Private Trusts

“A world of Trust Solutions for Natural Persons”

There are a huge variety of Trusts available to meet the specific needs of your situation. Whether your needs are related to success and estate issues, the need to manage a family’s multi-generational assets. creditor proofing your assets, holding an asset during a conveyance, operating a business while ownership disputes are litigated. Indeed, there are as many types of Trusts as there are needs to establish them. A Trust is established and governed under deeds or declarations of Trust. Trust Deed and declarations are drafted specifically pertaining the underlying needs or conditions of a given situation.

A trust allows you (the settlor) to entrust your assets to the trustees for the benefit of your beneficiaries. It is the responsibility of the trustees to take control of, manage, and ultimately distribute the assets to your beneficiaries.

There are a number of reasons you may consider creating a trust:

  • To control how and when your assets are distributed and to whom. This can help avoid probate and forced heirship on your death.
  • To mitigate your potential liability to certain taxes, such as income tax, capital gains tax and inheritance tax.
  • To ensure that plans for your estate adapt to potential changes in your family circumstances.
    Why use a discretionary trust?
  • Passing on your wealth – You, as the settlor, can write a letter of wishes specifying how you would like the trust to be used. Whilst not binding, this can provide you with reassurance over how the trust assets will be used.
  • Avoiding probate – Assets held within a trust are legally owned by the trustees on behalf of beneficiaries. This avoids the need for probate on your death and the subsequent delays associated with administering the estate.
    Eliminating forced heirship – Depending on where you live, you may not be entirely free to decide who may benefit from your estate when you die. In many countries (such as Argentina, Brazil, Spain and France), laws of succession define specific rights for heirs, known as forced heirs. The law in the Isle of Man (Manx law) recognises an individual’s right to create a trust under Manx law, even if your home jurisdiction does not.
  • Ensuring the right people benefit from your assets – A discretionary trust can help you ensure your assets are passed on to those who you want to receive them.
  • Complex families – You may wish to ensure all assets are held only for the benefit of your own children, rather than any step-children, or similarly for the benefit of your current spouse/partner and not for an ex-spouse/partner.
  • Trust confidentiality – The terms of a trust, unlike those of a will, are private and can offer greater confidentiality. This can be particularly useful in complex family situations.
  • Professional trustees – Using a corporate trustee service can give you peace of mind that the assets will be dealt with in a professional and unbiased manner.

Retail Trust Services

A registered Hong Kong trust Company is entitled to provide retail services that mirror most of the services available through a traditional bank. Services offered may include savings accounts and payment or wallet systems which replace the typical chequeing accounts. Beginning with our QIVE App once our Hong Kong trust company registration is completed, we will expand the retail basket of services to include a full range of credit and payment systems based in your smart phone. A whole new world of services is coming your way.

Family Trusts
Family Trusts are established to meet the ongoing need to control and manage the assets of High or Ultra-high net worth families.

Retirement Trusts
Retirement Trusts regulated by the Mandatory Provident Fund Authority in Hong Kong including Occupational Retirement Schemes which are available in both exempt and no exempt form. (the exemption pertains to the type of assets held in the trust.)

Discretionary Trusts
Discretionary Trusts have long been used in Family situations to ensure that assets are deployed appropriately in situations where the circumstanced going forward may be subject to change or simply unknown. One of the facets of a discretionary trust is that assets held under the Trustees Discretion are legally held in the name of the trust, with the beneficiary to be named from a group of potential beneficiaries. As a result, the assets do not form part of the beneficial owners balance sheets until such time until the Trustee has designated which beneficiary will own an asset. the means that for taxation purposes and under common reporting standards these assets are non-reportable until a Trustee designation has been made. Recent changes made in the Hong Kong Trust Ordinance make discretionary trusts a more powerful tool than ever before.

Creditor-Proof Trusts
Entrepreneurs and Professionals, planning ahead, often use either Insurance or Trusts to “Creditor Proof ” personal of family assets in the event of future events or potential liabilities.

Matching a Trust to Your Needs
Whether creating the trust during your lifetime or through a Will, selecting the trust type and its terms are very important. There are many different variations variations available selecting the right characteristics is critical to matching your needs.

Different trust types have differing tax effects which must also be considered. For maximum flexibility it is usual to give the trustees wide management powers so that they are better able to respond to any changes in family matters or taxation – not least changes in Government. With such wide trustee powers be sure to choose your trustees carefully.