General FAQ

Control and Flexible use of Trust

UniTrust Global, as the trustee, will allocate trust assets to beneficiaries in accordance with the wishes of the settlor, including any time and conditions imposed. The trust can be used for payment of daily living expenses such as bill payment, property rental, car repayment and credit card repayment. The trustee can withdraw funds from the trust account as instructed by the settlor to support families in need or to meet medical and other emergency expenses.

A UniTrust Global trust account can centralize all your assets and provide full function services, which even banks may not be able to offer. Most banking institutions do not support transactions with/on or accept custody of precious metal, large cash amounts or overseas assets. We have a dedicated team of relationship managers with professional qualifications, solid investment and financial knowledge to provide wealth management solutions tailored to your personal needs. With a global team of experts, we can provide a comprehensive solution to support your daily financial needs and cross-border financial requirements.

The trust account can safekeep different assets including cash, stocks, private company shares, insurance policies, precious metals, property and vehicles. Customers will also obtain a personal Asset Link Mastercard credit card. The credit card limit is based on the market value of the assets under the trust account and there is no limit to the amount of credit.

Simply using a single login to our trust platform, you can enjoy cross-regional cross-banking services and a world of investment opportunities.

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Asset Protection

A well-established trust protects your wealth and holds your assets through the trust to effectively avoid future claims by creditors. Trust also allows you to protect inherited assets from being squandered by family members, provide life protection for current or future generations of minor or disabled members. By leveraging our network of multijurisdictional banking class partners, a trust can also protect your assets in times of political instability. We can also assist you on business inheritance arrangements.

Most advanced jurisdictions have banking deposit protection program in place, adding in an extra level of security for our customers.

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Protection of privacy

The identity of you and the ultimate beneficiary of the trust is highly confidential, keeping the potential of any assets being frozen to a minimum. It can protect the family assets from creditors or other claimants.

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Tax planning

Trusts are internationally recognized tax planning tools. Under a robust legal framework and the protection of the laws of Hong Kong, the trust can minimize the tax burden of heirs.

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Protect young beneficiaries

If your loved ones are young or do not have the ability to manage their wealth, the trust can properly manage the trust assets for them and use them to cover the living expenses of the beneficiaries.

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Exemption from probate requirements

Assets under the name of the trust are managed by the trustee and therefore not part of the settlor estate. Setting up a trust ensures that assets can be distributed quickly and efficiently to your designated beneficiaries without having to go through lengthy and expensive probate court proceedings. In other words, you give legal ownership of the assets to the trustee, and the beneficiary has beneficial ownership.

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Succession Planning

By setting up a trust, you can help your family assets pass on from generation to generation or ensure your family business is sustainable.

Trust legislation follows the common law of the United Kingdom and has a history of more than 100 years. Private trust account combined with the traditional banking and the emerging financial services concepts, has become the hottest choice of asset management today. Trust accounts can provide a high degree of privacy and asset appreciation, assets are absolutely protected. Hong Kong has many advantages so that the trust account plays its unique functions including low tax system, US dollar linked exchange rate, high regulatory environment, free access to funds in and out of Hong Kong and a variety of favourable factors have accelerated the rapid growth of the trust account. The trust account is clearly a time-bound financial choice.

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A wide range of assets can be held by trust, including but not limited to those listed below:

• House and other real estate
• Stocks, bonds, and other investment
• Cash in multiple currencies (we also offer offshore bank accounts)
• Large life insurance policies (if the beneficiary is a child, the insurance trust can store the policy compensation in the trust, managed by the Trust Company for the child, until the child reaches adulthood before allocating assets, avoiding possible family disputes)
• SME ownership and income (small business shares, partnership income, or limited liability company ownership)
• Precious metals
• Automobile
• Works of art, aircraft, yachts
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According to s81(f) Trustee Ordinance (Cap. 29) a trustee can hold currencies, securities, jewellery, automobile license plate or other valuable property and of papers, documents, deeds, wills, debentures and other evidence of title or indebtedness on trust for and on behalf of you. By putting your assets into your trust account, you can invest and manage them with the greatest degree of flexibility. UniTrust Global Limited would manage your assets strictly in accordance with your instructions. UniTrust Global Limited has set up an offshore trust account which is recognised by different jurisdictions. We welcome our clients to transfer their capital to our offshore trust account.

