1928: The rise of giant merchants

Family trust is a property management method in which a trust institution is entrusted by an individual or family to manage and dispose of family property on their behalf to achieve the wealth planning and inheritance goals of the wealthy.

In the family trust model, the ownership of assets and the right to income are separated from each other. Once a rich person entrusts the assets to a trust company, the ownership of the assets no longer belongs to him, but the corresponding income is still collected and distributed according to his wishes.

If a wealthy person gets divorced and divides their property, dies unexpectedly, or is debt-collected, the money will exist independently and will not be affected.

Family trusts can better help high-net-worth individuals plan “wealth inheritance.” This model seems very advanced in this era, but it has been generally accepted by the wealthy in later generations.

The reason is simple.

You can't be rich for more than three generations.

No matter how powerful you are, you will only have control over wealth for a hundred years. You may be able to teach your sons and grandsons well, but you will never be able to take care of the next generation.

Once there is a flaw in the middle link, the country and foundation you have worked so hard to build will be wiped out.

This is a dynastic change that no family can avoid.

If you want your family to last for a long time, you must learn from the ideas of overseas consortiums.

First, while he is still alive, he can establish a super consortium that can rival the country. For example, the super wealthy families in the United States, Japan and South Korea have been in power for hundreds of years. Their voice and energy even exceed the government.

Second, establish a family trust fund to preserve family wealth intact in this way.

Even if the consortium collapses, as long as the family trust fund remains, the descendants will have the capital to make a comeback.

"This is indeed a very interesting idea, but Ye, according to you, once this kind of trust fund is established, the first thing we ensure is that no family insiders will be involved in the management of the fund, right?"

Livermore sat in the car, very interested in the idea proposed by Ye Luo, but he also had many doubts.

The implication of his words is very clear. Since you are not involved in the operation of the company, what should you do if they embezzle your money?

"There are constraints of trust law and supervision in all aspects. And while we are alive, the investment of trust funds is done according to our inclinations, and the income is distributed by us."

Ye Luo understands his concerns, but many wealthy families in later generations have answered these doubts. At present, this is the best solution for rich people to inherit their wealth.

"Livermore, this is not a problem between one or two of our families."

The trust fund is independent of the family, ensuring that it is not subject to interference from internal members and becomes ineffective. However, this will also bring about invisible security issues.

With restrictions from the law and all walks of life, it will obviously become much more reliable.

But in fact, the real constraints come from other consortiums.

In later generations, the family trust funds established at the beginning still did not get rid of the single-mode management, which caused it to change after decades. Later, the Rockefeller family, the Kennedy family, etc. in the United States have borrowed the influence of family trusts and family foundations. The wealth inheritance mechanism creates an evergreen foundation for family wealth.

Their approach is to set up funds for each other, or even set up cross-funds to restrict each other.

This model is similar to the Nippon Foundation.

Later generations of Japanese conglomerates such as Mitsubishi and Sumitomo, in their later stages, no longer had one family controlling everything, but multiple families took turns taking charge and were bound to form a community of interests.

This is exactly the opposite of Korea.

South Korea's Samsung has always been run by the Lee family.

The pros and cons of the two models are also obvious. In the Japanese-style consortium, each family's wealth is not that much, but the foundation is everlasting; in the Korean-style consortium, the family wealth is terrifying, but every time they inherit it, they will be killed in a river of blood. , and once the family falls, the consortium will be wiped out.

After Ye Luo explained, Livermore suddenly realized.

You kid turned out to be dragging me into the water with you!

In fact, Ye Luo also invited several other families, but unfortunately only Franklin and Old Joseph agreed to come.

But that’s enough. One is the Roosevelt family, the other is the Kennedy family, and counting the two of them, the four cross-established trust funds are completely comparable to the super trust companies of later generations.

The group arrived at the YB Bank headquarters building. Franklin and Joseph Sr. had been waiting for a long time.

According to Ye Luo's idea, the four families crossed over to establish trust fund companies, and each family was jointly managed by the other three, so that they could supervise and restrict each other.

If new families join in the future, the fund model can become more complex. In any case, professional matters are left to professional people to handle, and rich people like them can enjoy the benefits.

Each family's trust fund is named after the family, and then the trust fund company exists in the form of a securities company.

For example, the Ye family is called the Ye Family Trust Fund, and to the outside world it is the Ye Family Securities Company.

"It is not only common in the Republic of China to be rich for more than three generations, but also in the United States." Ye Luo sat on the main seat and talked eloquently, "Even if you are a family that relies on politics, you can't guarantee that your family will stay in politics, right? .”

"Of course." Franklin nodded in agreement.

"We have read the specific details, and I have to say that the idea of ​​setting up cross-funds is perfect." Old Joseph said with emotion.

Take the Ye family as an example. If other families want to kill the Ye family in the future, assuming that the Ye family is crushed to pieces, then part of the trust fund properties of the other three families originally controlled by the Ye family will be taken over by the other two.

When the four families restrict each other, it is a perfect balance, but whoever takes the initiative will tilt the balance, and only one will survive in the end.

This is obviously not the ending they want.

Therefore, whoever takes action will be targeted by the other three companies, but in order to maintain a balance, everyone will not kick it out.

"Unless one day one company is powerful enough to annex the other three, by then, our graves will be taller than the mountains, and we won't be able to control so much." Ye Luo joked.

The four of them laughed together.

"One more thing, please pay attention to this. When it comes to the distribution of trust interests, we can choose different forms such as one-time distribution, regular quantitative distribution, temporary distribution, conditional distribution, etc. For example, for my son Ye Zhuohua, we can choose to wait until he is in school. Allocate part of the funds to him in college, and you can also set many additional conditions for him to inherit the property, such as getting married, not entering the entertainment industry, etc."

Ye Luo knocked on the table,

"In short, everything can be worked out and we can control their lives."

"This sounds cruel. He is obviously your eldest son and the natural successor, but he has to be restrained like this." Franklin laughed.

"This is also for the longer-term development of the family. Who knows whether this boy can shoulder the responsibility of the Ye family in the future, haha." Ye Luo blinked at them, "And our heirs will not be just one or two. Isn’t it?”

Several men laughed tacitly again. (End of chapter)