Hong Kong Offshore Trust Why Form an Offshore Hong Kong Trust? Hong Kong Offshore Trust is one of the most popular trust formations in this region. The Trust law which regulates Hong Kong trusts runs almost parallel to that of English Trust Law. The “Trustee Ordinance Act” is modelled almost directly on the English Trustee Act 1925 making it a desired location for foreign offshore investors as it ensures a high level of confidence in Hong Kong’s legal framework. Hong Kong, a developed financial centre, portrays a highly attractive jurisdiction to create a trust. It has a significant system enabling the deferral of tax liabilities. Moreover, Hong Kong establishes itself as enforcing a high level of anonymity, which is a readily sought after feature for potential settlors. As Hong Kong boasts a stable and dedicated political framework, ones assets will be well protected if placed in an offshore trust in Hong Kong. What constitutes an Offshore Hong Kong Trust? Although trusts are primarily used by high net worth individuals for the protection of their private wealth, and to provide for their children or other future generations, it is a common misconception that only high net worth individuals can create a trust. In actual fact, a trust serves as a highly attractive feature for the purpose of asset protection. Furthermore, potential inheritants cannot make claims against the trust and the assets of the trust cannot be seized. Many people want to safe guard their assets, as a settlor, you can transfer any assets and legally declare he does not own them. Some of the more popular Hong Kong Trusts - Fixed trusts - Discretionary trusts - Asset protection trusts, although often created, are not always the best option for Hong Kong as this particular jurisdiction has not adapted its Trust laws for the benefit of such trusts Advantages of Offshore Trusts in Hong Kong Hong Kong is a largely desired location for offshore trusts being that it is a highly profitable and productive financial centre. It has a strong political and financial framework and it has not taken a deep financial dip during the recession as some other jurisdictions have suffered. Further advantages of having a Hong Kong trust are: - Non-discriminatory low tax regime - Generous tax deductible allowances - Documents do not have to be registered - There is no statutory requirement for trusts in Hong Kong to make annual returns - No statutory requirement for a trust to submit an audited financial statement - Effective tax planning - Consolidation of ownership of assets to one desired location - Centralised reporting and management of assets - Foreigner ownership is permitted - High level of anonymity, which most individuals opening a trust primarily seek - There is no inheritance tax or forced heir ship rules - Avoiding probate - There are no exchange control regulations - High level of Asset protection and wealth management Call us at +6-012 372 8289 to find out further on this exceptional tool can help in preserving your legacy.
Posted on: Thu, 18 Jul 2013 15:00:54 +0000
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