Family asset protection, succession and cross-border age integrated offshore trust structure establishing services

Service introduction:

The offshore family trust structure is an organic system composed of family trust as the top and other entities as parts of the family trust, which relies on the multiple connections of equity or non-equity. From the perspective of China's current situation, the Chinese families continue facing the opportunities and challenges of family assets isolation, protection, family succession, identity changes of family members, civil status relationship changes, family business "exporting " and "importing", domestic and overseas financing, international trade, international talent introduction, international technology imports and transfers, etc. Therefore, an integrated, comprehensive and rational design of the family offshore trust is indispensable.

Service functions:

Risk isolation and asset protection

Trusts have independent legal status and can hold property independently. Therefore, after putting the family assets especially equities of family business into the trust structure, firstly, the trust property will eventually be shown under the trust’s name (usually held by the trust company as a trustee) instead of being under the name of a certain family member. The above confidentiality provides the first safeguard against external infringement. Secondly, after establishing the trust structure, even if family members have to divide family assets caused by divorce, succession or suffer a property freeze due to a creditor's recovery, all will only affect the property which is still directly owned by the family members but not the property held by the trustee. At the same time, the property in the trust structure is stored and appreciated abroad, which can effectively prevent the expropriation and confiscation of assets caused by unstable domestic political situation.

Cooperate with the global/cross-border asset age system to optimize the asset allocation

Enhance the overall efficiency of the assets by cooperating with the global/cross-border assets age system. For more details, please see the global/cross-border asset age system.

Achieve family governance

Through the cooperation of the family trust structure and the family charter, the private entrepreneurs can realize the long-term governance of the existing family members and future descendants. According to the beneficiary system of the offshore trust, if members of the family want to continue to get support and allowance from family wealth, they must always follow the beneficiary conditions stipulated in the family charter and benefit condition of specific projects, including acknowledge the family culture, follow the family behavioral norms, etc. Thus, family founders can achieve a dual purpose that family wealth is enjoyed by family members and family culture is inherited by family members as well.

Achieve tax optimization and tax information exchange optimization

This is a natural by-product of the offshore family trust structure. For example, family assets are held by an offshore trust structure and grow in the trust, and if properly planned, there will be no individual income tax; there is no succession problem of the trust structure itself; reasonable design of offshore structure would save dividends tax and so on.

Service contents:

Due Diligence

Select the assets to be included in the offshore family trust structure d on the status quo of client’s assets;

Issue due diligence memorandum on the basis of the necessary due diligence;

Project design

d on the client’s needs to propose the preliminary proposal of the location of the offshore family trust structure;

Lead professional organizations in the Mainland China, Hong Kong, Cayman, BVI and other relevant offshore jurisdictions to design works for family trust and global asset age;

Provide legal advice on the legal issues of the family trust structure and the asset global ages from the perspective of Chinese law;

Coordinate the professional institutions of other relevant countries and regions and provide professional advice on specific matters relating to such countries or region when necessary;

Study and design relevant trading channels to achieve the purpose of legally placing domestic assets into family trusts;

Predict the possible transaction cost of the domestic restructuring and trading when placing the domestic asset into family trust structure, and provide it to the family for reference;

For the purpose of this project, to draft and formulate the reorganization plan of enterprises and assets, the prevention plan of legal risks and the legal protection plan of core assets.

Program implementation and structure establishment

d on the purpose of this project, implement the reorganization plan of enterprises and assets and the legal protection plan of core assets;

Set up a family trust structure and draft the relevant legal documents of the family trust structure;

Assist the family to select the appropriate trust trustee according to the client's requirement;

Set up the relevant offshore company;

Draft and complete relevant legal documents on domestic transactions of domestic assets transferring into family trust structure; Assist clients to set up foreign direct investment system;

Assist client to communicate with relevant approval/filing department and registration department, complete relevant approval, filing and registration procedures;

Answer general tax law questions in cross-border mergers and acquisitions.

Target Clients

If you or your family:
Need three or more services of building the specific trust structures
Have Individualized needs that cannot be met by other specific trust structures
Expect a match between family governance and the family trust structure
Then you may need to learn more about this service.