We would recommend to those who:

• Want to access diversified investment opportunities to increase their asset value
• Are living in countries that may have high tax regime or other financial controls
• Company which is ready to go public
• Are living in countries with high financial instability and political risk
• Are concerned with personal assets being frozen
• Immigrate or intend to immigrate
• Need offshore account-based operations

Yes, UniTrust Global provides the basic benefits of the general trust such as asset isolation, confidentiality, and asset protection, we also offer services which can help you take care of payments of living expenses such as bill payment, bank transfer, opening securities accounts, but also the global allocation of assets. Trustee’s role is to act on behalf of our customers in the interest of the beneficiaries.

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Over and above, we provide every client a secured Mastercard credit card. You can spend as much as the permitted card credit limit, based on a percentage of the market value of your assets. UniTrust maximizes the liquidity of your assets. Regardless of the client’s credit rating (TU), the credit limit will not affect account operations and credit card applications.

You can apply online on our licensed digital trust platform at www.utgl.io or make an appointment with our Relationship Manager for account opening. Your application will be processed within 2-3 working days, which is much faster than any other traditional trust application.

The simple process of setting up a private trust includes:

1) Client provides his/her identity document and the latest address proof

2) Relationship Manager of UniTrust Global will set up a meeting with client to understand his/her needs

3) Client signs the trust documents (e.g. trust deed, letter of wishes)

4) Client can inject assets afterwards

Private Trust setup is flexible. It is true that a Trust structure can be very simple and standard or can be very complex, depending on the purpose and need that the customer requires. You can set up a simple standard private Trust to meet basic needs or customize the details to meet complex needs.

At UniTrust Global Limited, earning your trust and serving our clients are our utmost priorities. We are trustees and custodians in legal title. Yet all assets are held by licensed financial institutions or best in class custodians.

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We also pride ourselves on our high legal compliance. All our most important legal documents, from account opening forms to trust deeds are supported by our external Barrister’s legal opinion. This top-notch standard we hold ourselves to will result in better servicing and trust arrangements such that we are confident it provides quality protection to our customers from potential regulatory and litigation risks.

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Part (iii) Section 77(2) of the Trustee Ordinance requires all public company Trustee licensees to place a substantial deposit with the Government’s Department of Accounting Services. In addition to compliance with this statutory requirement, we also have voluntarily taken out professional indemnity insurance and full third-party liability insurance for your added peace of mind.

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UniTrust Global Limited is a licensed Trust Corporation in Hong Kong and it is also a member of the Hong Kong Trustees’ Association. Some other relevant legal obligations are below for our customer’s understanding.

• s2 Recognition of Trusts Ordinance (Cap. 76) states that our clients’ and our trust accounts are governed by the law.
• s3A Trustee Ordinance (Cap.29) states that the trustee must exercise the care and skill that is reasonable in the circumstances, having regard to any special knowledge or experience that the trustee has or holds out as having and if the trustee is acting in that capacity in the course of business or profession, any special knowledge or experience that is reasonably expected of a person acting in the course of that kind of business or profession.
• s97 Trustee Ordinance (Cap.29) further provides that employees of a trust corporation shall be personally responsible to the court and subject to the process of the court as if he is appointed as a Trustee personally.
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The structure of trust provides a greater scope of protection to clients’ assets than the Banking Ordinance offered to the banking account customers. We, UniTrust Global Limited, comprises experts from different fields. Together, we form a well experienced team to manage your account and assets.

Settlor has absolute discretion to hire experts like lawyer and accountant when professional and investment advice are required. Our relationship manager will always take your instructions promptly.

s33 Trustee Ordinance (Cap.29) provides that trustee has the power to pay income of the assets to the parent(s) or guardian of the minor beneficiaries or otherwise apply for or towards his maintenance, education or benefit.

