even the highest level constitution will have the possibility of being amended!

Generally speaking, family trusts serve wealthy families with total assets of more than 200 million US dollars. However, many families later used them very widely. Generally, wealthy families also used this tool to plan and inherit property, and later they gradually gained praise from wealthy people all over the world.

Generally speaking, the reasons why wealthy people set up family trusts are different.

Some people are flexibly inheriting wealth. For example, Abel cares very much about whether the family's property can be truly inherited by his descendants. The ultimate goal of doing charity is of course not for charity itself, but for tax avoidance! In this regard, Abel made his final request to his legal team and accounting team led by Frank Austin without any hesitation.

Some people are isolated for the sake of property safety. Most of the principals are the actual controllers of the enterprise. In real operations, the property of the enterprise and individual cannot be clearly defined. When the enterprise faces a financial crisis, personal assets often become the object of debt recovery. Trust assets exist independently, and their nominal ownership belongs to the trustee, other property of the principal, trustee, and beneficiary.

Therefore, any changes in the principal do not affect the existence of the trust assets. The beneficiary obtains benefits and management authority designated by the trust documents by enjoying the right to benefit the trust (rather than the inheritance itself). On the one hand, the creditor has no right to pursue the trust property (unless the trust property is illegal income), reducing the business operation risks may have a significant adverse impact on family wealth; in addition, the principal's family avoids squandering the wealth in the short term.

The most important thing is to use a family trust. Others other than the beneficiaries cannot compete for the inheritance through court judgments, thereby avoiding relevant legal disputes. Of course, to achieve this goal, it is necessary to plan in advance, and it will be too late to establish a trust before the property is to be retrieved or frozen.

Using trusts to avoid taxes is also one of Abel's goals. In fact, the important purpose of establishing a trust in the United States is to save taxes. This has resulted in different forms of trust, including: qtips, which allows the spouse to be exempted from tax when inherited, and the principal can also change the beneficiary; qdots, which allows non-American spouses to be exempted from tax when inherited; qprt. It allows the principal to discount the assets they donated to enjoy tax benefits when gifted, and gst. It can be exempted from cross-generation transfer tax and other types of trusts.

There are also cross-generation trusts and family business inheritances. Family trust principals set up trusts for the interests of several generations, such as the Rockefeller family. In addition, for people with family businesses, it is necessary to achieve efficient and stable family equity transfer and management in their lifetime, and try to avoid unnecessary changes in equity structures to prevent unqualified shareholders from entering the enterprise due to equity inheritance.

"In the United States, many family businesses are managed or held by family trusts, which can ensure family members' control over the company, achieve stability of the equity structure, and eliminate unqualified shareholders; at the same time, external managers who are of great help to the development of the company are introduced to manage corporate affairs and realize the long-lasting foundation of the family business."

"After the establishment of a family trust, the management and use of trust assets are carried out in the name of the trustee. Except for special circumstances, the principal has no right or obligation to disclose the operation of the trust assets to the outside world. When using a family trust, the property has been transferred before the principal dies, avoiding the process of inheritance certification."

Frank Austin introduced some situations of family trusts to Abel in a very easy-to-understand way, and some examples that exist today. Sometimes when encountering special terms that Abel cannot understand, they use easy-to-understand ordinary analogies: "In fact, benefiting from family trusts, at least half of the companies on the Global Fortune 500 rankings, the descendants of their original founders still have a greater say, such as the Walton family, Ford family, Xingxing Li family, LG furniture family, Carrefour's Harley family, etc."

Abel nodded thoughtfully, then slowly let out a breath and smiled, "This is another realm that is completely unfamiliar to me. It may be better for them to go longer, and it can also give gifts to their grandchildren and benefit even longer!"

"Does the boss have any requirements for this trust plan?" asked Frank Austin.

Abel slowly replied: "I hope to customize a permanent trust plan for each of my children, and the commission funds are one billion dollars per person!"

One billion US dollars, tsk... a rich man! If the boss gives birth to a few more in the future, then this kind of permanent trust fund would be terrible.

Frank Austin pondered for a moment and asked: "The trust plan will be designed by the group and then the trustee committee will be formed. Or will it be handed over directly to the third-party trustee?"
Chapter completed!