In recent years a series of significant changes were brought to the trust law in Hong Kong. The Government has implemented a few changes meant to modernize the approach to trusts and trustees. This has strengthened Hong Kong’s position as an asset management and financial center in Asia.
The Trustee Ordinance is the main legislative document to consider when setting up a fund or appointing a trustee or asset management company. Other related trust laws may apply and it is best to request the services of a law firm in Hong Kong for a complete summary of the domestic trust law applicable in the city.
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The trust regime in Hong Kong
Trusts in Hong Kong do not have a specific amount of time during which they can operate. This restriction was removed when the trust law was updated. This can be a great advantage for investors in Hong Kong who can now create a trust that has no time limit.
The city does not impose forced heirship rules and this is another important advantage, meaning that families who choose to set-up trusts in Hong Kong benefit from a greater degree of flexibility compared to that available in other trust jurisdictions. Trustees in Hong Kong can appoint an asset management company in order to administer the trust.
Trusts in Hong Kong
Foreign investors who want to open a trust in Hong Kong have a wide range of options and services to choose from. Commercial trusts, pension funds, charitable trusts or family trusts are all available for incorporation. Hong Kong is a very important trust service center in Asia and it serves Chinese clients who want to set-up offshore family trusts. Private and testamentary trusts are commonly used but charitable ones are also a good option.
The trust document or trust deed can be drawn up to meet various criteria and the beneficiary (trustee) can be appointed as many powers as needed to distribute the trust assets. These matters can be discussed and arranged with one of our lawyers in Hong Kong.
For complete details about the trust reform in Hong Kong, the available types of trusts and their particularities please do not hesitate to contact our law firm in Hong Kong.