Yes. It can be done by having your trustee as policy holder or policy beneficiary. Insurance trust is always used to hold life insurance with great cash value. After the death of the settlor, the life insurance proceeds will be distributed smoothly to your designated beneficiaries in accordance with your wishes.

UniTrust Global Limited does not provide investment advice but will invest in different products in accordance with your or your investment manager’s instructions. Our services include but not limited to IPO subscription, purchasing shares or fund units, precious metal trading and purchasing insurance policies. s2 Article 2(c) Recognition of Trusts Ordinance (Cap.76) provides that the trustee has the power and the duty, in respect of which he is accountable, to manage, employ or dispose of the assets in accordance with the terms of the trust and the special duties imposed upon him by law. Our one-stop service not only provides a greater level of confidentiality but also allows our clients to enjoy a more convenient lifestyle.

There are no special requirements. We accept various kinds of assets and set no standard to our clients, other than as required by AML regulations. (s81(f) Trustee Ordinance (Cap. 29))

UniTrust Global Limited, as a Trust Company is regulated separately from the banks' regulators.

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Trust structure and Trust operations are highly secure and private in law. Under the Recognition of Trusts Ordinance (Chapter 76), Schedule 2 (1), Chapter 1, 2 (a), trust assets are a separate fund held in the name of the trustee and customer and asset information is kept confidential. All property is managed and operated on behalf of the trustee (UniTrust Global Limited) and the trust assets are confidential.

By subscribing to our services, our professional team can provide different alternatives to alleviate the tax burden of the settlor. We also provide special proposals to clients when they file the CRS form. A trust structure is not a tax evasion tool, but a professional trust corporation can advise clients on ways to make their tax exposure more efficiently planned.

The Common Reporting Standard (CRS) is a standard to help fight against tax evasion and protect the integrity of tax systems, endorsed by the Organisation for Economic Cooperation and Development (OECD) in 2014 for implementing the Automatic Exchange of Financial Account Information (AEOI).AEOI is a system where financial institutions (FIs) transmit financial account information among those countries that have signed the AEOI agreements ("AEOI partners"). There are over 100 AEOI partners currently.

Generally, only information related to financial assets is subject to reporting under CRS.

Any foreign individuals or entities tax residents of AEOI partner jurisdictions or countries with financial accounts with financial institutions in Hong Kong will be reported.  

UniTrust Global Limited, a licensed trust company in Hong Kong, is considered an investment entity under the Guidance for Financial Institutions of the IRO.  As an investment entity, the trustee is required to identify and report on the financial accounts it manages or administers, comply with CRS due diligence procedures to determine the account holders and controlling persons, and report the requisite information about these reportable accounts and account holders to the IRD.

The financial institution must report the trust beneficiary, including discretionary beneficiaries when they have received distributions from the trust.

You will need to notify us for an update if you change your account information or if there is a change in your reportable status. Any changes to your reportable accounts must be reported within 30 days.

While cryptocurrencies are not classified as reportable assets in Hong Kong, they are subject to various regulations. We follow the rules and will adhere to any recent changes in developing CRS reporting requirements.

The AEOI regime allows different categories of accounts to be excluded from reportable financial accounts.

Some strategies to help further protect your privacy include:

(1) Taking advantage of CRS exemptions and exclusions that may apply to your situation.

(2) Consulting our qualified tax and legal advisors can help identify potential CRS exemptions and optimal privacy protection strategies.

A taxpayer identification number (sometimes called a TIN) is a unique number issued by the government to an individual or entity. For example, Hong Kong will use Hong Kong Identity (HKID) numbers (for individuals)and business registration numbers (for companies) for CRS purposes.

