Help Teacher Wu supplement:

CN
Phyrex
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2 days ago

Help Teacher Wu supplement the following:

First of all, trusts come with costs, and these costs are not low. The maintenance and operational costs are quite high, and the more well-known the team, the more expensive it is.

Secondly, finding a good management leader is extremely difficult. It's hard to get someone with a name and reputation, and it's not just about throwing money at them to secure their services.

Lastly, there are many pitfalls with trusts. In Singapore, there have been cases where trust managers colluded with teams to misappropriate funds. Not to mention the withdrawals; many trusts not only fail to make money but actually incur significant losses.

Many of my friends misunderstand trusts, thinking that they are just for managing funds for future generations. However, this is not entirely accurate.

The main functions of a trust are related to family risk, tax risk, and cross-border risk. Personally, I believe that for "ordinary, not very complex" high-net-worth families, trusts may be less beneficial than insurance.

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