Set up a Revocable Reserved Power Trust
To set up a Revocable Reserved Power Trust (RRPT) in Hong Kong, you will need to:
Choose a trustee. The trustee is the person or company that will be responsible for managing the trust assets and carrying out your instructions. It is important to choose a trustee that is experienced and trustworthy.
Draft a trust deed. The trust deed is the legal document that sets up the trust and defines the terms and conditions. The trust deed will specify the assets that are being transferred to the trust, the beneficiaries of the trust, and the powers that you are reserving to yourself.
Transfer assets to the trust. Once the trust deed is signed, you will need to transfer assets to the trust. This can be done by signing a transfer of ownership agreement.
Register the trust. There is no requirement to register trusts in Hong Kong. However, if you are transferring assets to the trust that are located in another jurisdiction, you may need to register the trust in that jurisdiction.
Once the trust is set up, you will have a number of powers that you can reserve to yourself. These powers can vary depending on the terms of the trust deed, but some common reserved powers include:
The power to amend or revoke the trust deed
The power to appoint and remove trustees
The power to add or remove beneficiaries
The power to direct the investment of trust assets
The power to distribute trust assets to beneficiaries
It is important to note that RRPTs in Hong Kong are governed by the Trustee Ordinance (Cap. 29). The Trustee Ordinance sets out a number of duties and obligations that trustees must comply with. For example, trustees must act in the best interests of the beneficiaries of the trust and must avoid conflicts of interest.
Here are some additional things to keep in mind when setting up a RRPT in Hong Kong:
Choose a reputable trustee company. The trustee will be responsible for managing your trust assets and carrying out your instructions, so it is important to choose a company that is experienced and trustworthy.
Make sure the trust deed is drafted carefully. The trust deed is the legal document that sets up the trust and defines the terms and conditions, so it is important to have it drafted by an experienced trust professional.
Consider your tax situation. RRPTs in Hong Kong can have tax implications, so it is important to consult with a tax advisor before setting one up.
Review the trust deed regularly. As your circumstances change, you may need to amend the trust deed. It is important to review the trust deed regularly to make sure that it still meets your needs.
Overall, setting up a RRPT in Hong Kong can be a complex process, but it can be a valuable tool for asset protection and estate planning. By seeking professional advice and carefully drafting the trust deed, you can create a trust that will meet your needs and protect your assets.
Reputable Trustee Company in Hong Kong
Bestar Trusty is a reputable trustee company in Hong Kong that specializes in RRPTs. We have a team of experienced trust professionals who can help you draft a trust deed that meets your specific needs.
When choosing a trustee company, it is important to consider the following factors:
Experience: The trustee company should have experience in setting up and managing RRPTs.
Reputation: The trustee company should have a good reputation in the industry.
Fees: The trustee company should charge reasonable fees for its services.
Location: The trustee company should be located in a jurisdiction that is convenient for you and your beneficiaries.
It is also important to have a trust deed drafted by an experienced trust professional. The trust deed is a complex legal document that will set out the terms and conditions of the trust, including the assets that are being transferred to the trust, the beneficiaries of the trust, and the powers that you are reserving to yourself. An experienced trust professional can help you draft a trust deed that meets your specific needs and complies with all applicable laws and regulations.
Please contact us if you have any other questions.
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