A few minutes later."
Chairman, are you looking for me?"
When Frank Austen, who was wearing gold glasses, had a video conference with Abel alone, he whispered.Frank Austin, Abel's Chief Legal Officer, is responsible for the finance team and accounting team.This is the top 50 barristers in the entire Commonwealth.During the Lehman Brothers scandal in '09, he attracted attention for lashing out at financial regulators.And at the beginning, when Abel first met Fila, he was also his aunt who was brought over by Abel to intimidate Fila, and she also got Abel's trust, and is currently in charge of Abel's legal work.Facing Frank, Abel got straight to the point: "During this time, I briefly understood the asset management method of family trust, which is popular in Europe and the United States, and it is necessary to discuss this issue with professionals before making up my mind!"
”Family trusts?
Frank raised his eyebrows and said: "The essence of the charitable fund that is being applied for is the financial management idea of a family trust holding company.Is the chairman ready to start anew?
”Holding charitable funds with trusts held by private families as a way to avoid taxes.This is one of the favorite ways of the world's truly rich people, from Warren Buffett to Bill Gates.They all like to use this way, so that they can not only successfully avoid taxes, but also earn a good reputation for charity.Fools don't want to do it.Abel said at the future Bluestar No. 1 press conference that the charitable foundation to be established publicly has always been operated by Frank.Because over the years, more and more wealthy people have chosen this path.As a result, the federal government has become more and more scrutinized in this regard, and it is no longer just a single person who can establish such a private family-controlled trust type of charitable fund.If only everyone avoided taxes like this.Where is the federal IRS going to collect taxes?
Is it necessary to put all the pressure of taxation on the middle class that cannot resist?
While this is cool for the government and the rich, it is stressful to crush the entire middle class.Who will collect taxes when the time comes?
Do you want to collect taxes from those bitter leeks and poor people?
How much money can they have?
The best way is that those at the top can avoid taxes in this way.But for those who are not very wealthy at the top, it is no problem to avoid taxes reasonably, but if you want to pay such a low tax......
Still no.After all, the pressure of taxation cannot be all on the middle class, and ordinary rich people also have to bear some of the 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 just wanted to explain, and he explained that not everyone can build a charitable fund like Bill Gates or Warren Buffett."
No!"
Abel shook his head, "The charity fund will still control most of the assets in my name in the form of trust in the future!"
However, given that some aspects of my affairs are more complex than others, I would like to take advantage of the weak international economic situation to set up another wealth insurance policy for each of my next generation!
”Frank Austin looked at his boss in surprise and asked, "What does the boss mean?"
”"A private family trust is a great way to manage your assets!"
Able stood up and stood in front of the window with his hands in his hands, his bright and handsome silhouette forming a faint shadow in the light, "But in this way, it is inevitable that there will be a big pot of food in the future, and I must make sure that my children have another income in addition to the charity fund, which is completely their own trust plan!"
When they reach adulthood, they will be able to fully deliver the trust assets to themselves!
”The main advantage of a family trust holding company is that it can effectively concentrate equity to help future generations maintain the special assets of the family and the enterprise.But the family trust is not completely so good, and the reason why Abel has such worries is that he suddenly finds that he now has 4 unborn children and has to take precautions.It is also because of the many wealthy grievances that have occurred in Europe, the United States or Asia in the past reminded him.Recently, the farce of Viacom's Lei Shidong family is a play.Lei Shidong is just too greedy and unfair.I'm in my 90s now, but it's a bit of a loner.The descendants of the family are fighting over the property.Far away, Abel once saw in the newspaper, the [Sun Hung Kai Properties] in the Xiangjiang River over China, the Guo family's struggle for inheritance, also gave him a warning.According to the report he had read, the Kwok family held 42% of the company's shares in the form of a trust fund, and Ms.
Kwok and her three sons were the beneficiaries of the fund.Guo Desheng, the founder of the company, set up a trust fund in the hope that his three sons would advance and retreat together, so he set the clause "shares cannot be sold"!
However, contrary to his wishes, Guo Desheng's three sons had different dreams in the same bed and fought for his inheritance, and under the framework of the trust fund he set up, the three brothers could not resolve the dispute by dividing the family.Under this impasse, the three brothers went to court for control of the company, and after a long period of turmoil, the company's stock price fell sharply, until his mother stepped in to stop the dispute, and the incident was temporarily stopped, but the matter was never resolved!
This is a big side effect of family trusts!
Even the use of the signboard and guise of a charitable foundation is unavoidable.Another side effect is that in addition to the difficulty in resolving family disputes, family trusts can also lead to family members struggling to fish for the company.Generally speaking, when an economic resource is shared by family members, members tend to scramble to take it for their own purposes in order to maximize their personal interests, resulting in the worst-case scenario of overuse and premature depletion of resources.It's like the fish in the lake, which is a common resource for everyone in the lake, but the residents tend to catch them as early as possible, fearing that if they slow down, they will catch less.With this in mind, due to overhunting, future inhabitants will have no fish to catch.Although charitable foundations are tax-avoiding, they are also similar family trusts.What happens with family trusts, something like that, can happen with the assets of private charitable foundations.The two are no different.In this case, the assets of the trust, including the family business, are jointly owned by the current and future generations of family members, but the current family members may be inclined to withdraw the resources as early as possible in various ways, while ignoring the long-term development of the business.When there are more and more family members, this situation of fishing for all the water becomes more and more serious, and Abel can't help but worry!
How to avoid possible family disputes affecting the company's operation 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 Lei Shidong family are undoubtedly worthy of reflection for Abel.Although there are plug-ins, I am never afraid of running out of money.But this plug-in is estimated to not be immortal.In this case, of course, the matter of future generations is taken into account.Especially my own character, my own hobby.If you don't think about this aspect of things, when the children grow up in the future, they will become the laughing stock of the whole world like the Lei Shidong family and the Guo family.