Trust has become the choice of more and more high net worth individuals. When choosing a trust, should we choose the mainland trust or the Hong Kong trust? So what is the difference between mainland trust and Hong Kong trust？ In Europe, America and Hong Kong, trust is a tool for estate planning and wealth transmission. So what are the differences between domestic and Hong Kong trusts?
Professional trust services for high net worth individuals, with the professional quality of trust practitioners to bring you this domestic trust and Hong Kong trust introduction.
Hong Kong trust PK domestic trust: development history
The Chinese trust law was promulgated in April 2001 and came into force on October 1, 2001, only 18 years.
Hong Kong, on the other hand, inherits the British trust law, which has a longer history and a comprehensive legal system matching the trust.
Hong Kong trust PK domestic trust: product features
The purpose of the early introduction of the domestic trust mechanism was to provide financial and technical support for the country's economic construction at the beginning of the reform and opening up. It is dominated by business trust, supplemented by civil trust and charitable trust. The essence of business trust is investment and financial products, while the essence of civil trust is property management. Absence of a sound legal framework may cause trust disputes.
The purpose of the Hong Kong trust is to better implement wealth segregation and inheritance. With explicit private trust as the main purpose, supplemented by statutory trust and charitable trust, the explicit nature of private trust is to set up according to the explicit statement for private interests, which can not only effectively prevent the assets from being swallowed up, but also carefully manage for future generations, complete the inheritance of family property, and achieve the vision of the foundation and lasting prosperity.
Hong Kong trust PK domestic trust: property segregation and security
Because domestic and Anglo-American law system is different, the trust assets do not have dual ownership. If you want to practice the wealth isolation and set up the people in mainland, investors often need to spend more cost and building more complex structure of the trust, to accomplish this goal, which is why the domestic civil trust developed too late.
Hong Kong trust is entrusted to the trustee manages property, each document must be certified by a lawyer, Assets received by trust companies must be kept and bookkept separately, to ensure that no matter in any time. The trusted asserts do not become a part of the company's total assets or mixed with the company's total assets. The trusted assets entitles legal ownership by the trustee, so that all benefits from its assets are owned by the beneficiary. Not only is it an effective way to control the profligacy of beneficiaries, but it also protects wealth from creditors, malicious claimants and divorce.
Hong Kong trust PK domestic trust: privacy protection
Domestic civil trust can only come into effect through trust publicity. First, the trustor should be publicized to transfer his or her lawful property to the trustee, and then the trust should be publicized. Such trust privacy is completely non-existent and cannot play the role of privacy protection.
The Hong Kong trust is protected by the personal data (privacy) ordinance, and the contents, terms and properties of the contract are strictly confidential and never disclosed to the public, which greatly protects the privacy of customers.
Tannet is a professional business service outsourcing company, serving the world of business professionally and reliably since 1999. Tannet provides HK trust set up services and business follow-up services include bookkeeping, tax return, annual return services, internal auditing, financial planning and tax layout. We strongly believe that we are the right partner who can assist you when you are ready to expand your business worldwide.
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