A few minutes later.

"Chairman, are you looking for me?"

He whispered when Frank Austen, wearing gold-rimmed glasses, was having a video online meeting with Abel alone.

Frank Austin, Abel's chief legal officer, financial and accounting team responsible.

This is the top 50 lawyers in the entire federal territory. He attracted much attention during the Lehman Brothers storm in 2009 for his fierce criticism of the financial regulatory authorities. And when Abel first met Phella, he was also the aunt who was taken by Abel to intimidate Phella. He also gained the trust of Abel and is currently in charge of the legal work under Abel.

Faced with Frank, Abel straight to the point: "During this period, I have briefly learned about the asset management method of family trusts that are popular in Europe and the United States. Before making up my mind, it is necessary to discuss this issue with professionals!"

Family Trust?

Frank raised his eyebrows and said, "The charitable fund being applied for is essentially a financial management idea of ​​a family trust holding company. Is the chairman ready to start a new business?"

Use trust-holding charitable funds held by private families as a way to avoid taxes. This is one of the most popular ways for real wealthy people in the world, from Buffett to Bill Gates. They all like to use this method, which can not only successfully avoid taxes, but also gain a reputation for charity that is so popular.

A fool is unwilling to do it.

At the Blue Star 1 press conference on Blue Star Future, Abel said that the charitable foundation to be established publicly has always been operating. Because over the years, more and more wealthy people have chosen this path, the federal government has become increasingly strict in scrutiny of this aspect. Now it is no longer just one person who can establish such a private family-controlled trust-type charitable foundation.

If everyone avoids taxes like this.

Where will the IRS of the federal government collect taxes? Should we put all the pressure on taxes on the middle class that cannot resist? Although this is very good for the government to the rich, if the pressure is too great, the entire middle class will be crushed.

Who will collect taxes from then on?

Do you pay taxes to those bitter leeks and poor people? How much money can they have? The best way is to avoid taxes in this way by those at the top. But the rich people at the top are fine, but they have to pay such low taxes in this way...

It still doesn't work. After all, the pressure of taxation cannot be entirely on the middle class, and ordinary rich people also have to bear some pressure.

Now Frank Austin, Abel's chief legal officer and accounting officer, thinks Abel is not satisfied with the progress of the charitable fund. He was about to explain that not everyone can build a charitable fund like Bill Gates or Buffett.

"No!" Abel shook his head, "The charity fund will still control most of my assets in the future in the future by trust! However, given that my affairs in one aspect are more complicated than others, I hope to take advantage of the weak international economic situation and take out some funds to set up another wealth insurance for each of my next generation!"

Frank Austin glanced at the boss in surprise and asked, "What does the boss mean?"

"Private family trust is a good way to manage assets!" Abel stood up, stood in front of the window with his hands behind his back, and his bright and handsome outline formed a faint shadow under the light. "But in this way, there will inevitably be a big pot of food in the future. I must make sure that my children have another income in addition to the charity fund, which belongs entirely to their own trust plan! When they become adults, they can completely deliver the trust assets to themselves!"

The main advantage of a family trust holding company is that it can effectively concentrate equity and help family descendants maintain the special assets of the family and the company. The client can lock in the company's equity through family trusts to avoid disdaining the descendants to sell their father and grandparents' assets to squander their lives!

But the family trust is not completely good. The reason why Abel was worried was that he suddenly realized that he had four unborn children and had to prepare for the future.

It is also because many grievances in wealthy families in Europe, America or Asia that have occurred in the past reminded him.

Recently, the farce of Viacom's Redstone family was just released. Redstone is too greedy and unfair. Now he is in his 90s, but he is a bit lonely. The descendants of the family are constantly fighting for property.

Abel once saw it in the newspaper, the [Sun Hung Kai Real Estate] in Hong Kong in China, and the Guo family’s struggle for inheritance also gave him a warning.

According to the report he has read, the Guo family holds 42% of the company's equity in the form of a trust fund, and Ms. Guo Kuang Xiaoqing and her three sons are the beneficiaries of the fund.

The company's founder Guo Desheng originally established a trust fund in order to advance and retreat together, so he set a clause that "shares cannot be sold"! However, things went against his wishes. Guo Desheng's three sons had different dreams and fought for his legacy. Under the framework of the trust fund he established, the three brothers could not resolve the dispute by splitting up their families.

At this deadlock, the three brothers went to court for control of the company. For a long time, the company's stock price fell sharply. It was not until their mother came forward to stop the dispute that the incident came to an end, but the matter was never resolved!

This is a major side effect of family trusts! Even if the sign and guise of charity foundations are used, it is also inevitable. There is another major side effect, that is, it is difficult to resolve family disputes, family trusts may also cause family members to lose their business.

Generally speaking, when economic resources are shared by family members, members tend to scramble to take them for themselves to strive for the greatest personal benefit. The worst case result is that resources are overused and consumed prematurely.

This is like the fish in the lake are shared by people around the lake, but residents tend to catch them as early as possible, worrying that there will be fewer fishing catches on the slow side. With this in mind, due to excessive hunting, future residents and grandchildren will have no fish to catch.

Although the tax avoidance method of charitable foundations is very high, it is actually a similar family trust. What happens to family trust foundations, similar situations, may also occur on the assets of private charitable foundations.

The two are no different.

In this case, the assets of the trust, including the family business, are owned by current and descendants of family members, but current family members may tend to try to withdraw their resources in advance in various ways, but ignore the long-term development of the company.

As the family members become more and more members, the situation of fishing in exhausted waters becomes more and more serious, and Abel cannot be worried!

How to avoid possible family disputes that affect the operation of the company and reduce the adverse impact of the design of the bundled holding mechanism on the family business, the interests of the Guo family and the Redstone family are undoubtedly worthy of reflection for Abel.

Although there are plug-ins, I am never afraid of losing money. However, this plug-ins cannot last forever. In this case, of course, you have to consider the affairs of your descendants.
Chapter completed!