Trust Referral Case

Client Background – Mr. Suen & Mrs. Suen

    • Family Profile:
        • Mr. Sun, 43 (cross-industry entrepreneur), Mrs. Sun, 41 (homemaker)
        • 2 minor children
    • Asset structure:
        • Liquid assets: Cash, stocks, fund portfolio
        • Fixed assets: Diversified insurance coverage
    • Special circumstances:
        • Mr. Sun has achieved remote business management
        • Mrs. Sun lacks financial management experience

Pain Points in Immigration Planning

The Sun family plans to immigrate within two years for children’s education but faces:

1. Tax Barriers

  • 40 or above inheritance tax rates in US/UK/Australia etc
  • Canada exempts inheritance tax but levies capital gains tax

2. Asset Risks

  • Potential significant asset depreciation during immigration transition
  • Spouse’s limited financial capability to manage complex assets

Professional Trust Solution

An “Offshore Discretionary Trust” structure addressing three core functions:

1. Tax Optimization System

  • Registered in offshore jurisdictions (Cayman/Bermuda)
  • Legal ownership transferred to trustee
  • Complete avoidance of inheritance tax scope
  • Cross-border tax efficiency arrangement

2. Smart Distribution Mechanism

Trigger Condition Distribution Plan Protection Purpose
Age 18 Full 4-year university tuition Ensure premium education
Age 25 30% local property down payment Establish asset foundation
Age 30 Marriage/entrepreneurship fund Maintain social status

3. Asset Protection Design

  • “Asset Firewall” clause
  • Complete isolation of business risks
  • Creditor protection for trust assets
  • Dedicated account for Mrs. Sun

Implementation Strategy

Phased Execution Plan:

1. Preparation Phase (12 months pre-immigration)

  • Trust structure establishment
  • Transfer 80% liquid assets into trust

2. Management Framework

  • Appointment of professional trust company
  • Establishment of “Protector” role (family lawyer)

3. Contingency Plan

  • Retain 20% liquid assets as transition fund
  • Create dedicated withdrawal account for Mrs. Sun

Expected Benefits

Tax Avoidance: Mitigate inheritance tax risk

Precise Succession: Trigger-based distribution for optimal wealth utility

Risk Isolation: Complete separation of business and family assets

Continuous Management: Professional trusteeship addressing spouse’s management limitations

(Note: Specific structure requires adjustment based on final destination, recommended to conduct cross-border compliance review with tax lawyers.)

Other Case Study

Insurance Case Study

Insurance Case Study

Client Background - Mr. Chan & Mrs. Chan Ages: 40 (Engineer) & 35 (Teacher) Family: 2 children Income & Expenses: Monthly household income: HK$140,000 Monthly net savings: ~HK$50,000 (after living expenses & mortgage) Property: Primary residence value:...

Tax Planning Case Study

Tax Planning Case Study

Client Background - Mr. Ho Age: 46 Occupation: Doctor Family Status: Married with 3 children Property Holdings: Currently owns a Hong Kong residential property (current market value: HKD 12 million; purchase price: HKD 6 million) Assets Composition: Cash, fixed...

Overseas Property Case Study

Overseas Property Case Study

Client Background - Mr. Chan & Ms. Chan Age: 40 (Engineer) Marital Status: Married with 2 children Income: ~HK$40,000/month Current Property: New Territories 2-bedroom apartment Purchase price (2005): HK4M∣Currentvalue: HK7.5M Investment Motivation &...

Family Office Case Study

Family Office Case Study

Client Background - Mr. Chung Age: 64 Occupation: Second-generation leader of a family-owned manufacturing business Family Status: Married with 3 adult children (all married); youngest daughter (35) recently welcomed her third child Succession Challenges &...