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Trust Service In Hong Kong

With a long history of over 100 years of the Trust Law and being part of the British Common Law, Trust has become a sophisticated financial tool for wealth management. Trust provides safety, capital growth and smooth inheritance to your wealth.

Hong Kong is a world known free port and an international trading and financial centre, tremendous wealth has been created from the vibrant commercial activities by local and foreign businessmen in the territory. As such, the need for Trust has been growing.

Hong Kong has many factors in favor of Trust. It has low taxation, linked exchange rate system of Hong Kong Dollar and US Dollar, rule of law, no restriction to funds coming in and going out of the territory. These altogether have made Hong Kong an international hub of Trust. Looking ahead, trust service will continue to expand fulfilling the needs of individuals and families.

Advantages Of Hong Kong Trust

  • Hong Kong Trust has a long history of over 100 years without a single case of collapse or bankruptcy of the trustees in the territory during the period.
  • As an International Financial Centre in Asia, Hong Kong is a hub of wealth management.
  • Hong Kong has global vision, rich financial market information and diversified trust products.
  • Hong Kong has sophisticated banking service, no foreign exchange control.
  • Rich expertise in financial service
  • Given a long history of over 100 years from 1903, Hong Kong Trust Law is comprehensive and sophisticated.
  • Once a trust plan is set up in Hong Kong, the asset in the trust account will be protected under the law of Hong Kong and free from interference of foreign jurisdiction regardless of the nationality of the settlor.
  • As registration is not required for Hong Kong trust, the privacy of settlor is thus effectively secured.
  • 「Hong Kong Privacy Ordinance」 protects the privacy of settlor’s personal data. Trustees will not disclose such information to any country, authority or institution under the Ordinance.
  • Trustees registered in Hong Kong are under the direct supervision of the Financial Secretary of the Hong Kong SAR Government.
  • The operation of Hong Kong trustees is under the supervision of various authorities such as the Financial Secretary of the Hong Kong SAR Government, Securities and Futures Commission, Hong Kong Federation of Insurance simultaneously depending on the asset involved in the trust.
  • According to 2013 Hong Kong Trust Law (Amendment) Ordinance, the trust account of Hong Kong is valid permanently whereas there is an expiry of trust account in most Common Law jurisdictions (e.g. Malaysia - 80 years; Singapore - 100 years; United Kingdom - 125 years). So, Hong Kong Trust can provide asset safety, capital growth and inheritance of legacy without a time limit while the trust of other jurisdictions provides the same service in a limited period of time.

Stronger Protection for Beneficiaries

  • New amendment provides better protection to beneficiaries and their interests.

Hong Kong trust is perpetual

  • Hong Kong trusts have no expiry. Alternatively, settlors can still choose to specify a fixed trust period – a feature that only few trust jurisdictions can offer.

Hong Kong SAR Government is Stable

  • China’s “One Country, Two Systems” policy for Hong Kong is enshrined in the Joint Declaration between Britain and China.
  • Hong Kong itself has a Bill of Human Rights and is a signatory to most major international conventions on human rights.
  • It has a stable political environment and a long tradition of respecting property rights.

Sophisticated Judiciary of Hong Kong

  • Hong Kong is an attractive jurisdiction from which to administer trusts, with a judiciary experienced in trust law and professionals experienced in private client and public trusts wealth management services. This ensures a high level of confidence in the legal framework, competitive pricing and the protection of assets
  • Hong Kong’s legal system is based on the English common law. Hong Kong’s trust legislation originated in 1934 and is based on English trust law.
  • Hong Kong has sophisticated trust law based on the English Common Law. Courts in Hong Kong continue to follow and apply the case law and judicial precedents of Commonwealth countries. This ensures high level of confidence in settlors.

Enhancement of Trustee’s Default Power

  • When there is no trust deed, trustees may rely upon the default power of trustees stated in Trust Ordinance to provide trust service.

English As Business and Legal Language

  • English is the major business and legal language, used alongside Chinese for doing business in the Chinese-speaking countries of the Asian region. English is widely used in commercial contracts and the judiciary of Hong Kong.

Forced Heirship Protection

  • The forced heirship of a foreign jurisdiction is not applicable to the assets in the Hong Kong Trust.

A Major Financial Centre

  • Hong Kong is one of the three major international financial centres in the world, along with New York and London.
  • Hong Kong has access to a wide range of world class banks and has one of the world’s major stock exchanges.
  • Hong Kong is a party to a wide range of international Tax Treaties.

Sophisticated Investment Infrastructure

  • Availability of a large pool of investment expertise.
  • It is the major centre for investment funds, innovative investment vehicles and IPO’s in Asia, well supported by professional trustees and fund services providers.
  • Hong Kong is strategically and geographically positioned to take advantage of the enormous growth prospects in Asia in the coming years.

International Business and Investment Hub

  • Hong Kong is the gateway to China and the hub of international business in Asia.
  • Hong Kong has one of the best international airports in the world linking up your home and us.

International Standard Professionals

  • Hong Kong has a pool of professionals in the financial service area such as trust service, accountancy, banking, investment, legal counselling, etc).

Benefits Of Trust

Upon transfer of your wealth to your trustee, you, the de facto owner of the wealth, can enjoy a care-free life because your trustee will preserve, grow and distribute your wealth according to your will as stipulated in the Trust Deed.
  • For wealth safety, trust makes prevention of loss of wealth at times of adversity possible simply because it is under the name of your Trustee, not you.

  • For capital growth, trust makes capital growth possible. Your wealth will grow via savvy investment strategy as stipulated in the trustee deed while you are exercising your talent to generate more wealth. You deserve a bigger harvest out of your hardworking.

  • For smooth inheritance of your wealth, trust makes smooth transfer of your asset to your designated beneficiaries possible. You can distribute your wealth to your loved ones, providing better life to your family according to your will as stipulated in the trustee deed.

  • As trust takes away your burden of wealth management, you can focus on your career or business and enjoy your life while your wealth is being taken care of professionally by your trustee.