How to Become rich over three Generations?

A classic western style country mansion, a “all the wicked” rich family party, a just over 85 years old birthday, with a dagger to end his life of the literary tycoon old man, a heart, coveting the identity of the inheritance of the two generations of descendants…
Three years ago, “Knives Out”, a suspenseful blockbuster about a battle over a wealthy family’s inheritance, was a strong performer, garnering critical and box-office success around the world. Why has it touched audiences in so many countries? The main reason, is around the don Harlan left behind a huge amount of property, human greed and selfishness and strategies to deal with, one by one revealed.
The desire for wealth is a constant in human nature. For the head of a powerful family, how to achieve a more orderly distribution of family property should be the first item on his to-do list before leaving the world, the urgency is self-evident.
Princess Diana prepared for a rainy day

For the old British royal family, the dignity and dignity of the family must be defended. Now with her husband prince harry from the royal megan markel, with the British royal family has potential into fire and water, and her during a princess, but has repeatedly wearing and princess Diana similar clothing modelling, salute to her mother-in-law, so arbitrary and high-profile megan, acting was so many British people at its surface to from the royal family, Has actually been riding the latter heat to make money.
It is believed that Queen Elizabeth II will think of her late daughter-in-law Diana on many occasions when she was planning to divide her inheritance.
Last year, the fourth season of Netflix’s hit drama the Crown won best Drama series at the 78th Golden Globe Awards. Emma Collins, who plays Princess Diana, also won the Golden Globe for best actress in a leading role for her portrayal of the princess and her struggles in a “crowded three-way marriage,” a nod to the “Eternal English Rose.”
Born into an Aristocratic Family in England, Diana, the youngest daughter of the 8th Earl spencer, was no stranger to the concept of family trusts from an early age. When she returned to London after completing her studies in Switzerland, she bought the flat she lived in with money from a trust fund – which was available when Diana turned 18.
In the same way, Diana bequeathed her two sons a fortune that would ensure a lifetime of security, thanks to the professionalism and familiarity with the trust.
In 2018, after Prince Harry’s wedding to American actress Meghan, who is three years older, reportedly cost 300 million yuan, it caught the attention of the wealth management world that Prince Harry had refused to sign a prenuptial agreement when it came to his true love.
For a while, the outside world was moved by prince Harry and Princess Meghan’s true love. But it soon found that things are not so simple: one of the main property of prince harry, whose mother, princess Diana is set the heritage trust beneficial right, given that the independence of the trust property, the property of prince harry more embodied in the allocation of the heritage trust interests, its not easy because the beneficiary and converted into common property of husband and wife.

One of Prince Harry’s main assets is an interest in the estate trust set up by his mother, Princess Diana.

Princess Diana in The Crown

It all goes back to the 1990s, when Princess Diana was still alive and preparing for a rainy day for her two young sons.
It was 1993, the year after Diana, then 32, separated from Prince Charles. In order to ensure the security of her estate and ensure that it can be passed on to her children at the appropriate time, she made a testamentary trust in that year.
In the will, which was successfully executed, Princess Diana asked for her estate to be set up in a trust after her death. Her two sons, Prince William and Prince Harry, will share equally in the trust’s proceeds as beneficiaries.
The will also states that Prince William and Prince Harry will have free access to the proceeds of the estate from the time they turn 25 and the principal from the time they turn 30. The terms of the will also allow the princes to adjust the proportion of their assets by mutual consent.

Princess Diana’s 12-carat sapphire engagement ring

By setting up a testator trust, Diana disposed of the estate as she wished, excluding her husband, Prince Charles, from the inheritance and avoiding the brothers’ bitter feud as portrayed in the movie Knives Out the Sheath.
Before her death, Princess Diana was worth about 220 million yuan, including shares, jewelry, clothes, personal effects from her kensington Palace apartment and cash from her divorce from Prince Charles.
In August 1997, princess Diana’s trust was set up immediately after her sudden death. After withholding inheritance tax of 86 million yuan, the trust took over a total of 130 million yuan.
The Trust for princess Diana’s estate, run by its trustees for a decade, had generated almost £10 million by William’s 25th birthday in 2007. When the latter turned 30 in 2012, he officially inherited his mother’s fortune of about 101 million yuan. The total value of prince Harry’s estate is estimated to be about 108 million yuan, thanks to the trust’s investment profits and interest increases.
Prince Harry and Meghan markle made allegations of racism and unequal treatment of the British royal family during an interview with OPRAH. In the interview, Prince Harry said he was traumatised by losing his mother at an early age and wanted to avoid his wife becoming a second “Princess Diana”.

