I'm back in 1990

Chapter 1117: Benefits in Multiple Dimensions

At 2 p.m., Fila Pan arrived on time at Huang Xiaochuan's office on the 78th floor of the Global Trade Building.

She is a woman of Eurasian descent in her early fifties. She appears very serious and capable, the epitome of an old-fashioned professional manager.

"Hello, Mr. Huang!" she said, extending her hand in a perfect London accent.

"Ms. Pan, welcome." Huang Xiaochuan stood up and shook hands with her.

Huang Xiaochuan was quite satisfied with the strength of the handshake, which indicated that the person knew how to maintain appropriate boundaries.

Besides Fila Pan, Gao Wenbin and Chen Zhicong also came to this office.

Gao Wenbin is in his forties. He speaks slowly and deliberately, but every word he says is to the point. He is a lawyer with excellent eloquence.

Chan Chi-chung is a Hong Kong man in his fifties, short and stout, who seems very amiable. But Wong Siu-chuen knows that he has worked in the Inland Revenue Department for more than ten years and is known as a meticulous person who "cannot tolerate any nonsense".

After everyone was seated, Charlie Cho asked Phila Pan to start.

Fila Pan came prepared; she connected her laptop to the office projector, and a beautiful PowerPoint presentation immediately appeared on the screen.

"Mr. Huang, I'd like to take five minutes to share a story with you."

Huang Xiaochuan nodded slightly, indicating that he could.

"In my second year at the Rockefeller family office, my boss, an old gentleman who had worked in the family office for thirty years, took me to meet an older member of the Rockefeller family at the time. That old gentleman was over eighty years old and was the core of the third generation of the family."

He told me, "If a family's wealth is only about money, it will be wiped out within three generations. What can truly allow a family to continue for a long time is the scientific inheritance and the transmission of the family's history to future generations."

Therefore, I suggest incorporating a family archive into the structure of your soon-to-be-established family office. This archive will house your family's historical records and facilitate regular family gatherings, allowing your descendants to learn about the family's origins.

She paused for a moment, then added, "There's a tradition in the Rockefeller family that every summer, family members gather at the family estate, where the eldest family member tells the children about the entrepreneurial history of the elder Rockefeller."

After listening, Huang Xiaochuan remained silent for a while.

After a long pause, he finally spoke: "Ms. Pan, your suggestion is very good, but I think that the inheritance of a family cannot rely solely on stories and sentiments; systems and rules are the most important."

"As you wish." Fila Pan nodded.

She then turned to a new slide in the presentation and continued, "In my view, a family office is essentially a super-capable steward with extremely comprehensive functions. It can assist families in managing wealth and investments, achieving risk diversification and long-term appreciation of family assets. It can regulate family succession and governance, clarifying the rights and obligations of family members through the formulation of family regulations, and ensuring the orderly transfer of wealth and business within the legal framework."

Huang Xiaochuan nodded in agreement, which was also why he wanted to establish a family office.

Seeing this, Fila Pan pressed on: "The benefits of setting up a family office are multi-dimensional, and I summarize them into four dimensions."

First, family offices can provide a one-stop solution, handling complex matters such as immigration for family members, corporate taxes, and the separation of marital property among family members.

Second, family offices can effectively isolate core family assets from the personal marital and debt risks of family members through legal structures such as family trusts, making them more resilient in the face of external shocks.

Third, family offices not only manage funds, but also people and relationships. Through mechanisms such as family meetings, drafting family charters, and establishing family committees, they can provide a communication platform for family members, reduce internal friction caused by wealth distribution, and solidify family values ​​through philanthropic planning and the education of the next generation.

Fourth, a top-tier family office will be comprised of professionals from leading financial institutions, law firms, and consulting companies, including investment experts, tax specialists, and human resources consultants. This is equivalent to building a dedicated think tank for your family, providing the highest level of professional support.

This is exactly what Huang Xiaochuan wanted. The traditional Chinese model of father-to-son succession is no longer suitable, especially when it involves such a huge sum of money.

Fila Pan concluded by saying, "Mr. Huang, the size of your assets dictates that you must have a sufficiently strong governance system to support them, just like a country with a large economy cannot be governed by a traditional corporate structure."

The second person to appear was Gao Wenbin.

The second person to appear was Gao Wenbin.

He immediately offered a suggestion from a legal perspective: that an oversight committee should be established.

He stated, "The oversight committee will be composed of external legal experts who will not have decision-making power, but only advisory and veto power. In other words, they can prevent family offices from making mistakes, such as transferring family assets to individuals, engaging in speculation beyond their risk tolerance, or violating family regulations."

Huang Xiaochuan found this unacceptable, believing that the veto power should be held by the Huang family.

So he frowned: "Isn't this too much power? Let's put this aside for now and reassess it."

"Okay!" Seeing that Huang Xiaochuan had doubts about the suggestion, Gao Wenbin did not insist any further.

Afterwards, Huang Xiaochuan discussed with them the principles for formulating family laws, the composition of the family committee, the compensation structure of the family office, and the future operating model of the family foundation.

Each issue involves a large number of details, so each detail needs to be carefully considered. Gao Wenbin raised more than a dozen questions that need to be clarified from a legal perspective.

Chen Zhicong offered suggestions on the registration location of family offices from a tax perspective, suggesting three places: the Cayman Islands, Singapore, and Hong Kong. Each of these places has its advantages and disadvantages and requires further evaluation.

The meeting ended more than four hours later.

Under Charlie Cao's arrangement, the group had a simple dinner together.

During the meal, Fila Pan chatted with Huang Xiaochuan for a few minutes.

She put down her knife and fork, wiped her mouth with a napkin, and said, "Mr. Huang, I'm curious, you're only forty-two years old this year, why are you starting a family office so early? As far as I know, most wealthy people only consider succession issues after they turn sixty."

Huang Xiaochuan took a sip of water: "I'm tired. I've accomplished in just over twenty years what others take over a hundred years to create. That's enough for me."

Everyone fell silent. Fila Pan said softly, "You're the least forty-something-year-old billionaire I've ever met?"

Huang Xiaochuan smiled, neither confirming nor denying.

Seeing this, Fila Pan continued, "I feel that you possess a rare maturity that completely transcends your age."

Huang Xiaochuan remained silent. He couldn't say, "I'm not mature, I've just lived one more lifetime than you."