How to Better Pass on Family Wealth in the Face of the 'Can't Make It Past Three Generations' Trap?

On the afternoon of November 29, 2021, the Daohua Family Law and Matrimonial Law Firm, led by Director Lawyer Tang Yunhong, held a series of thematic lectures on the topic of "Family Wealth and Inheritance" in conjunction with relevant contents of the Civil Code.

Lawyer Tang Yunhong first elaborated on the meaning of "family wealth and inheritance" at the beginning of the lecture, as well as the significance of realizing the inheritance of family wealth in the context of the implementation of the "Civil Code". Lawyer Tang pointed out that the promulgation of the "Civil Code" has given new definitions to marriage, inheritance, etc., among which the new provisions on the property relationship between spouses and the provisions on the system of estate administrators all reflect hot issues in today's society and are worthy of attention and application. This will directly affect the interests of some groups, and how to achieve reasonable planning of family wealth under the legal environment is a topic worthy of discussion and study, which will also be briefly shared in this lecture.

The Daohua Family Law Firm combined cases encountered in judicial practice, their own experience in handling cases, and profound legal theoretical knowledge, to give a profound and straightforward account. This includes: How the addition of "the income from investments" in Article 1062 of the Civil Code will affect the property division in divorce procedures? How to avoid potential risks, etc. The lecture content allowed participants to have a preliminary understanding of legal issues existing in marriage establishment and potential risks they may face. At the same time, Tang lawyer briefly pointed out that such risks can be reasonably avoided by entering into a pre-marital agreement during marriage establishment, and by signing an intra-marital property agreement after marriage.

At the same time, regarding the inheritance of family wealth, the Daohua Family Law Firm has provided new interpretations and suggestions based on Article 1145 of the Civil Code on the appointment of the executor of the estate. The executor of the estate to some extent avoids various problems that may arise in the inheritance of the estate, but also adds certain thresholds to the inheritance of the heirs. How to reasonably plan the family wealth through trusts, insurance, and other means, so that family members can inherit in a targeted manner, is also the core issue discussed in this lecture.

The special lecture lasted nearly two hours. Finally, the Daohua Family Law Firm illustrated the importance of foresight and early planning in the inheritance of family wealth through a series of vivid cases, allowing the participants to have a deeper understanding of the provisions of the Civil Code regarding family wealth.

By 2021, China has already comprehensively built a moderately prosperous society. Looking to the future, under the influence of the Civil Code, new journeys will be embarked upon in the structural schemes of spousal property relations, wealth management and inheritance of family businesses, and trust equity, etc.