A family trust may be established as a tax trust to minimize or defer tax liabilities. A tax trust may offer tax advantages to the settlor as well as to beneficiaries. A tax trust can be structured so that assets placed into the trust belong neither to the settlor nor the beneficiaries. This means that potentially neither the settlor nor the beneficiaries may be liable for taxes on those assets or taxes on income arising from those assets.
Hong Kong trusts, in particular, can offer substantial tax advantages as Hong Kong trust can be structured so that no income tax is payable in respect of income earned outside Hong Kong, capital gains or dividends.
The establishment and operation a tax trust however, requires experienced lawyers and trustee as the laws of many jurisdictions make specific provision of trusts with a view to limiting availability of tax planning strategies.
If you are interested in appointing us as a new trustee or helping you to setup a trust or if you are interested in learning more about whether a family trust may be right for you or how a family trust may be used for tax planning,estate planning or wealth preservation, please contact us.
We help high net worth individuals and their families to understand whether a family trust is right for them.
We work hand in hand with clients throughout the process of setting up a family trust, advising on options to minimize taxes, to plan for the orderly distribution of wealth to future generations and to protect family wealth from creditors as well as matrimonial disputes and other conflicts within the family.
We provide advice on techniques for family leaders to maintain control and influence over the assets placed into trust, including the identity of the trustee.
We can act as the trustee, help family members or friends who are selected to act as trustees to meet their obligations under the law or help clients to set up a Hong Kong private trust company as a captive trustee for the family trust.
+852 2899 0190
+852 2899 0120
enquiries@timothyloh.com
Suite 1008, 10th Floor St. George's Building 2 Ice House Street Central, Hong Kong
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