Ironically, harry and His wife stopped supporting them financially after they announced their separation from the royal family and relinquished their titles; The biggest source of income for the couple is princess Diana’s estate trust, which provides for their family’s security and standard of living.
From this point of view, Princess Diana, who was deeply trapped in the bondage of royal marriage, left her two young children suddenly in the end, but she still did not forget to pave the way for them to trust her love. In a touching detail, The Duchess of Cambridge wore Princess Diana’s 12-carat sapphire engagement ring to the royal wedding of Prince William on April 29, 2011.
Diana is understood to have included a special wish letter in her will to divide all her jewels equally between her two future daughters-in-law. No wonder Prince William was moved to say: “This is my way of making sure my mother hasn’t missed the big day in my life. She will be there to witness our joy and excitement.”
Trump avoids $500 million estate tax

Today, when the family trust that Princess Diana set up nearly 30 years ago is revived, it is hard not to lament that the long-term prosperity and stability of a family cannot be separated from the foresight of the actual controller.
Rockefeller Jr. ‘s family trust, which stipulated that heirs could only pay dividends and not use the principal until they were 30.

Prince William (l) and Prince Harry are seen on July 1, 2021 in London, England

Until the night of the crash in 1997, no one expected Diana’s sudden death to happen like this. If there is no testate trust and her estate is distributed only by legal succession, prince Charles, as his son’s guardian, is likely to get his hands on it. This is what she did not want to see when she was alive, having broken with her husband.
For Princess Diana’s two sons, this vast fortune, if handed to them before they reach adulthood, would have been much diminished by a lack of professional management and allocation. Although William and Harry had their share of negative affairs growing up, they were supervised and guided by the manner and timing of their mother’s inheritance in trust.
There is no doubt that the establishment of trust and the selection of trustees with financial management ability are obviously more conducive to the preservation and appreciation of property in the inheritance of wealth.
What else do family trusts do? According to a report by The New York Times in 2020, Trump used the GRAT family trust, adjusted asset valuation, split equity and other means to shrink the family’s real estate empire worth $900 million to $41.4 million, perfectly avoiding estate taxes of nearly $500 million. The world’s first billionaire, was born at Rockefeller family, and the second generation successor established small Rockefeller family trusts, regulation successor before the age of 30 can only share out bonus, not the principal, to ensure that the family property and control people marriage to paralyze the stake disputes, stock price shocks, and even enterprises such as catastrophic risk.
In China, people are increasingly aware that family trust with flexible interest distribution mechanism can provide more scientific support and encouragement for the growth and career of family members, and ensure the harmonious distribution of family property within the family, which is conducive to the realization of family goals. On March 30 this year, UBS Securities announced to launch domestic family trust information services and other relevant programs to China’s high net worth clients, marking the first step for foreign securities brokers to seize the domestic family trust market in China.
Although the epidemic situation has not been completely reversed, it is seen in the industry that thanks to China’s long-term steady economic growth, the needs of hnWIs to cope with intergenerational inheritance are also on the rise. According to public data, despite the black swan of the epidemic, the scale of new family trusts in China’s trust industry still reached nearly 13 billion yuan in January 2022, up 33.5% year on year.
With the normalization of the epidemic in recent years, uncertainties in both the macro economy and the inheritance of wealth are increasing. For rich families, succession planning is more advanced; At the same time, how to legally and reasonably transfer the huge amount of property safely to the next generation is also an important problem they are facing.

Share