Since Li Xiaoshu asked in confusion what the question is [trust], Li Ming, as his brother, naturally answered it patiently.

[Trust Fund] is also called credit fund custody. Although it is somewhat similar to a charitable fund, it is a top magical existence in the investment field.

Specifically, it refers to the behavior of the principal entrusting his property to the trustee based on his trustee's trust, and the trustee manages and disposes in his own name in his own name as the interests of the beneficiary or specific purposes according to the principal's wishes. From the perspective of attributes, from the time of the establishment of the trust, the property of the trust has nothing to do with the principal.

The magic of trust is that it is both a financial management method and a financial system, and together with insurance, banks and securities, it forms a modern financial system.

In his previous life, Murdoch used the trust to successfully avoid the high inheritance tax and gave all the money to his children, leaving Miss Deng almost unpaid.

The fake person also used a trust and miraculously got rid of two billion US dollars in debt.

Although it is often mentioned, most people have heard of it and learned little. So now let’s briefly talk about what the use of trust is.

[First estate management]. People often worry that rich people will not be rich for three generations, and their children and grandchildren will not be able to do anything. The first function of the trust perfectly solves this problem.

For example, what should I do if a rich man is addicted to gambling after his life? At this time, an inheritance trust can be established and all his property will be handed over to the trust fund. In addition to ensuring a fixed monthly living expenses, it can also establish a condition for his descendants to get how much money, such as what university to get into, who to marry, how many children to have, or even outrageous conditions similar to Wang Duoyu.

If one generation does not strive for success, then wait for the next generation. If the conditions are guaranteed and stimulated, then there will always be another generation that can arise. The possibility of the class’s whereabouts is eliminated directly from the source. As for the Jingtu accumulated by the people at the bottom, as long as there is a generation that does not compete for success, the inheritance of the entire bloodline will be a problem.

[Second, marriage property protection]. Men are generally loyal after all, and they like 18-year-old girls from the age of eighteen to the age of eighteen. For example, Murdoch's life at the age of 90, and it is understandable that they have experienced four wives.

Understanding is understanding, but what if you marry a scheming woman? Even if your pre-marriage property does not count, half of the wool will be taken away after divorce for most of your life. So you can advance your salary for thirty or fifty years in advance, or simply owe a few hundred million yuan to the trust fund, and then leave the rest to the trust. Even if you encounter a divorce, you will only have a few melons in your name, just divide it.

[Third, Isolate Property Safety]. To put it bluntly, it is to prevent creditors from collecting debts. For example, if I want to start a business now, there are always risks in starting a business. At this time, you can leverage through a bet agreement. Simply put, if I lose the bet, I may be in high debt and have to sell my house, car, and pay off my wife's debt. If I have a trust at this time, I can put all my previous property in it. Because this money is no longer legally owned, so the debt will naturally not be recovered, and my wife, children, and the family will not be affected at all. (my country does not implement this item)

[Third, reasonable tax avoidance]. This concept is simple. Whether it is gift tax or inheritance tax, I have given up the ownership of this money. In strict sense, this money is not mine. I can't withdraw it or use it. What tax do you ask me to pay?

[Fourth, privacy protection]. Whether it is investment, financial management, or expenses, all the expenditure topics are trusts. Where do you check the controlling shares behind it? Who are the specific people referring to?

......

Along the way, Li Ming briefly explained the function of trust to Li Xiaoshu, and then summarized it, "You see, you talk about what is born equal every day, but in fact, as long as you take a little bit of the way, trust can become an exclusive tool for the wealthy class."

After hearing his brother's words, Li Xiaoshu felt a little dizzy, "I understand, but why do those people give us wealth?"

After touching Li Xiaoshu's head with his left hand, Li Ming continued, "It's not bad. I've made great progress during this period, and you can find the key points in it in a moment."

Li Xiaoshu, who was touched by her head, subconsciously narrowed her eyes and showed a happy smile on her face.

"Trust trusts, trust, trust, and trust," Li Ming continued,

"To establish a trust, the most important thing is credit issues.

There are generally two types of trusts, divided into collective trusts and family trusts. Family trusts are what I just mentioned to you, while collective trusts are a kind of financial management product similar to private equity funds.

We not only have to do things about pharmaceutical factories, but also make them a beautiful advertisement. Because no matter how much they say, it is useless. As long as they put high returns in front of them, they will not be able to suppress the urge to give their money to us.

And once the trust is established, then the family trust can appear."

Seeing that his brother took out a candy in his pocket, Li Xiaoshu took it in thoughtfully, pushed it away and gently put it into Li Ming's mouth, and then asked, "But they gave us all the money. Are you not afraid that we will go bankrupt or run away?"

Li Ming continued with candy in his mouth,

"Who really trusts anyone? What is the basis of solid trust? It is the basis of cooperation with each other and the ability to repay risks.

What do you think we are engaged in a real estate cycle and we have a bunch of future real estate that we have not even dug in our hands. What am I doing?

First of all, those properties can be used as mortgage value to balance their risks. Once there is a problem with our trust, they can also make up for their own losses from the property.

If housing prices soar, the property we hold becomes a gold mine that does not need to be mined. Those who own these properties do not need to prove that we can trust them. They will beg us to trust.

After they entrusted the money to us, we, who had huge working capital, could fully develop Kangcaien in a crushing manner, involving all industries and corners of people's livelihood.

By that time, the Li family will become a huge group that cannot be defeated or fallen before the federal government's vigilance comes.

Only when we fail, the trust will collapse. If the trust goes bankrupt, everyone will lose to death. The chain reaction will collapse the entire federal financial system, and large-scale unemployment rates, riots, marches, and even uprisings.

We are not going to fall. With the help of family trusts, the rich are responsible for gathering social wealth, and we are responsible for gathering wealth of the rich...

Even though Li Ming described something that would only happen in the future, Li Xiaoshu felt creepy and chill just by listening.

"Brother, if that's the case...are we...?" Li Xiaoshu didn't even have the courage to say what she wanted to say.
Chapter completed!