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

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.)