Under this wave, a large number of private banks, family financial offices, trust, insurance and other professional institutions and tools have emerged. Insurance trust is the product of the combination of insurance and trust.
① Elaborate the development of insurance trust.
② Characteristics of insurance trust
③ How to use insurance trust?
④ Lack of domestic trust
From 65438 to 0886, insurance trust was first born in Britain. At the beginning of the 20th century, the Irrevocable Life Insurance Trust (ILIT) developed in the United States. 65438-0925, Japan began to carry out life insurance trust business. In Taiwan Province Province, China, Vantone Bank first applied for life insurance trust business on 200 1. In Chinese mainland, the first insurance trust product didn't appear until May 20 14: the "heirloom" series of insurance trust products jointly launched by CITIC Trust and CITIC Prudential Life Insurance, with the trust company as the beneficiary of insurance benefits.
Although the assets of insurance trusts generally only involve cash assets related to insurance payment, compared with other trusts, they do not involve complex assets such as real estate and equity.
As the name implies, insurance trust is insurance+trust. There are two modes of general insurance trust, one is insurance-driven trust mode, and the other is trust-driven insurance mode. China mainly adopts the insurance-driven trust model.
The trustee mentioned above is a trust company, and the beneficiary of the trust is the person agreed by the applicant.
Insurance trust has the following characteristics:
First, the inheritance and appreciation of wealth.
Compared with insurance, insurance trust has the following advantages:
1. Break through the limit of insurance beneficiaries. Insurance cannot designate an unborn person as the beneficiary, but trust can. For example, insurance needs to specify a clear beneficiary, and trust can specify a certain range.
2. The payment of insurance money can be arranged flexibly according to the personal wishes of the client. For example, in the case of complicated marriage and children, the distribution shares and conditions before and after birth are stipulated respectively, so as to encourage the second generation to study hard and make progress, allocate different amounts of education funds according to the schools they attend and the achievements they have achieved, create opportunities for the second generation to pursue their dreams and try and make mistakes, provide conditional isolation and distribution for the second generation's marriage risks in advance, and guide and restrain the values and behaviors of the third generation and beyond through different distribution methods, thus continuing the family spirit.
3. An insurance trust can preserve its value while paying flexibly.
Value-added, the trustee of an insurance trust must properly manage the trust assets based on the trust responsibility, and the domestic trustees are all trust companies with strong general fund management ability.
Compared with simple trust, insurance trust has high leverage and relatively low threshold. The core of insurance is debt management and leverage. You don't have to touch the threshold of tens of millions like a simple trust. Generally, you can set the premium within1000000. The leverage of general life insurance varies from several times to even ten times. Although compared with trust, although the trustee can maintain and increase the value of trust assets through his own asset management ability, and can invest and manage wealth according to the wishes of the client, it is a conservative investment, but there is some uncertainty, and the insurance income is stable and predictable. The purpose of insurance trust is mainly to inherit wealth, not to achieve high returns.
Second, asset protection.
The establishment of insurance trust is not for confrontation with creditors, nor for the so-called debt avoidance of some insurance practitioners. When establishing a trust, it is necessary to obtain evidence to prove the legality of the assets.
Once a trust is established, the trust property is different from other properties of the trustor, trustee and beneficiary. If the client gets hurt,
At the time of bankruptcy, creditors can't claim to enforce the trust property, except that their creditors have enjoyed the priority of compensation for the trust property before the establishment of the trust.
In terms of insurance, after the death of the insured, the insurance money will not be regarded as the insured's inheritance, except that the beneficiary cannot be determined according to Article 42 of the Insurance Law, the beneficiary dies before the insured, and the beneficiary loses the beneficiary type. In this way, the insurance trust has achieved the effect of double risk isolation in form, and compared with other single financial instruments, the risk isolation advantage is outstanding.
Third, tax planning.
