The tide of bankruptcy is coming. How can we avoid it?
2024-8-23
Recently, many "bankruptcy concern groups" and "bankruptcy groups" have been popular on Facebook, reflecting the poor economy. Many former rich and famous people, such as the "Bo X Family", "X Ba King", famous speculators, etc., have fallen one after another, or are on the verge of falling. The tide of bankruptcy came like a flood. Is there any way to avoid it?
As the saying goes, there are always highs and lows in doing business. If you manage your risk well on good days, you won't be afraid of big waves at low times. Risk management is actually a basic knowledge, basic skills, and basic safeguards for businessmen.
How to control the risks of doing business? A very effective way is to set up a family trust.
The family trust actually transfers the legal ownership of the entrepreneur's assets to the name of the trustee through a contract. The trustee handles the assets according to the terms in the trust contract and regularly distributes the assets to the beneficiaries. In this way, the assets are isolated from the entrepreneurs themselves, forming a firewall. When entrepreneurs face business risks, their assets can be used safely. To effectively establish a family trust, it needs to be established before the risk arises. If it is done only when there is an emergency or debt, the trust may be overturned by the court. Therefore, if you want to use trusts for risk management, you must do it as early as possible and at a good time.
As a risk management tool, family trusts can, in addition to business risks, also avoid divorce risks, inheritance risks, and even "lost family" risks, etc., and have a wide range of applications.
Accountant Edward So is the president of the "International Asset and Risk Management Association" and has extensive experience in establishing family trusts. If you have any questions about family trusts or want to know more, please feel free to contact us.
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