What is Trust?
A fiduciary relationship between Client (Settlor) and Trust company (Trustee). Client authorizes the Trust company to hold his/her property or manage his/her asset for the benefit to the Beneficiary. The Trustee shall commit to Settlor’s will and interest of Beneficiary to hold and manage such properties and assets, while the Beneficiary shall be appointed by the client
Is Trust only applicable for HNWI (High-Net-Worth Individual)?
In our view, any individual’s property and asset should be protected by Trust service. However, in the past, only High-Net-Worth Individuals enjoyed such services due to the high set up and maintenance fees.
What is Hong Kong Fiduciary Association Limited’s belief and business philosophy?
(1) Lower threshold – Trust service was widely used by High-Net-Worth Individual in the past, thus our goal is to increase the popularity of Trust service.
(2) Asset protection - Hong Kong Fiduciary Association Limited aims to offer high level of assets protection and security, being legally binding by related trust legislation and Law in Hong Kong.
How the identity of asset is hidden by Trust?
Nominally, the Trust properties and assets are transferred to and managed by the Trust company. However, a legally binding Trust Deed between client and the Trust company shall indicate that the properties and assets are essentially owned by the client.
Why client hopes to hide the asset identity through Trust?
Certain risks shall be separated when Trust company hold the property and asset on behalf of the client. For instance, business may encounter a legal dispute or a debt problem; the purchase of property may be limited by restriction or taxation; there is risk of dispute if property and asset are held by family member or friend. However, such risk shall be minimized when property and asset are held and managed by Trust company.
How to ensure the safety of heritage assets?
Beneficiary is clearly designated by the client from time to time pursuant to the terms of the Trust Deed. In the event of mishaps, Beneficiary shall have the right by Deed to claim all or any of his interest in the Trust. Safe heritage of assets shall be accomplished subject to strict regulatory and related Hong Kong laws.
Why Trust in Hong Kong offers high level of protection and security?
Trust in Hong Kong has more than 100 years of history; such service has been regulated by Hong Kong laws for 70 years. Trust company in Hong Kong is required to obtain the Hong Kong Trust License in order to be regulated by related Hong Kong laws. Therefore, client’s property and assets will be securely protected.
How Hong Kong Fiduciary Association Limited popularizes Trust?
Establishment of a Trust includes an initial set up fee of USD150, 000 to USD200, 000 and a 2% annual management fee, indicating that traditional trust service are exclusively accessible for High-Net-Worth Individual. Despite the large population in Mainland nowadays, there are only 5% of population are using Trust (Hong Kong Trust service is commonly used). Moreover, there are only 68 Trust companies in China. Hong Kong Fiduciary Association Limited plans to lower the threshold on entrance for the Trust service in China.
How client achieves high flexibility on asset management through our Trust service?
Hong Kong Fiduciary Association Limited work closely with over 30 global Investment Banks and tailormade different diversified investment solutions according to the client’s need and level of asset, in order to achieve considerable and sustainable revenue.
If client has little investment experience, what solution can we offer?
If client has little investment experience, we are willing to provide different global integrated investment solutions. Client shall enjoy all the advantages of Trust service, and meanwhile, client shall permanently extract the highest fixed return of similar products among China and Hong Kong.