Lawyer Huang Huili’s legal mailbox (twenty-four)

Lawyer Huang Huili’s legal mailbox (twenty-four) 1. Question: You can enjoy a tax exemption of 5.12 million yuan this year. I would like to ask whether setting up a trust can avoid inheritance tax and...

> Lawyer Huang Huili’s legal mailbox (24) 1. Question: You can enjoy a tax exemption of 5.12 million yuan this year. Can I avoid inheritance tax by setting up a trust and how should I plan it? Answer: Now may be the most appropriate time to set up a trust (Trust), because in 2012 each person enjoyed an estate tax or gift tax exemption of 5.12 million yuan, which will change on January 1, 2013. Therefore, if you carefully plan the property you will leave to your children in the future and take advantage of the lifetime gift tax exemption of NT$5.12 million, the couple can enjoy a tax exemption of NT$10.24 million. A general trust is a contractual relationship between the grantor and the trust executor. The biggest restriction of the contract is that once the grantor establishes the trust, he will give up all control rights and withdraw all rights to the trust. Otherwise, the IRS will consider that the trustee is evading taxes in the name of the trust and does not meet the conditions for the gift tax exemption of RMB 5.12 million. Even with such restrictions, trust creators can still use different types of trusts to achieve personal tax savings and legal security purposes. The most commonly used trust is an individual's life insurance, and its beneficiaries are children. This is the most common and least controversial one. The biggest advantage of a trust is that it is a contractual relationship between the two parties. If a simple will is used to transfer property, without any dispute, there is not much difference except for the difference in tax exemption. A will must go through a court's probate process. Once it enters the legal process, it is more time-consuming to achieve the purpose of transferring the estate. 2. Will the Immigration Bureau basically approve all regional centers? Answer: It depends on the situation. Recently, the Immigration Bureau’s ruling on investment immigration applications was inconsistent with past explanations and explanations, resulting in a lawsuit. 18 plaintiffs filed a case against the Immigration Service (Carlsson v. USCIS) in the U.S. District Court for the Central District of California on September 13, 2012. USCIS revokes its approved investment immigration petition (I-526) and denies pending cases. This is a New Commercial Enterprise (NCE) that renovates warehouses and commercial real estate. The Immigration Bureau believes that this application has the following problems: The acquired real estate and renovation costs deposited in the escrow account do not appear to have used investor funds, which makes people mistakenly believe that the funds are not deposited in the notarized escrow account. The business plan does not include enough detail, such as when tenants will move into the building, the cost of purchasing the property and renovations, and a market analysis of the rental property. The regional center uses the IPLAN system to estimate job creation opportunities based on tenant occupancy estimates. Immigration considers that employment created by the tenant does not count because it is inappropriate to assume that future employment in unrelated business activities may be created by the tenant. The Immigration Bureau said that when investors put their money in NCE, there is no risk to the funds. It does not guarantee that all investment funds will be used to carry out NCE's business. There is risk to achieve the purpose of return. Go from the initial projected (assumed) number of tenants to the actual number of tenants, expand the project, and use some of the funds to update adjacent properties. The Immigration Bureau believes that job creation must be established in the business plan, and is opposed to using the method it uses to determine the number of jobs created. Prior to this year, USCIS accepted estimates based on tenant occupancy. As for the use of investment funds, it will not be discussed until two and a half years after the investment immigration application is approved, when the temporary green card is converted to a formal green card (I-829). Therefore, the lawsuit once again revealed that the immigration policy of the Immigration Bureau is inconsistent, and investors must be particularly careful when choosing investment projects.