Insurance trust is widely used in developed countries in Britain and America mainly for reasonable tax saving. Life insurance claims are included in the category of inheritance, and inheritance tax is required to reach the threshold. The inheritance tax in America is relatively high. If life insurance is entrusted to a trust company, the death insurance can be exempted from inheritance tax. Insurance trust is a good tool in some countries that levy inheritance tax and gift tax. So far, China has not levied inheritance tax, and according to the provisions of the Insurance Law, death compensation does not belong to the category of inheritance. However, no one knows what will happen if inheritance tax is levied in the future. After all, laws can be amended if they meet international standards. Therefore, some high-net-worth people have this concern and plan ahead. Inheritance tax is mainly levied on the rich. I have always stressed that taxes should be kept as low-key as possible, and assets should be dispersed as much as possible by combining different tools, instead of putting a lot of money in one basket. Being legal now does not mean being legal in the future. Don't be too high-profile, you know.
Fourth, privacy and convenience.
Death claims and survival claims do not need to be publicized in advance or notarized by a notary office, which is one of the functions of insurance. Comparatively speaking, insurance trust is more secretive. Insurance trust can overcome the disadvantages of a single insurance model and is more effective in wealth management and distribution model. I have already said it, so I won't repeat it. Compared with the complicated procedures such as notarization of inheritance rights and notarization of wills in notary offices, the news media have already explained it. Insurance trust based on the protection of trust law avoids complicated notarization procedures of inheritance rights and even inheritance disclosure procedures. This arrangement is more suitable for high-net-worth people who have no concept of family trust.
How to choose the right insurance trust;
Choose guaranteed or inherited insurance trust products according to specific needs?
First of all, it should be clear that insurance trust is not a high-yield investment product, but it has a unique function of protecting family members and inheriting family fortune. If family members are unable or not good at handling the use of insurance money because of their age, they can choose annuity-type guaranteed insurance trust products. If the purpose is to inherit family fortune, you can choose insurance trust products with death insurance as the target.
Choose the principal or the trustee as the insured's product according to the income?
If the client's income is very stable and he is in good health, he can choose the client as the insurance trust product of the insured. If the customer's income is unstable and he is in poor health, he can directly transfer the insurance premium to the trustee, or conclude a fund trust contract with the trustee, stipulating that part of the funds will be used as insurance premium, and the trustee will set up an insurance trust as the insured and beneficiary to ensure the stability of insurance premium payment.
Do a good job in the system design of insurance trust to prevent possible risks.
Due to the lack of corresponding legal norms of insurance trust in China, it is necessary for policyholders, trustees and insurance companies to design corresponding contract structures, for example, to make it an irrevocable insurance contract to prevent future contract breach or tax problems, and to set up a trust protector to supervise the trustee's performance of the trust contract and protect the interests of beneficiaries to the maximum extent.
Defects of domestic trust:
The ownership of property is vague. So far, it is relatively vague that non-cash assets, such as real estate, and equity assets enter the trust. Therefore, at present, China's insurance trust is mainly based on funds and driven by insurance.
Trust was born in England, which is the product of common law and equity. However, China's property law has always emphasized the system of "one thing, one right", rather than the "dual ownership" in the American legal system (that is, the trustee is the nominal owner of the trust property and the beneficiary is the substantive owner of the trust property), which is not conducive to the insurance trust getting rid of the single business model of insurance-driven trust.
Article 38 of the Measures for the Supervision and Administration of China Trust Registration Co., Ltd., which was implemented in August, 2065438+2007, stipulates that only the collective fund trust plan will be publicized online, but the insurance trust mainly with single fund is not included. Paragraph 2 of Article 31 of the Measures also provides strict confidentiality for the boarding information of the trust. No unit or individual may inquire about or obtain the trust registration information, except under the circumstances that can be disclosed by laws, administrative regulations or the banking supervision institution of the State Council.
Outside the country, the trust is completely private, and even if it is necessary for the judiciary, the trustee has the right not to disclose the trust plan of the client. However, the privacy of trust plans in China cannot be guaranteed, and the trustee must cooperate with the disclosure of relevant trust plans if the judiciary needs it.
Domestic insurance trust has just started. Compared with foreign mature markets and relatively perfect legal systems, it still needs to grow, including domestic trusts, which have only developed for 70 years. But the future will definitely get better.