2. Frequently Asked Questions Involving Asset Planning in China

1. The Canadian immigrant generation returns, how to plan domestic assets for immigrant descendants?

Mr. Wang immigrated to Canada in 2008. Mr. Wang travels between Canada and China as a "trapeze" to take care of domestic business. In the end, Mrs. Wang and her two children successfully obtained Canadian passports and lived in Canada for a long time. Mr. Wang did not immigrate and still has Chinese passports. The child has been living in Canada and does not want to return to the country to take over the family business. The company is now very large, Mr. Wang does not want to sell it, it has not reached the listing level, and no one has taken over the inheritance. How to deal with the equity of domestic enterprises and take care of the lives of overseas Canadian descendants is a headache for Mr. Wang now.

​

• Scheme planning ideas: domestic enterprise equity domestic trust settlement, enterprise design professional manager incentive plan, Canadian beneficiaries enjoy dividends as trust beneficiaries. It not only ensures that the company has a sustainable development plan, but also ensures that the Canadian family benefits. In addition, it develops overseas business, builds a cross-border equity structure, and realizes dividends going abroad through equity paths, so that overseas families can enjoy dividends. ​

​

2. American immigrant, domestic asset holding agent, how to make inheritance planning for the next generation?

Mr. Wang started in the catering industry. In 2010, he studied for his children. Mrs. Wang immigrated to the United States with two children. Mr. Wang very much hopes that the eldest son can take over the domestic business and arrange for him to return to China after completing his studies to help him in the company, while the younger son will work smoothly in the United States. Both children and Mrs. Wang have American passports. Mr. Wang is worried about how to plan the equity of domestic companies. The eldest son gradually took over part of the work, but the identity of the United States did not want to give up. All of them were transferred to the son's name and faced double taxation. If they did not transfer, how should they be passed on? Although the youngest son does not participate in the operation and management of the enterprise, Mr. Wang also wants to leave enough funds for his future development and life.

​

• Scheme planning ideas: domestic enterprise equity is settled by domestic trust, the eldest son takes over the management of the enterprise as the manager, and the dividends and benefits can be arranged through the trust contract to arrange the interests of the whole family. ​

​

3. Chinese entrepreneurs, the whole family has not immigrated, and hope to make plans for the inheritance and dividend tax of domestic unlisted companies.

Mr. Wang and his wife started their own business from scratch. One of them is responsible for sales and the other is responsible for the management of the family business, but they have not done much research on financial planning and arrangements. There is an account in the family business. Before, the use of invoice offsets and other operations was used to avoid corporate income tax. However, as the domestic corporate tax system becomes more and more perfect, the two also realize that they need to sort out the corporate finances. However, how to do a good job in corporate tax planning under a reasonable premise and distribute dividends to individuals is an urgently needed solution for the two of them.

​

• Scheme planning ideas: The domestic trust scheme solves the three major problems of family investment and financing, reasonable tax planning and equity inheritance.

​

4. Chinese entrepreneurs, the whole family has not immigrated, domestic companies are listed in China (or invest in domestic listed companies), and they hope to reduce their holdings, optimize tax, and do a good job in family wealth planning.

​

Shareholders A, B, and C started a business together and led a group of business pioneers to finally successfully list in China. The entire listing process consumed almost all of the cash flow of several entrepreneurs. The reduction of shareholders’ holdings after listing is not a business operation problem, but a family need. However, in addition to paying 20% income tax after each share reduction announcement, it will also affect the stock price. All three hope to find a suitable solution, which can not only enjoy the benefits of listing, but also have tax benefits without affecting the stock price.

​​

• Scheme planning ideas: domestic trust scheme solution.

1) There is no need to announce the reduction of holdings;

2) The reduction of holdings is not subject to quota restrictions;

3) The value-added tax during the reduction of holdings is greatly reduced;

4) Assets in family trusts can isolate creditors;

5) The family trust can replace the will and avoid the trouble of notarization of the inheritance rights in the future, and realize the inheritance desire of the rich.

​

5. Chinese real estate entrepreneurs, whose assets involve the inheritance of real estate and properties.

Mr. and Mrs. Wang started as a typical real estate speculator. The two invested in more than 20 properties in first-tier cities in China. Recently, there have been constant voices about the introduction of the domestic property tax, and the next step of the inheritance tax has made the two of them think about how to deal with the arrangement of this part of the property. It can not only have tax benefits, but also allow future generations to enjoy the return on investment. It's not a good thing to leave more than 20 houses for future generations.

​

• Scheme planning ideas: solve the problem through the rules of domestic family trusts and senior creditors. ​

​

6. High-net-worth family in China, the whole family has not immigrated, and hope to take 10 million yuan to the next generation to pass on.

​​

Mr. Wang and his wife's family are both in China, and through their years of hard work, they also have a family background of over 50 million. Now the business is not doing well, the two attach great importance to the safety of wealth and the income of wealth investment. They hope to divide a portion of the money out as a safe fund for the family that can be passed on to future generations.

​

• Scheme planning ideas: domestic trusts and life insurance can achieve both steady growth and safe inheritance.

​

7. Middle-class family in China, the whole family has not immigrated, 400,000 RMB, hope to make inheritance planning for the next generation.

​​

Mr. Wang and his wife have a happy family. When they were preparing to apply for investment immigration, they also kept overseas investment assets of more than ten million US dollars. Now the immigration of the two people has not been successful, and they hope to have a proper arrangement for this part of the assets. Able to achieve safety and stability. Because the developer has run away when investing in overseas real estate before, the two are now very conflicted about overseas real estate investment. In addition, the investment in other projects is too deep, and the two are still very cautious. For this part of the asset, what kind of investment plan is more suitable?

​

• Scheme planning ideas: Domestic small trusts and life insurance can achieve both steady growth and safe inheritance.

​

​