Shinyoung Securities Introduces Trust Products for Tax Savings and Family Dispute Resolution

[Asia Economy Reporter Minji Lee] Shin Young Securities announced on the 14th that it will launch the 'Tax-saving Purpose Family Trust,' which simultaneously addresses the tax-saving concerns and family disputes of high-net-worth individuals.

The Tax-saving Purpose Family Trust is a trust product designed to establish and implement effective tax-saving strategies. It helps in planning to reduce inheritance and gift taxes.

This product is broadly divided into a tax-saving plan and a trust agreement. The tax-saving plan calculates the client's retirement funds needs and formulates a plan to save on inheritance and gift taxes according to their situation. The trust agreement serves as a protective measure to ensure that inheritance and gift plans are smoothly executed according to the client's wishes.

For example, retirement funds can be protected through the trust's asset protection function, allowing expenditures solely for the settlor. Additionally, by utilizing the guardianship trust function, potential misuse of assets by a guardian can be prevented. Assets other than retirement funds are planned for tax-advantageous distributed gifting. In the case of rental real estate, the trust function grants rights such as lease contracts and property disposal to one person, preventing conflicts of interest among beneficiaries. Assets to be inherited by children or third parties are divided according to the settlor's pre-planned wishes at the time of inheritance commencement, preventing inheritance disputes.

After enrollment, advisory services are provided. They review whether changes in tax laws affect the established inheritance and gift plans, and for clients who deposit stocks, tax-saving strategies for capital gains tax on stock transfers are provided.

Oh Young-pyo, Head of the Family Heritage Division at Shin Young Securities, explained, “The Tax-saving Purpose Family Trust combines tax-saving plans with trust execution functions,” adding, “It is suitable for high-net-worth individuals who need plans to save on gift and inheritance taxes while preventing family disputes.”