In the economic wave of globalization, international trade is like an invisible link, closely connecting the economic pulse of countries around the world. Germany is a core member of the European Union, and in 2016, China surpassed the U.S. and France to become Germany's top trading partner for the first time, and more and more enterprises and high rollers are involved in Sino-German economic and trade exchanges. With such close economic and trade ties, cross-border asset allocation and tax compliance have become the core issues of wealth management for HNWIs.
Recently, Beijing King&Capital Law Firm's senior tax advisor Gao Huiyun and Wang Shuafeng successfully designed a tax compliance and management allocation plan for a high net worth client involving a German trust, marking another professional breakthrough of King&Capital lawyers in the field of cross-border wealth management.
The client intended to set up a family trust in China to realize wealth management and inheritance, but due to the fact that some of the client's family members are involved in the German tax status, they are bound to face the double tax impact of China and Germany. In the German trust structure, the trust beneficiaries are subject to estate and gift tax, capital gains tax and income tax, which are significantly different from the Chinese tax system. How to choose the appropriate trust management model, designate the appropriate trust beneficiaries and set the appropriate trust distribution terms will directly affect the tax cost of the trust. Ms. Gao Huiyun and Mr. Wang Shuafeng carefully studied the German tax law and jurisprudence, and completed the consultation for the family client, designing a unique trust structure and management and distribution terms, which helped the family client to realize the tax compliance and cross-border wealth needs.
King&Capital Family Trust Law Center has served high net worth clients with tax status in (including but not limited to) the United States, Canada, the United Kingdom, France, Australia, New Zealand, Germany, Mexico, The Gambia, Japan, South Korea, Singapore, Hong Kong, Macao and Taiwan, etc., and has successfully set up FGTs (for U.S. beneficiaries), Grandmother Trusts (for Canadian beneficiaries), and non-residents trusts of other countries in Mainland China. resident trusts, etc.
About King&Capital Family Trust Legal Affairs Center
King&Capital Family Trust Legal Affairs Center (FTLAC) is one of the first institutions in mainland China that specializes in the research and practice of wealth management, especially the legal affairs of family trusts, which is a team full of faith and craftsmanship with both theoretical skills and practical abilities. FTLAC is a leading family trust legal service team in China, with not only cutting-edge theoretical research in the field of wealth management and the ability to develop various types of family wealth management solutions, but also rich domestic and overseas practical experience in the process of long-term cooperation with relevant organizations.
FTLAC has been deeply cultivating in the field of wealth management for more than ten years and has won many honors in the industry. This year, FTLAC has even won awards in the field of “Private Wealth Management” in Legal 500 and “Family Wealth Management” in Business Law, and has been awarded the “Best Family Wealth Management” for many years in a row. FTLAC has developed a wide range of services centered on family and wealth management, including comprehensive family governance and development, domestic and overseas wealth inheritance, family trusts and other service trusts (including but not limited to insurance trusts, equity trusts, employee equity incentive trusts, testamentary trusts, dual trusteeship trusts, special needs trusts and other service trusts), and has also been awarded the title of “The Best Legal Service Provider for Family Trusts” for many years. (including but limited to insurance trusts, equity trusts, employee equity incentive trusts, testamentary trusts, dual trusts, special needs trusts, real estate trusts, debt trusts), family charities, matrimonial and family affairs, legal and tax affairs, corporate governance and corporate compliance, etc., which can provide clients with a comprehensive family governance and development program. We can provide clients with a full range of customized professional legal services in the areas of “people,” “family,” “enterprise,” and “society” to help high-net-worth clients realize the perpetuation of their families and the longevity of their careers.
