Trust Planning

What is a Trust ?

A Trust is a legal arrangement that allows a person known as ‘the settlor’ to give the right to another party, the trustee, to hold his assets such as shares, money and property for the benefit of a third party, the beneficiary. A Trust can be used to determine how a person’s assets being managed and distributed while the person is alive or after their death.

Why do we need to have one ?

To preserve wealth within families.

To protect infant child, handicapped person and person of unsound minds.

To draw up a set of guidelines on how the beneficiary going to get the estates, mainly at what age or with what conditions.

To protect assets from creditors.

To prevent overnight millionaires.

Setting up a Trust is a very powerful financial tools used widely by high net worth individuals in Western countries like UK and Japan to protect and grow their wealth. They normally used Trust to isolate their assets, manage their liabilities, mitigate their divorce risk and at the same time grow their wealth steadily. Trust is a proven way towards successful wealth management and succession.

Example of some of high net worth individuals who set up Trust.

  1. Anita Mui with her total net worth nearly HK$100 million, set up a Trust for her mother, providing HK$70,000 monthly for her mom living expenses.
  2. Steve Job set up a Trust to avoid inheritance tax.
  3. China richest woman, Wu Yajun setting up a Trust before her divorce and upon divorce she manage to protect her company’s operations being affected.

For more details, please fell free to contact us for a free consultation now! We can assist you to mitigate this unforeseen circumstances.

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