In order to promote wealth management people to understand the family trust more accurately, promote the family trust market to develop better. The thirteenth 21st century will be held in Beijing on December 12th.Asian FinanceThe annual conference will set up a "21st Century Wealth Management Theme Forum: Crossing the Wealth of Wealth" to explore family trust and wealth management in depth.
At present, the influence of Circular No. 37 on the family trust business is slowly emerging.
In August this year, the Trusteeship Department of the China Insurance Regulatory Commission issued the Notice on Strengthening the Trust Supervision of the Assets Management Business Transition Period (referred to as “No.37 Document”). Many family trust practitioners said that the article was conducted on the family trust. The definition of the specification has a positive effect.
According to the 21st Century Business Herald reporter, the requirements of the 10 million thresholds stipulated in the No. 37 document also have some impact on business development.
"After the threshold is raised, the current demand will be affected, but the long-term space is still very large. With the increasing wealth of Chinese society, the demand for protection and inheritance will certainly become stronger and stronger," said a trust company.
However, to promote the long-term development of family trusts, the more urgent thing is to let the market establish an accurate understanding. Due to performance pressures and other reasons, some account managers may emphasize the effect and ignore the preconditions, leading to some market misunderstandings, such as family trusts can avoid tax and avoid debt.
"Family trusts have preconditions for avoiding debts. First, family trusts must be established before debt conditions arise. Second, trust sources must be legal. Third, property should not be joint property." Wang Wei, senior partner of UBS Law Firm Said.
No. 37 Wenzheng Puppet Family Trust
Prior to Circular 37, there were some pseudo-family trusts or family trusts with the purpose of financial management, the name "family trust", but with a short period of time and no specific arrangements for beneficiaries.
Some insiders pointed out that it is a good thing to define the family trust by supervision, which will promote the sustainable and healthy development of the industry, but it is not strictly regulated, it is another matter that needs to be explored. "I think the threshold (10 million) is relatively dead, and it has an impact on middle-class families. It is not only high-net-worth customers that need family trusts."
A person from a trust company said that as a regulated institution, it is sure to abide by the new regulations. Now the family trust will be unified 10 million, and the industry below 10 million will no longer be labeled as “family”. For example, there are family trusts and wealth management trusts in the industry. Wait.
Of course, after the publication of Circular No. 37, it does not mean that the family trust cannot be done under 10 million yuan, and it can be done. However, it is subject to the new regulation and regulation, and the cost may increase.
The 21st Century Business Herald reporter learned that although the No. 37 document has suppressed the current market demand to a certain extent, the market is generally optimistic about the development prospects.
"Now the market is relatively mature, and the regulatory attitude is relatively clear. It is not only allowed to do, but also supports it. It has been restricted by new regulations. For many trustworthy trust companies, the family trust will be a big one. Business direction." Wang Wei believes.
Some insiders told 21st Century Business Herald that some customers who are interested in public business will take the initiative to ask whether the trust company can be a family trust, which will force the company to transform.
Conditions for avoiding debts and inheritance
However, at present, the client understands that there is something to be improved about the family trust, and whether the family trust can avoid debt is one of them.
It is understood that family trusts have a precondition for avoiding debts.
First, the family trust establishment must have a subjective will to evade debt before the debt condition is created, that is, when the trust is established. In addition, it is very important that the source of the trust established by the client is legal and whether it can be fully controlled by itself. If many people do not have pre-marriage and post-marriage property agreements, in this case, if you do not get the spouse's consent, you will be a problem if you do the family trust privately.
From the perspective of a common foreign country, if you want to avoid debt disputes, you should pay attention to the control of the trust and not retain too much control.
"China is not the same as foreign countries. China's "Trust Law" stipulates that the principal and the beneficiary have the same power, that is to say, the trust established in China, the trustor can retain control. If someone has control from the trustee alone From the perspective of challenging family trusts, it is currently not feasible." Wang Wei said.
In addition to avoiding debt, many current clients are still struggling with how to choose domestic and foreign family trusts. Most practitioners have stated that domestic assets are best used as domestic family trusts. It is understood that the advantages of overseas family trusts are: long history, many jurisprudence, more choices, more experts, making the certainty higher. However, domestic family trusts also have advantages, such as the convenience of handling domestic assets.
"The domestic "Trust Law", "Property Law", "Marriage Law" and other laws and related regulations can already support local trusts to achieve almost all functions of offshore trusts, so the client does not have to worry too much," said the family trust.
As the market's understanding of family trusts gradually deepens, the industry will gradually enter the fast lane of development.
According to the "China Trust Industry Development Report 2017-2018", as of the end of 2017, a number of trust companies have established professional family teams to carry out family trust business. The total size of the national memory family trust exceeds 50 billion yuan, and thousands of stock products .
Lai Xiufu, director of the trust department of the China Insurance Regulatory Commission, recently wrote that the family trust is the original business of the trust company and one of the main directions for future transformation and development. The development of the family trust puts higher demands on the trust company. In the face of broad market demand, trust companies only focus on the function of “trustee”, adhere to the principle of “maximizing the benefit of beneficiaries”, dig deep into the original value of the trust system, and enhance their own strength in all aspects, in order to seize the future development of family trusts. Historical opportunity.
(Article source: 21st Century Business Herald)