What risks do high-net-worth clients encounter in wealth preservation and inheritance?

1. Property preservation

refers to the people's court taking compulsory measures to restrict the parties' disposal of the property or the subject matter of the dispute after accepting the case but before making a judgment.

According to Article 101 of the Civil Procedure Law, the applicable conditions for pre-litigation property preservation are:

1. An application that requires pre-litigation property preservation must have a payment content, that is, the applicant's future litigation request must have a property payment content.

2. If the situation is urgent and corresponding preservation measures are not taken immediately, the applicant's legitimate rights and interests may suffer irreparable losses.

3． The interested party shall file an application for pre-litigation property preservation. Interested parties are those who have disputes with the respondent or who believe that their rights have been violated by the respondent.

4. Applicants for pre-litigation property preservation must provide guarantees. If the applicant fails to provide a guarantee, the People's Court shall reject the applicant's application for property preservation before filing a lawsuit.

2. What I understand as wealth inheritance is to safely pass on property to one’s descendants. Tools for wealth inheritance: including insurance, wills, trusts, offshore trusts, family funds, and entrustments. The entrustment includes entrustment by lawyers, notaries, and relatives and friends. Another one is identity arrangement, charitable foundation. The meaning of wealth inheritance: one is the continuous management of property, and the second is the continuous benefit of family members. The combination of tools for wealth inheritance: trusts, insurance, lawyers and wills constitute the four basic tools for wealth inheritance. Specific examples: such as planned transfer of equity, conditional property transfer agreement, planning to establish a legacy subsidiary, planning to purchase education pension annuity, purchasing life insurance, offshore investment and trust, family limited partnership, etc., are all possible Alternative methods. Print money, create inflation, and make the money in people's pockets thin.

So, the risks in wealth preservation and inheritance of foreign high-net-worth individuals are passed on through insurance, which can be relatively stable. Preserve wealth and pass it on to the next generation reasonably. Therefore, under the system of "one country, two systems", Hong Kong insurance has become a popular target among mainland high-net-worth individuals. It can reasonably protect wealth and break the rumor that wealth cannot last more than three generations.