Family trusts have the functions of isolating assets and debt blocks, protecting pre-marital property, locking equity and inheriting family businesses, tax planning, long-term care of specific groups, preventing any descendants from squandering property, smooth inheritance and inheritance of private property, etc. , through the flexible use of family trusts, family wealth can be well controlled, preserved and passed on. Family trusts have a very long history in developed countries, and the wealth preservation and inheritance model of family trusts has also become relatively mature. In China, due to the late start of family trusts, there are still some institutional and model obstacles.

However, with the continuous improvement of laws, regulations and policies, and the increasing willingness of high-net-worth individuals to inherit, family trusts will surely become the focus of many high-net-worth individuals with their powerful wealth planning and risk isolation functions. focus. The saying "Wealth cannot last more than three generations" means that many heirs do not have sufficient management capabilities for their own wealth, so they will gradually lose their management rights. Some heirs may even become arrogant and extravagant, eventually leading to the loss of family property. As trustees of a family trust that can appoint trustees of the trust after Murdoch's death, the four children also have voting rights in News Corp.

Managing family wealth by professional and prudent trustees can prevent wealth from being controlled by beneficiaries who lack management capabilities and provide beneficiaries with long-term stable income. Separating ownership and control of wealth from the family trust ensures minimal damage to the estate. In addition, a family trust can also separate the trust property from many uncertain events, such as death, divorce and bankruptcy, thereby achieving risk isolation of the property.

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