What is a trust?

A trust is a legal arrangement in which one party, known as the "settlor" or "grantor," transfers ownership of assets (such as property, investments, or money) to another party, known as the "trustee." The trustee holds and manages these assets on behalf of a third party, known as the "beneficiary," according to the terms and conditions specified in the trust document.

Trusts are established for various purposes, including estate planning, asset protection, charitable giving, and managing assets for the benefit of minors or individuals with special needs. They can provide a way to distribute assets, provide ongoing financial support, and manage property over time while potentially avoiding some of the complexities and costs of probate.

Types of Trust

There are different types of trusts, each with its own characteristics and purposes. The specific terms of a trust, such as the distribution of assets, the powers and duties of the trustee, and the rights of the beneficiaries, are outlined in the trust document.

Revocable Living Trust

This type of trust is set up during the grantor's lifetime and can be altered or revoked by the grantor. It is often used to avoid probate and provide for the seamless transfer of assets upon the grantor's death.

Irrevocable Trust

Unlike a revocable trust, an irrevocable trust cannot be easily changed or revoked once established. It is often used for asset protection, estate tax reduction, and Medicaid planning.

Testamentary Trust

This trust is created through a person's will and comes into effect upon the person's death. It can be used to manage assets for minor children, individuals with special needs, or beneficiaries who may not be able to manage their inheritance on their own.

Charitable Trust

Charitable trusts are established to benefit charitable organizations while providing potential tax benefits for the grantor. They can be used for philanthropic purposes and to reduce estate and gift taxes.

Special Needs Trust

This type of trust is designed to provide for the financial needs of a person with disabilities without jeopardizing their eligibility for government benefits.

Family Trust (or Dynasty Trust)

These trusts are often used to provide for multiple generations of a family, allowing assets to be distributed to beneficiaries over time while potentially minimizing estate taxes.

Key Points About Trust Setup Services in Hong Kong

Creating an offshore trust in Hong Kong offers a valuable means of bulletproof safeguarding and managing wealth and assets within a trust structure. Tailored for family and investment planning, an offshore trust facilitates seamless succession planning with peace of mind.

Opting for an offshore trust establishment streamlines wealth and asset management, ensuring a smooth transition to chosen successors. Effective administration and management of trust assets can lead to reduced tax liabilities, while asset distribution aligns with the settlor's intentions rather than court mandates.

Why Hong Kong as Trust Jurisdiction?

Following the enactment of amendments to the Trustee Ordinance and the Perpetuities and Accumulations Ordinance in 2013, Hong Kong now has a modern and competitive common law trusts regime, making it one of the most attractive destinations for trusts planning in Asia. Hong Kong is often chosen as a trust jurisdiction for several compelling reasons:

Robust Legal System and Judiciary

Hong Kong boasts a robust legal framework based on the English common law system. This stability and familiarity provide a reliable foundation for trust-related matters.

Political and Economic Stability

Hong Kong has a long history of political and economic stability, making it an attractive location for managing and safeguarding assets.

International Financial Center

As a renowned international financial hub, Hong Kong offers a wide range of financial services, expertise, and institutions to support trust-related activities.

Tax Efficiency

Hong Kong does not levy capital gains tax, estate tax, or inheritance tax. This favorable tax regime can be advantageous for wealth preservation and succession planning.


Hong Kong law provides privacy and confidentiality for trust-related matters, offering a level of discretion that many individuals and families seek.

Currency Stability

The Hong Kong dollar is pegged to the US dollar, contributing to currency stability and facilitating international transactions.

Legal and Regulatory Framework

Hong Kong's comprehensive legal and regulatory framework for trusts ensures that trust structures are well-defined and respected, providing a secure environment for wealth preservation.

Asset Protection

Hong Kong trusts can offer effective asset protection against potential creditors and legal claims, enhancing the security of your wealth.

Global Connectivity

Hong Kong's strategic location and connectivity facilitate cross-border business and wealth management, making it a preferred choice for international families and investors.

Professional Services

A wide range of qualified legal, financial, and trust professionals are available in Hong Kong, ensuring a high level of expertise and guidance.

Why Set Up an Offshore Trust in Hong Kong

Reliable Preservation and Protection

A well-structured trust operates under regulated laws, assuring beneficial management of assets and guaranteeing the private trust's reliability as a trustee for safeguarding wealth and assets.

Conflict Resolution

Proficiently managed private trust adeptly navigate succession complexities and inheritance disputes, accurately interpreting trust documents and executing settlor intentions.

Financial Accountability

Private trust are accountable for meticulous financial record-keeping and maintenance, ensuring assets' value endures over time.

Early establishment of a trust secures wealth and asset preservation, empowering arrangements for future beneficiaries. Prudent administration minimizes tax burdens, aligning asset distribution with personal preferences rather than legal standards.

Choosing a Competent Trustee in Hong Kong

A trustee assumes a fiduciary role, making pivotal decisions in beneficiaries' best interests. Rigorous criteria guide the choice of a trust management service provider, given their significant control and responsibilities.

