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Understanding the Trust and Fiduciary Services in Hong Kong
Trust and fiduciary services typically involve the transfer of property or other assets to another party and are categorized into various types, with the most common one being a will. Hong Kong is a hub of wealth management and has a solid legal system that is able to provide good trust and fiduciary services.
Appointing a professional trust company as the trustee in Hong Kong is a great way to ensure that your trustees are specialists with extensive experience in trust formation and management. Trusts are a good tool for wealth management and provide safety and capital growth.
Why Set Up a Trust?
Trusts can serve as powerful tools to ensure wealth and asset management. It serves to protect assets and ensure that they are passed on to specific loved ones. Investment strategies and wealth management tactics can also help to grow assets.
Advantages of Hong Kong for Trust and Fiduciary Services
Due to Hong Kong’s status as an international trading and financial centre, the need for professional trust services has been growing.
Hong Kong has a well-built system for trusts and fiduciary services because:
1. It has a good legal system based on British Common Law to enforce trusts
Hong Kong has a long history of over 100 years based on British Common Law, thus being able to benefit from a solid legal system that can enforce trusts and settle any contentious issues. Professional trustees can rely on extensively written laws and cases to clarify legal uncertainties and ensure that trusts go as planned.
2. Forced heirship from foreign jurisdictions do not apply to trusts made in Hong Kong
Forced heirship is a rule in civil law systems that determines which heirs are entitled to receive the assets of a deceased person. When forced heirship rules apply, an individual cannot freely dispose of their assets as they see fit, hence differing fundamentally from trusts.
3. Hong Kong trust laws allow settlors to retain substantial control over trust assets
Settlors can reserve certain control and power over trust assets without jeopardizing the legality of the trust.
4. Trusts can be set up in perpetuity
In a manner of speaking, trusts in Hong Kong can remain for a long time, hence benefiting arrangements that seek to preserve wealth for a long line of descendants.
5. Hong Kong has low taxes and an extensive network of double taxation agreements
This is ideal for assets as there will be less tax burden.
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Interested in trust and fiduciary services in Hong Kong?
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