When it comes to family estate planning, ordinary people often have two major misunderstandings.
The first misunderstanding: Talking about money between husband and wife can easily hurt feelings
The second misunderstanding: Only rich people need to do estate planning
In fact, smart people Talking about money politely can actually enhance feelings.
And family estate planning is not just for the rich.
Every ordinary person must learn to protect his family with love and wealth.
Love is the spiritual foundation of the family and the emotional bond.
Wealth is the material foundation and the lowest level of protection for the family.
After recently reading the book "How Middle-Class Families Defend Wealth", I have more thoughts on how to defend family property.
This book has two authors, one is the well-known lawyer Guo Li, and the other is the famous insurance expert Sai Mei.
The book lists 20 typical cases of family property disputes. The author proposes preventive measures and solutions from both legal and insurance aspects.
Wealth inheritance is an issue that every family needs to consider, especially for high-net-worth individuals. If they do not plan in advance, it is easy to create various risks of wealth outflow.
There are some common misunderstandings about when to do wealth inheritance planning.
For example, some young and powerful entrepreneurs feel that wealth inheritance is an issue that needs to be considered only when they are older;
Another example is that some people are influenced by traditional culture and feel that it is unlucky to plan wealth inheritance in advance. .
In fact, wealth inheritance planning has nothing to do with age. Only by planning in advance can you pass on your love and wealth and bring long-term happiness to your family.
There are at least more than 20 tools to help families achieve wealth inheritance. Let’s briefly introduce 4 tools.
Making a will is a relatively familiar way for the public to pass on wealth. If you want to make a will, it is recommended that you make a notarized will to ensure the validity of the will.
Willary inheritance will still face many difficulties in practical application, the most common one is the notarization of inheritance rights.
Notarization of inheritance rights is a notarization procedure by which the national notary institution, based on the application of the parties and in accordance with legal provisions, proves who has the right to inherit the inheritance of the deceased and proves that their inheritance activities are true and legal. Heirs must hold a notarized certificate of inheritance rights in order to handle the inheritance procedures for assets such as houses, equity, deposits, stocks, and vehicles. [1]
To process the notarization of inheritance rights, all first-in-line heirs need to give their consent and must go to the notary office to go through the relevant procedures together.
When there are many heirs, there will be various uncertainties in notarizing inheritance rights.
In fact, there are many ways to pass on wealth, such as marital property agreements, life insurance, trusts, etc. However, only testamentary inheritance requires notarization of inheritance rights.
If you want to do wealth inheritance planning, you can first learn more about several different tools and then make the choice that suits you best. You don’t have to stick to one method of will.
A marital property agreement can be signed before marriage or during marriage. The main purpose is to agree on the ownership of pre-marital property and post-marital property.
There are three types of people who especially need to consider signing a marital property agreement:
1. Entrepreneurs. Entrepreneurs' marriages often bring unpredictable risks to the business' operations. The main purpose of signing a marital property agreement is to isolate the equity of the company and add stability to the development of the company.
2. Remarried people. Remarried people usually have accumulated certain assets and may also need to pay support for their spouse and children from the previous marriage. Signing a marital property agreement can stipulate pre-marital assets and liabilities to avoid conflicts in the future.
3. Those who buy a wedding house can clarify in the marital property agreement their respective shares of the house; the proportion and source of capital contribution for house purchase; the way to bear the mortgage payment, etc., so as to avoid years of savings being eroded due to the risk of marriage. Half of it was taken away.
For ordinary families, the insurances that can be considered include critical illness insurance, medical insurance, life insurance, accident insurance, annuity insurance, etc. Different insurance products have different functions.
As the main financial supporter of the family, you can plan for protection through insurance;
For minor children, you can plan for education through insurance;
Full-time Madam, you can isolate personal risks by configuring insurance.
If you can hire a professional insurance agent, you can design different insurance plans based on the different needs of family members.
By making good use of the legal attributes of insurance tools, you can help achieve certainty in the inheritance of family assets.
For example, if a beneficiary is designated in a life insurance contract, these assets will be directly delivered to the beneficiary in accordance with the insurance contract without being included in the inheritance process.
High-net-worth individuals can also consider using trust instruments to protect family wealth.
After a trust is established in accordance with the law, the trust property does not belong to the personal property of the trustor. The trustee must deliver relevant trust rights and interests to the trust beneficiary based on the trust document. [2]
Based on the independence of trust property, debt risks and marital property division risks can be isolated.
Family trusts not only have the functions of asset isolation and wealth inheritance, but also have strict privacy protection and strong flexibility, and can be customized according to the circumstances of different families. In recent years, more and more high-net-worth families in China have begun to consider setting up family trusts to protect family wealth.
Although my country’s family trust business is still in the development stage, I believe that with the continuous accumulation of industry experience, it will become more and more mature in the future.
Introduced 4 tools to help protect family wealth. Did it also inspire you?
Using legal and financial tools to arrange family property not only reflects a sense of responsibility for the family, but also shows care for the family with practical actions.
May you also protect your family wealth and let your wealth help your life bloom.