Offshore means that an investor's company is registered in an offshore jurisdiction, but investors don't have to go to the local area in person, and their business operations can be directly carried out anywhere in the world.
Trust is an important tool of financial management. According to the definition of Anglo-American law, trust means that the client gives his property (including real estate, intangible assets and tangible assets) to the trustee, and the trustee manages or keeps the property according to the purpose of the trust, for the benefit of the beneficiary or for a specific purpose.
Offshore trust refers to the trust established in offshore areas. It is similar to trust in operation, but because there are relatively loose or special policies in the definition or law of trust in specific regions, or the interests of beneficiaries can be more protected.
2. Family trust: Family trust is a kind of property management method entrusted by individuals or families to manage and dispose of family property on their behalf, so as to achieve the goal of wealth planning and inheritance for the rich. It first appeared in the United States after 25 years of economic prosperity (1982 to 2007, known as the second gilded age in the United States). In family trust, the ownership of assets and the right to income are separated. Once the rich entrust the assets to the trust company, the ownership of the assets will no longer belong to him, but the corresponding income will still be collected and distributed according to his wishes. If the rich divorce, property division, accidental death or expropriation, the money will exist independently and will not be affected. Family trust can better help high-net-worth people plan "wealth inheritance", and it is gradually recognized by the rich in China.
3, the difference between offshore trust and family trust:
Family trust has advantages over offshore trust. First of all, the trust law requires a trust license to carry out trust activities in China, which means that the qualification of offshore trust may not be recognized and there are potential risks.
Secondly, when there is an offshore trust dispute, it is likely to fall into a predicament beyond the domestic judicial power. In addition, language and cultural barriers will also bring difficulties to services. He predicted that in the next five years, domestic trusts will exceed the scale of offshore trusts.