A reputable trust management service provider should:

  • Hold a valid Trust or Company Service Provider Licence (TCSP) in compliance with Hong Kong regulations.
  • Accurately interpret legal trust documents, professionally administering trust asset distribution.
  • Skilfully manage trust finances, diligently preparing records, statements, and tax returns.
  • Maintain transparent, professional communication with beneficiaries, ensuring awareness of associated accounts and taxes.

What are the Benefits of Setting Up a Trust?

Setting up a trust can offer a range of benefits, depending on your individual circumstances, goals, and the type of trust you establish. Some common benefits of setting up a trust include:

Asset Protection

Asset protection in a trust involves the strategic transfer of ownership of certain assets into the trust's control, thereby creating a legal separation between you (the grantor or settlor) and the assets. The goal is to shield those assets from potential creditors, lawsuits, and other financial risks.

Asset Management

Trusts provide a structured framework for managing your assets. A trustee, who can be a professional or someone you trust, takes on the responsibility of managing the assets on behalf of the beneficiaries, ensuring they are invested, maintained, and distributed appropriately.

Probate Avoidance

Assets held in a trust generally do not go through the probate process, which can be time-consuming and costly. This allows for quicker and more efficient distribution of assets to beneficiaries after your passing.


Trusts offer a level of privacy that may not be achievable through a will. Trust documents are usually private, whereas wills become public record during the probate process.


Trusts can be tailored to your specific needs and circumstances. You can dictate how and when assets are distributed to beneficiaries, whether it's upon your passing or at specified intervals.

Wealth Preservation

Trusts can help preserve and protect your assets for future generations. By placing assets in a trust, you can ensure they are managed and distributed according to your wishes, avoiding potential challenges or disputes that might arise under normal inheritance laws.

Tax Planning

Certain types of trusts can provide tax advantages by reducing estate taxes, gift taxes, and even income taxes. Trusts can be structured to maximize tax efficiency for both you and your beneficiaries.

Special Needs Planning

Trusts can be set up to provide for the ongoing care and financial support of individuals with special needs, without jeopardizing their eligibility for government assistance.

Control over Distribution

Trusts allow you to have a say in how your assets are distributed, even beyond your lifetime. You can specify conditions for distributions, such as requiring beneficiaries to reach a certain age or achieve specific milestones before receiving assets.

Business Succession

For family-owned businesses, trusts can facilitate a smooth transition of ownership and management to the next generation, ensuring the business's continuity.

Last but not least, Peace of Mind

Knowing that your assets will be managed and distributed according to your wishes can provide peace of mind and reduce stress for you and your loved ones.

Why is Asset Protection in a Trust is Essential for You

Potential creditors and liabilities stem from various sources, including business obligations, tort damages, regulatory claims, and divorce. In any possible litigious environments, asset protection is vital for shielding affluent individuals and families from aggressive legal pursuits. Offshore Trust-based asset protection is thus a versatile tool that:

  • Deters litigation and offers effective resolution.
  • Ensures absolute asset ownership confidentiality.
  • Serves as an alternative to conventional pre-nuptial agreements.
  • Safeguards against exchange controls and promotes financial flexibility.
  • Facilitates a fresh start for insolvent debtors.
  • Mitigates forced heirship laws (common in Europe) and facilitates controlled wealth transfer.
  • Enables tax-efficient wealth transfer to heirs.
  • Internationalizes investments, hedging against instability and threats.
  • Separates ownership of low-risk and high-risk assets, minimizing potential liability claims.

The Structured Wealth Preservation Trust for Middle Class Individual and Family in South East Asia – SEA MIDDLE CLASS HK TRUST I

A structured trust refers to a trust that follows predetermined and standardized terms, provisions, and guidelines. These trusts are often created with a set framework that is applied uniformly to multiple individuals or families. They are designed to accommodate common financial and estate planning needs without extensive customization.

SEA Middle Class HK Trust, under the purview of GreenPro Trust Limited and distributed exclusively by Marvel Capital, offers impeccable protection for your assets due to the independent trustee’s mandate over the trust assets and distributions. A family ’s success in sustaining its wealth from one generation to another is inevitable, and it requires careful planning and implementation.

For middle-class individuals and families, structured trusts can be important for the following reasons:


Structured trusts are typically more cost-effective to establish and administer than highly customized trusts. This can make them accessible and practical for middle-class individuals seeking basic estate planning and asset management.


Standardized terms and provisions simplify the trust creation process. Middle-class individuals may find it easier to navigate and understand these trusts compared to more complex arrangements.

Time Efficiency

Structured trusts can be established relatively quickly due to their standardized nature. This can be beneficial for individuals who want to put their estate plans in place efficiently.

Common Objectives

These trusts are designed to address common financial goals such as wealth preservation, avoiding probate, and providing for loved ones. Middle-class families can benefit from these standardized solutions without the need for extensive customization.

Asset Protection

Structured trusts can offer asset protection, even with standardized terms. They may include provisions that shield assets from potential creditors or legal claims.


Like other types of trusts, structured trusts offer privacy by keeping the distribution of assets out of public probate records.

Basic Estate Planning

Middle-class individuals may not require highly complex estate planning strategies. Structured trusts can provide the basic tools needed to ensure assets are distributed according to their wishes.

Embark on your path to preserving wealth through trusts with us. Contact us for more information and start securing your financial future today.