Don’t Lose Trust in Trusts

When it comes to setting up a trust, it’s very easy for people to get confused, frustrated and lost. Indeed, trusts can be a very complicated topic because they have to simultaneously deal with so many complicated issues such as tax, jurisdictions, estate planning, asset managements and family citizenship. There is no one-size-fits allsolution. But if you area Chinesepassport-holding parents who are thinking of setting up a trust for the benefits of your US-citizen children (or children who will potentially become US citizens), this article is right for you. If not, please consult with a legal expert or professional in the trust industry.


2015: The Tortuous Development of Offshore Trusts in China

So far, most international trustees have to admit that the promotion of offshore trusts in the Chinese market is far from the optimistic expectations they held five years ago, but it is also not as pessimistic as what those who have retreated describe. Like other businesses which entered China for a share of the local market, a very high threshold stands in the way of such a large market, especially for offshore trusts. Due to the significant gap between local trusts and offshore trusts, promoting offshore trusts in China is like selling shoes in a country where people don't wear shoes. It is exciting but desperate, but when you feel hopeless, a sparkle makes you fall into reverie. 


On the Development of Family Trusts from the Perspective of the Trustee

In recent years, the wealth management issue that has received the closest attention in China is no doubt the reform of the trust system. As trusts are no longer a purely financial product or instrument, they have also become a mechanism for truly assisting people in managing and passing on their wealth. However, taking a broad view of the international community, every country that has successfully implemented the trust system has without exception steered a cautious course in designing the relationships between the Trustor (or Grantor), the Trustee, and the Beneficiary.


Definition and Designated Use of Offshore Companies

In the coastal cities of China, enterprises have been gaining an increasingly deep understanding of offshore companies. Meanwhile, in recent years, more and more offshore institutions have been established and registered. An offshore company refers to a limited liability company established in an offshore jurisdiction according to its laws and regulations on offshore companies. Local government collects no tax but only a small amount of corporation administration charges from offshore companies.


Trusts Versus Foundations, What Should You Choose?

It is well known that offshore companies are widely used in China with Hong Kong, BVI and Cayman companies being the most common. Such structuring is of great benefit particularly in relation to outbound investment. As time moves on, entrepreneurs and investors are giving increasing attention to matters of estate planning to ensure that the fruit of their labours can be passed to the next generation as efficiently as possible, and ideally in such a way that assets do not need to be broken up or sold in order to settle inheritance tax bills.

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