Background

Walter Kwok was a Hong Kong real estate developer. He was the eldest son of Kwok Tak-seng, founder of Sun Hung Kai Properties, and his wife Kwong Siu-hing. Following their father's death in 1990, he and his brothers Thomas and Raymond inherited Sun Hung Kai Properties. To protect HK$246.6 billion Sun Hung Kai Properties empire, Kwok Tak-seng set up a family trust before his death. The beneficiaries are his sons and his wife who is also the protector of the family trust.

Until Walter Kwok’s mother figured out the relationship between and Kwok and Kwok’s mistress, Ida Tong Kam-hing, she decided to remove Kwok as a beneficiary out of the family trust in order to protect the family asset.

Benefit of Trust

Integrate assets into a robust legal framework helps to separate trust assets from personal assets. The legal ownership of trust assets does not belong to the settlor or beneficiary. Under a specific trust structure, if the settlor encounters a debt crisis or divorce, etc., it will not affect the ownership of the trust property.

There is no public disclosure requirement for family trusts and the actual beneficiaries will not be threatened by security.

Law Reference

1) Section 2(1) of the Trust Recognition Ordinance

2) Note that section 43(1a) of Chapter 6 of the Bankruptcy Ordinance, Chapter 32 of the Companies (Winding Up and Miscellaneous Provisions) Ordinance and Chapter 219 of the Conveyancing and Property Ordinance, stating that the liquidator has the right to recover Certain situations of unfair transactions, for example, if the deployment takes place within a certain period of time before the bankruptcy or liquidation process begins.

News Reference

Walter Kwok puts faith in original family trust deal

Background

Jolin Tsai is a Taiwanese Mandopop star and a well-known billionaire. She has been in a steady relationship with New Zealand-born model beau Vivian Dawson for the past four years and wedding rumour have been rife. However, the singer’s father is reportedly worried about incompatibility in status between the pair and that they could end up in a divorce if they decide to get married. As a result, Tsai has trusted Jolin’s NT$2 billion (approximately S$84.4million) assets to the bank as a precaution.

Benefit of Trust

Trust protects assets from divorce proceedings, and restricts the beneficiary of the trust through “conditional distribution” to avoid disputes arising from the division of property.

Note: The establishment of a trust does not completely avoid assets disputes. If the settlor has thought of divorcing a few years after establishing the trust, the trust scheme or arrangement which is, or is likely to be treated by the court to be, a fraudulent attempt by one spouse to defeat the other spouse’s ancillary relief or financial remedy claims.

Law Reference

Section 11c of Chapter 76 of the Trust Recognition Ordinance

News Reference

Jolin Tsai’s assets reportedly trusted to bank

Background

Mr Vadim Schmidt sought disclosure of accounts and information in relation to two trusts set up by his father, who had died intestate. Rosewood Trustee Ltd was the trustee of the two relevant trusts. The defendant trustee argued that Schmidt was not entitled to the disclosure of the trust documents because he did not have a proprietary interest under the trust. Nor had his father been the settlor under the trust, which had been executed by Pacquerette Ltd as settlor (the nominee of Mr Schmidt).

Benefit of Trust

Trust is a high-standard legal arrangement, inheritance information does not become public records like a will, and the wealth will be kept in a legal, safe and private structure. After the establishment of a family trust, the management and use of the trust property are carried out in the name of the trustee. Except for special circumstances, the trustee has no right to disclose the operation of the family trust property any extreme party.

Note: The beneficiary has the right to request the disclosure of the trust file, but it is best to treat this right as an exchange of the court's inherent jurisdiction. , the court supervises and intervenes in trust management as appropriate.

Law Reference

Section 11c of Chapter 76 of the Trust Recognition Ordinance

Court Case Reference

Beneficiaries' rights to trust information in the light of Schmidt v Rosewood Trust Limited

Background

If there is a Will, the Registry would validate the Will and issue a legal document called the 'Grant of Probate'. One of the reasons is to prevent someone from forging the will. Usually it takes a long time to receive it before having access to the assets. Hence, the family may not be able to meet the immediate financial needs, such as mortgage payment, children's living expenses and school tuition fees, family living expenses, etc.

