Best Trusts Lawyers in Sheung Wan

About Trusts Law in Sheung Wan, Hong Kong

Trusts law in Sheung Wan, Hong Kong is primarily governed by the Trustee Ordinance and the Perpetuities and Accumulations Ordinance. Trusts are a legal arrangement where a person (Settlor) places assets under the control of another person (Trustee) for the benefit of individuals (Beneficiaries) or for a specified purpose. Trusts in Hong Kong may be created for wealth management, asset protection, mobility, privacy, tax planning, and succession planning.

Why You May Need a Lawyer

Creating, managing, or dispute resolution associated with a Trust involves complex legal processes that can be difficult to navigate. A lawyer can provide valuable assistance in drafting trusts agreement, understanding the tax implications, managing legal risks, and ensuring that your intentions as a settlor are adequately reflected in the arrangements. In addition, if you are a beneficiary, a lawyer can help you understand your rights and interests under a Trust.

Local Laws Overview

Local laws governing Trusts in Hong Kong underwent a significant change with the enactment of the Trust Law (Amendment) Ordinance 2013. With the introduction of this amendment, the perpetuity period was extended up to 120 years for general Trusts, and Trustees were imbued with enhanced powers and duties. In addition, Hong Kong does not have any inheritance or capital gains tax, making it an attractive jurisdiction for establishing a Trust.

Frequently Asked Questions

1. Can anyone set up a Trust in Hong Kong?

Yes. Anyone, regardless of nationality or residence, can establish a Trust in Hong Kong, provided the trust deed is in compliance with the Hong Kong Trustee Ordinance.

2. Are Trusts in Hong Kong subject to taxes?

No. Trusts in Hong Kong are not subject to a specific Trust tax. However, any income derived from the assets of the trust may be liable for profit tax.

3. Is there a minimum amount required to set up a Trust?

No, there is no legislative stipulation on the minimum amount needed to set up a Trust in Hong Kong.

4. How long can a Trust exist in Hong Kong?

With the 2013 amendment, the perpetuity period for Trusts in Hong Kong has been extended to 120 years.

5. Can a Trust be revised or revoked?

Yes, a Trust can be revised or revoked, but the procedures and circumstances greatly depend on the terms set out in the Trust Deed.

Additional Resources

The Hong Kong Trustee's Association (HKTA) offers a wealth of information and resources pertaining to trusts law in Hong Kong. In addition, the Companies Registry and the Hong Kong Judiciary provide guidance and regulatory information on trusts.

Next Steps

If you require legal assistance with regards to a Trust, the best step would be to consult a lawyer or legal practitioner specializing in Trusts Law in Sheung Wan, Hong Kong. It is crucial to ensure you understand your responsibilities, rights, and the tax implications of setting up or being involved in a Trust.