Becoming Rich with Daily Scavenging APP-Chapter 510: Family Trust

Chen Yiyang originally thought they would be debating with the other party in the hotel for a long time.

So he called his lawyer, asking him to come over and help resolve the issue.

Unexpectedly, Ms. Hou received a phone call afterward; who knows whom she talked to about what topic, but her expression quickly changed. She confessed she had mistaken him for someone else and wanted to conclude the matter as soon as possible.

Since the plaintiff said so, and there’s no false accusation crime domestically, the matter naturally ended just like that.

Thus, the two signed a mediation agreement, indicating that the issue would not have any follow-ups.

After Ms. Hou left, Chen Yiyang’s lawyer arrived.

"Why did you come in person?" Chen Yiyang asked curiously, looking at Zhang Yida who was wearing pajama bottoms and a suit jacket. 𝓯𝙧𝓮𝓮𝒘𝓮𝙗𝙣𝒐𝒗𝒆𝓵.𝓬𝓸𝒎

Since Chen Yiyang started to prosper, Zhang Yida had been responsible for handling his legal affairs.

Because of this, their meetings had become less frequent, as Zhang Yida was too busy.

Chen Yiyang had many legal issues across his businesses that required Zhang Yida’s personal assistance to resolve.

"I heard you were in trouble, so I rushed over here," puffed Zhang Yida, "fortunately, nothing major happened."

"Let’s go, let’s have a drink then." Chen Yiyang wasn’t in the mood to continue with the celebration party, so he invited Zhang Yida to a pub for drinks.

The two chatted about their recent situations, Zhang Yida glanced at his phone, then handed it over to Chen Yiyang.

"The latest news in the circle explains why Ms. Hou left in such a hurry."

Chen Yiyang took the phone to look.

He found a lawyer group chat Zhang Yida was in discussing a matter.

It involved Ms. Hou’s seemingly virtuous father, who was now exposed to have actually had three illegitimate children during his lifetime, two sons and a daughter, all foreign citizens.

They had now formally started contending with Ms. Hou for the family assets.

At this moment, Ms. Hou naturally didn’t want anything else to complicate her decisions, nor to continue any conflict with Chen Yiyang.

However, Chen Yiyang felt that the previous false accusation from the other party could be due to her being bothered by this issue recently, and having wrongly identified him as a minor character to vent her frustration.

Chen Yiyang had no interest in the family dramas of others.

The struggle over inheritance among the illegitimate children of wealthy families was nothing new.

Yet in the midst of this matter, Chen Yiyang noticed the family trust left by the old chairman to his three illegitimate children was breached.

Originally, these three illegitimate children had a family trust of over ten billion US dollars, but Ms. Hou directly transferred more than one hundred million US dollars from the account, proving that the account remained under her control.

So, out of curiosity, Chen Yiyang asked Zhang Yida about the reason.

"This matter is quite complex," Zhang Yida thought about it and answered Chen Yiyang. "Because the most traditional family trust actually hands all the money to a professional manager to handle, and the beneficiaries can’t interfere with the account funds, only receive dividends as agreed.

This is why family trusts can avoid taxes or dodge debt collection, because legally and nominally, the money in the trust no longer has any relation to you and your family.

Even if the professional manager takes this money and invests in a company that everyone knows is about to go bankrupt, the beneficiaries can’t stop it.

Because it’s not your money, the profits and dividends earned are your money.

But this leads to one problem, which is whether dividends can be received smoothly every year, all depends on the conscience of the professional manager.

Once the manager harbors ill intentions, it’s easy to legally launder away the money.

For example, if a company is about to go bankrupt, but still owes a creditor one billion without the funds to repay.

The creditor approaches the professional manager, promising them a profitable business worth fifty million.

Then the professional manager can invest one billion of the family trust’s money into the bankrupt company. Once the investment is completed, the company immediately declares bankruptcy.

Then this one billion can legally be taken by the company’s creditor."

"If that’s the case, why are family trusts so popular in Europe?" Chen Yiyang asked curiously. "I just don’t believe all professional managers have high personal ethics."

"Because in Europe, family trusts, in a sense, resemble the ancient clan properties in Huaxia. Both the trustee and the manager handling the trust are actually related in many ways, being familiar associates within a social circle.

In such cases, family trusts are very reliable, because everyone is on the inside; if you mess around, you’ll face social death, completely abandoned by the circle.

These professional managers already have decent income, and it’s unnecessary to take such risks. If it leads to public outrage, who knows, one day, they might be shot dead.

But it’s clearly different domestically; the trustee can’t leverage the social circle to doom the manager socially or hire someone to kill the manager.

Thus, stealing trust assets among those managers is highly probable.

Once similar news emerges many times, and family trusts are no longer deemed fully reliable domestically, wealthy people started preferring self-management of trust accounts, with managers only executing tasks but having no decision-making power.

The upside is there’s no worry about managers stealing the trust money, but the downside is legally, this being recognized means the trust money is still considered yours since you can control it entirely.

If you accumulate debts, the creditors can breach the trust and seize the trust money.

That’s why some media say certain rich individuals’ trust was breached, due to this reason."

Once Chen Yiyang understood the intricacies, he abandoned the thought of establishing a family trust in the future.

Indeed, there’s no perfect plan in the world.

Rather than laboriously creating a family trust, it’s better to do business steadily.

As for whether descendants will squander the wealth, let fate decide, for the world where rich become poor and poor become rich is normal.

If the rich are forever rich and the poor forever poor, then problems arise.

After speaking with Zhang Yida.

Chen Yiyang woke up the next day and checked his phone.

Today’s intelligence, Mushroom Packaging: a natural material research company in the Imperial Capital is seeking investment, investing in them now is a steal.

Contact details of relevant personnel have been attached on the second page.

Mushroom, packaging?

Chen Yiyang seemed puzzled seeing these words in the intelligence.

How are mushrooms and packaging related?

He asked his assistant to look into the company, which was located in the suburbs of the Imperial Capital, not too far away.

So Chen Yiyang had his assistant schedule an afternoon company visit.

He was very curious about the company’s products, so he planned to go and see for himself.