A trust is one of the most widely used investment vehicles to hold worldwide assets for the benefit of beneficiaries, families and for charitable purposes.
Some of the key advantages of trust structures include:
- To mitigate or avoid tax
- As an instrument of estate planning and inter-generational wealth transfer
- To avoid probate requirements for assets within the trust
- To protect assets (for example, from third party creditors, exchange control or other government interference)
- For the protection of the minors and to preserve family wealth against dissipation
- To circumvent forced heirship provisions
- As a confidential way of holding assets
- To run an individual's business or to own shares in a company
- To benefit charitable and non-charitable purposes
As a flexible way in which to hold assets
Hong Kong Trust Law
Many of the provisions of the Hong Kong Trustee Ordinance operate on an 'opt out' basis which provides the necessary level of flexibility to settlors and their trustees to establish trusts suitable to their specific needs.
In addition, a Hong Kong trust can provide a number of wealth planning benefits without giving rise to a Hong Kong taxation charge on offshore income or capital gains arising from the trust assets.
The relatively simple trust law in Hong Kong is ideal for individuals and where appropriate, corporations, to establish trusts for the purpose of confidentiality, asset protection and tax structuring.
Talk to us about the advantages of other trust jurisdictions.
We offer a full range of services in respect of the establishment and administration of trusts.