Taiwan Embraces 'Century Trust' Era to Combat Wealth Loss Across Generations

Taiwanese families are set to benefit from a significant reform in wealth inheritance, with the government finalizing rules for a "century trust" system. This new framework will permit trusts to operate for up to 100 years, provided certain conditions are met. The initiative aims to address the persistent challenge of wealth dissipation across generations, often summarized by the phrase "wealth does not pass three generations." Under the new regulations, subsequent beneficiaries can receive their inheritance as stipulated in the trust agreement without incurring gift or estate taxes. This move is expected to provide wealthy families with a powerful and legal tool for long-term tax-efficient wealth preservation and transfer. The Executive Yuan recently concluded cross-ministerial consultations on the taxation of trusts with continuous beneficiaries, paving the way for this landmark change in Taiwan's financial landscape. The Liberty Times reported on this development.