Double Ninth Festival, also known as “Festival for the Elderly” on Oct 9, is a traditional festival for caring for the elderly. Now October was designated as “Month for the Elderly” in China, during which all walks of life organized various activities to care for the elderly and carry forward traditional Chinese values.
For an individual, the most important thing is to show filial respect for and express love and gratitude to his or her parents. On Double Ninth Festival of this year, Mr Zhang, who lives in Beijing, expressed gratitude to his parents in a special way: signing an “Anyu Trust” agreement with IB in which his parents are designated as trust beneficiaries and himself as the secondary beneficiary. He put a sum of money to “Anyu Trust” plan, and IB conducts low risk allocation, ensures its stable value appreciation, and offers a certain sum of trust income to his parents for their daily expense.
“My parents are feeling their age while I am busy with my business in other places and cannot accompany them. ‘Anyu Trust’ can meet their basic needs and is also a way to show my filial affection to them.” Mr. Zhang said.
The above-mentioned “Anyu Trust” product is an elderly care financial trust product aimed at high-net-worth individuals based on IB’s “Enjoyable Life” elderly care financial service system. This product draws lessons from design and structure of “family trust”. The trustor delivers trust property in a lump sum and IB provides trust income to the designated beneficiary on a regular basis similar to annuity. And the designated beneficiary has full rights to the property.
Compared with traditional consumption elderly care product, “Anyu Trust” possesses double functions of individual elderly care and family wealth inheritance, and is characterized by flexibility, value appreciation and security. On the one hand, the trustor can make flexible property planning, ensure life quality for parents and show his or her filial affection through prior-agreed property distribution rules, such as designating parents as beneficiaries; designating himself or herself as the beneficiary of the trust property and preparing in advance for old age in the future; designating children as beneficiaries, so as to prepare in advance for children’s old age and set our mind at ease. On the other hand, “Anyu Trust” will entrust a professional team with property management in a market-oriented way, and achieve stable value appreciation of property through low risk allocation and professional management. Meanwhile, based on risk isolation mechanism and reasonable structure, independent operation of each “Anyu Trust” can effectively prevent risks like debt, illegal occupation and marital breakdown, and fully safeguard rights and interests of the beneficiary.
As the first elderly care financial trust product, IB’s “Anyu Trust” attracted a number of high-net-worth individuals at the beginning. Till now 11 transactions have been made and financial property under management has exceeded RMB 80 million.