Amid an era of increasingly diversified wealth succession needs, Liuhe has, through its solid legal expertise, cross-disciplinary resource integration, and forward-looking service philosophy, provided comprehensive and bespoke wealth succession solutions for private entrepreneurs — from legal structuring to implementation — achieving notable results and client satisfaction.
Recently, Senior Partner Mr. Zhao Jianbing and Lawyer Ms. Yu Linqiong of Liuhe successfully assisted multiple families in realising their objectives of secure intergenerational wealth transfer and sustainable family enterprise development. Addressing complex legal risks and crises arising in matters of inheritance, marriage, debt, and succession, the team engaged actively in both crisis management and risk control, resolving issues through a combination of litigation and non-contentious measures. They utilised a range of legal and financial instruments to formulate and implement comprehensive succession plans, ensuring peace of mind for entrepreneurs and their family members alike.
(Client information has been anonymised for confidentiality.)
Following the sudden passing of Mr. Z, the actual controller of a listed company, without a will or prior arrangements, the family faced multiple challenges including share inheritance, complex estate composition, succession planning for the next generation, asset distribution, and continuity of family values.
Upon engagement, Liuhe lawyers acted promptly to ensure a smooth transition by:
(1) Emergency Response: Convening a family meeting, forming a special task group, and clarifying the scope of the estate and the rights of heirs;
(2) Strategic Planning and Execution: Designing succession schemes for the listed company shares and other business assets, coordinating generational handover, and implementing a holistic family wealth succession framework.
The T Family held substantial domestic and overseas assets. With the next generation unwilling to assume management roles, it became necessary to mitigate debt exposure and succession complexities.
Liuhe lawyers adopted a comprehensive legal-financial approach to achieve the client’s succession objectives through:
(1) Risk Isolation: Establishing domestic family and testamentary trusts to construct a “debt firewall”;
(2) Cross-Border Coordination: Facilitating the creation of offshore trusts for compliant global asset management;
(3) Corporate Governance: Amending company articles and governance mechanisms to prevent management deadlocks;
(4) Service Outcome: Significantly improving the client’s asset security and control over the succession process.
Mr. L, a controlling shareholder of a listed company, sought to transfer restricted shares and provide benefits to multiple family members. However, with his children residing abroad and uninterested in succession, succession planning became challenging.
Liuhe lawyers developed a multi-dimensional, legally grounded solution by:
(1) Structural Design: Creating a hybrid “cash trust + equity testamentary trust” scheme to comply with restricted-share regulations;
(2) Cultural Continuity: Drafting a Family Charter to codify governance rules, core values, and behavioural standards, complemented by regular family gatherings to strengthen cohesion;
(3) Resource Integration: Establishing a family office to coordinate legal, financial, and educational affairs, ensuring sustainable family development;
(4) Service Outcome: The plan achieved a balance between compliance and family objectives, earning high praise from the client: “We hope our lawyers will continue to accompany our family for generations to come.”
Given the potential debt and matrimonial risks arising from Mr. M’s ownership of more than ten private enterprises, Liuhe lawyers implemented a dual-layer risk isolation strategy through innovative legal design:
(1) Corporate Risk Isolation: Defining clear boundaries between family and corporate assets, constructing a firewall to prevent the contagion of business liabilities;
(2) Matrimonial Risk Prevention: Structuring pre-emptive asset arrangements through agreements and trusts to mitigate disputes arising from potential marital changes.
Additionally, Liuhe lawyers designed customised family trust frameworks and personalised trust models integrating various inheritance tools to balance stakeholder interests, safeguard core family rights, and achieve the client’s strategic objectives.
Liuhe has earned profound client trust by consistently upholding its “Client First” philosophy through the following measures:
(1) In-Depth Needs Assessment: Conducting “family profiling” research from the first consultation to identify explicit and latent needs with precision;
(2) Tailored Solutions: Rejecting template-based approaches — every succession plan undergoes multiple rounds of evaluation and scenario testing to ensure full alignment with the client’s unique circumstances;
(3) Continuous Commitment: Establishing a follow-up mechanism to monitor implementation outcomes and promptly adapt to regulatory and market developments.
At present, the firm’s wealth succession clients include controllers of listed companies, heads of private business groups, cross-border entrepreneurial families, and ultra-high-net-worth individuals, with total assets under advisory management exceeding tens of billions of RMB.
Through this work, Liuhe lawyers and their clients have come to share a common philosophy of legacy and purpose:
“Peace of mind is where one’s true purpose endures.”
Wealth succession is not merely the transfer of assets, but also the continuation of family spirit and business civilisation.
Liuhe lawyers, wielding law as a shield and expertise as a spear, embody craftsmanship in every detail and convey warmth through every engagement.
Looking ahead, Liuhe will continue to deepen its practice in the wealth management and family office sectors, offering more innovative and globally attuned solutions to help more families realise their vision of enduring legacy and lasting prosperity.