Benefit of Trust

Clients can consider a testamentary trust to arrange Hong Kong properties to be transferred to the trust after the client passes away without paying stamp duty. Trustee can also facilitate the family’s (if beneficiary to trust) immediate needs.

Law Reference

Section 2a of Chapter 76 of the Trust Recognition Ordinance

Court Case Reference

Late tycoon Nina Wang’s charitable foundation files bankruptcy petition against former ‘lover’ Peter Chan, jailed for forging her will

Background

Anita Mui was a popular Hong Kong singer and actress making major contributions to the Cantopop music scene. She had set up a trust fund that had prevented her mother and elder brother from misusing her inhe­ritance by providing them monthly allowance.

Benefit of Trust

Beneficiaries are chosen by the settlor and the list of beneficiaries can always be amended. Distribution of assets can be done in different ways. For instance, one-off distribution and regular distribution can be selected. Settlor may even set conditions in the distribution of assets over time.

News Reference

Pop diva Anita Mui's mother to get allowance from trust
Anita Mui’s mum gets RM130,000 for party

Background

Emily, 45 years old, runs an online cosmetic shop for many years. She has 3 offices in Hong Kong, Zhuhai and Shenzhen with staff of around 20. She was divorced two years ago. She is now living with her son of 5 years old and her mother. She gained reputation by word of mouth, now her shop has over 50,000 members. The business brings her monthly revenue of about HK$200,000, and can be up to HK$400,000 during peak season. She accumulates her wealth to HK$5,000,000 which includes stocks and cash. She recently is in love with a gentleman while concerning the consequences of her wealth and child if someday she gets married and the marriage ends up unwell.

Solution from UniTrust:

• Set up a private trust for Emily for asset protection and estate planning.
• Manage her assets with our platform, allowing her to trade and transfer freely
• Manage her securities account, assist for to trade stock without any delay
• UniTrust’s solution solves all problems for Emily and are able to meet her needs

Background

Mr Xu is 40 years old, holding a HKID card and PRC passport. He has lived in Hong Kong with his wife for over 10 years. He is an IT expert working in a multinational company. His work hour is long, sometimes he works until mid-night. They are financially independent. He has a high interest in trading of stock. His accumulated wealth is around HK$12M. He seeks for asset privacy and a platform allowing him to have fund flow flexibility.

Solution from UniTrust:

• Set up a custodian trust for Mr Xu
• Trustee acts according to his instruction to transact crypto or stock trading
• Monthly statement is available for Mr Xu to view his assets and trade history via our online platform
• The Trust structure provides a certain level of asset protection to benefit his wife as beneficiary of the trust
• Mr Xu can freely enjoy one platform to fit his investment goal

Background

Mr Yeung is a business owner. He is 55 years old, while his wife is a housewife, 40 years old. They both are Hong Kong tax residents. They have two daughters at the age of 10 and 12 living in Hong Kong as well. He owns a factory in Guangzhou and a trading company in Hong Kong. His wealth is around HK$40M consisting of properties, stock and cash. He is a frequent traveler but due to Covid-19, he is compelled to stay in Hong Kong. Last year, he was diagnosed with stroke. He is worried that his wife has no experience to manage the wealth if he has any accident one day. Therefore, Mr Yeung seeks for UniTrust service to provide wealth planning solution to solve his concern.

Solution from UniTrust:

• Set up a private trust for Mr Yeung for succession planning. Mr Yeung is the Settlor, his wife is the Protector and the Beneficiaries are his wife and two daughters
• Work with a lawyer to prepare a Will for Mr Yeung. The properties will transfer into the trust once Mr Yeung demises. This avoids the payment of stamp duty on transfer of ownership in the current stage
• Arrange bill payment for his company so as to ease his administration burden
• Maintain his securities account to let Mr Yeung focus on his business
• Arrange for remittance to assist the salary payment to his employees in China
• UniTrust provides one-stop solution to fix Mr Yeung’s various concerns