For high net worth people, investment is very necessary. Who has no assets overseas? Then, if there are a lot of overseas assets, how to inherit them more efficiently? How can inheritance save more costs? The answer is-trust! Yes, in Europe, America, Hong Kong and other places, trust is a tool for estate planning and wealth inheritance. So, what's the difference between domestic trust and offshore trust (referring to trust established outside China)? Which do the rich people like best nowadays?
Hong Kong Trust PK Domestic Trust: Development Course
China's trust law was promulgated in April 20001year, and came into effect in June of the same year, with a history of only 17 years.
Hong Kong, on the other hand, has inherited the British trust law, which not only has a longer history, but also has a perfect legal system that matches the trust.
Hong Kong Trust PK Domestic Trust: Product Function
The purpose of introducing domestic trust mechanism in the early stage is to solve the urgent need for capital and technical support for national economic construction at the beginning of reform and opening up. Mainly commercial trust, supplemented by civil trust and charitable trust, the essence of commercial trust is investment and wealth management products, and the essence of civil trust is property management. However, without the guidance of laws and regulations and without a sound legal framework, it is easy to cause disputes. Once there is a problem, it takes time, effort and money!
The purpose of the establishment of Hong Kong Trust is to better separate and inherit wealth. Giving priority to express private trust, supplemented by statutory trust and charitable trust, the essence of express private trust is that the founder established it according to express private interests, which can not only effectively prevent assets from being embezzled, but also carefully manage the future for future generations, complete the inheritance of family business and realize the vision of lasting success.
Hong Kong Trust PK Domestic Trust: Property Isolation and Security
Because the domestic and common law systems are different, there is no dual ownership of trust assets. If we want to separate wealth, founders often need to spend more money to build a more complex trust structure in China to achieve this goal, which is also an important reason why domestic civil trusts can not land.
Hong Kong Trust entrusts the trustee to manage the property, and each document must be certified by a lawyer. The assets raised by a trust company must be kept and accounted for separately, so as to ensure that they will not be part of or mixed with the total assets of the company at any time. The nominal legal ownership of the assets belongs to the trustee and the beneficial ownership of the assets belongs to the beneficiary. It can not only effectively control the profligacy of beneficiaries, but also prevent wealth from being affected by creditors, malicious claimants and divorce.
Hong Kong Trust PK Domestic Trust: Privacy Protection
Domestic civil trusts need to be publicized before they can take effect. First of all, it is necessary to publicize that the client has transferred his legal property to the trustee, and then publicize the establishment of the trust. This kind of trust has no privacy and can't protect privacy at all.
The Hong Kong Trust is protected by the Personal Data (Privacy) Ordinance. The contents, terms and nature of the contract are strictly confidential and will never be made public, which greatly protects the privacy of customers.
Let's introduce some questions about trust here. The above answers are for your reference. I hope I can help you. Welcome everyone to praise us and pay attention to us. Thank you.