Trusts in Hong Kong are governed by the Trustee Ordinance and common law. They establish a tripartite relationship involving the settlor, trustee, and beneficiaries. Trusts separate legal ownership, held by the trustee, from beneficial ownership, held by the beneficiaries. The trust’s operation and management are guided by the trust deed and relevant laws. Trustees have fiduciary duties toward the beneficiaries and must act in their best interests. The appointment of a protector provides oversight and supervision of the trustee’s exercise of powers. For a trust to be valid, the Three Certainties—intention, subject matter, and beneficiaries—must be present. Trusts offer advantages such as asset protection, succession planning, confidentiality, and potential tax benefits. Hong Kong law recognizes the separation of ownership, making trusts a valuable tool for asset safeguarding, although their effectiveness can be influenced by specific creditor remedies and circumstances.
For more detailed information, you can refer to the following link: Hong Kong Trusts