OFFSHORE TRUSTS

An offshore trust jurisdiction should offer easy and convenient capital movement. Hong Kong has no foreign exchange controls and many of the world's international banks operate branches in Hong Kong. This in turn ensures free movement of capital in and out of the territory through established banking relationships. At the same time, since 1983, the HK Dollar has been pegged to the US Dollar, offering stability in valuation.

As may be expected for an offshore trust jurisdiction, Hong Kong offers tax advantages.

Placing the shares of a non-resident (offshore) company within a Hong Kong trust can offer significant advantages in respect of income and capital gains tax during the settlor's lifetime, as well as potential inheritance tax charges on death.

An offshore trust jurisdiction must offer legal certainty and must conform with international standards. In this regard, Hong Kong meets the requirement.

Hong Kong operates a common law based legal system. Save in respect of matters of national security and foreign affairs, this system is separate from the legal system of the mainland of the People's Republic of China (“PRC”). It is a system that is familiar to not only to trust practitioners and lawyers around the world but also to entrepreneurs and businessmen from around the world.

Hong Kong trusts have over 100 years of history. Hong Kong's trust legislation originated in 1934 and is based on English trust law. It continues to share common law principles in respect of trusts with Commonwealth jurisdictions.

The Hong Kong courts have substantial experience in trust law and are highly regarded for their competency, professionalism and independence. Trust law decisions of the Hong Kong courts are highly respected and frequently cited by the courts of England as well as the courts of other Commonwealth jurisdictions.

This track record provides settlors with the highest level of confidence in Hong Kong trusts.

An ideal offshore trust jurisdiction should have a well developed wealth management ecosystem. In this regard, Hong Kong offers one of the most highly developed wealth management ecosystems in the world.

Home to deep pool of lawyers, accountants and asset managers, Hong Kong is a regional hub for many of the world's international law, accounting and financial advisory firms. The deep bench of law firms and accountancy firms with expertise in trust law, tax law, and investment activities means that settlors setting up a trust in Hong Kong can expect access to broad and deep expertise in wealth management and to a wide range of investment products.

Hong Kong's wealth management ecosystem means that all trust operations can be operated conveniently from Hong Kong in a single time zone under a single legal system. Investment operations, including the trading in currencies, shares, bonds, commodities and dealings in private equity, hedge funds and other financial products.

Hong Kong is the gateway to mainland China and the hub of international business in Asia. It is strategically and geographically positioned to enable trusts operated from the city to take advantage of the enormous growth prospects in Asia in the coming years.

An estate planning trust is typically a confidential arrangement. In contrast, the contents of a will, including the plan for distribution and the amount of assets within the estate, may be made public in the course of probate.

With minimal regulatory barriers and renowned infrastructure,

Hong Kong has:

• NO RESIDENCY REQUIREMENTS
• NO MINIMUM TRUST FUND VALUE
• CONFIDENTIALITY AND PRIVACY