A trust is a legal arrangement used to hold underlying financial assets. It is not a legal entity and cannot directly hold non-financial assets, therefore the trustee will typically set up a SPV (Special Purpose Vehicle), a limited company, to manage the diverse assets on behalf of the trust. The SPV is tailored for distinct financial endeavors or projects, encompassing a diverse array ranging from real estate, corporate shares, vehicles, high-end possessions, valuable artworks, intellectual property, and beyond. The SPV's governing jurisdiction is intricately linked to the nature of the asset and its geographical whereabouts.

Examples of non-financial assets:

• Properties

• Company Shares

• Vehicles

• Precious metals

• Arts and Antique

• Luxuries

• Insurance Policies

• Endowments

• Intellectual Property and its royalties

• Patents and Copyrights

Unlock the Full Potential of Your Trust Assets Through SPV

Risk Segregation

Diversifying investments among various SPVs is a robust risk management strategy, especially when a single project failure could result in significant liabilities. By allocating projects across different SPVs, the impact of one failure is isolated, safeguarding your portfolio and enhancing financial stability in the long run. SPV acts as an additional legal layer of separation between non-financial assets in trusts and personal assets of the settlor, mitigating all potential risks of holding those assets and preserving the long-term viability of the overall portfolio.

Consolidation of assets

Methodically arranging your assets spread across different SPVs into a trust can help centralize and unite your corporate or family wealth, making it easier to oversee and manage. The trust can act as a central hub to provide a detailed blueprint of your complete wealth portfolio, including the assets held in the various SPVs. This allows you to overview the size, composition, and interconnections among your assets. By consolidating your assets in a trust structure that incorporates the SPVs, it provides you with a much better understanding of your overall assets, making it easier to make smart decisions and protect your wealth effectively.

Separation of Operations

Business arrangements can use trusts to hold other entities or structures with the combination of SPVs. Each SPV tailors with its own directors, shareholders, and set up its independent bank accounts. This enhances the oversight and decision-making capabilities for that particular project or investment, aligning it more closely with the financial requirements.

SPV improves the planning and control of related entities, while also ensuring a greater degree of confidentiality and safeguarding for the beneficial owners. As the income and expenses of the SPVs are often treated separately, this allows for optimized tax planning and reporting by complying with the relevant laws and regulations according to the jurisdiction of each SPV.

A Case Study in Global Dominance - Alibaba

Many major corporations and businesses across diverse industries implement special purpose vehicles (SPVs) within a trust structure. Alibaba Group Holding Limited illustrates how such an arrangement can be particularly beneficial.

Jack Ma, the founder of Alibaba, has set up a trust that holds two companies incorporated in the BVI. All BVI companies are considered to be BVI residents. Although as BVI residents they should pay income tax, there is an exemption for all BVI business companies on, for example, interest or any capital gains related to any shares and debts. By utilizing these BVI companies held within the trust to possess Alibaba shares, Jack Ma strategically leverages significant tax benefits while effectively partitioning his assets through the trust structure. Noteworthy is the fact that the dividends derived from the Alibaba shares held within these BVI entities are shielded from the heightened personal income tax implications that would apply if the shares were held directly under his name.

Apart from optimizing his tax liability, Jack Ma maintains controlling and decision-making rights over the Alibaba group. The trust structure separates the ownership of the shares, so it ensures that there will be reduced conflicts among Jack Ma over the equity or stock rights in Alibaba Group Holding Limited.

This arrangement truly gives Jack Ma the best of both worlds. This example demonstrates the powerful combination of using a trust to hold a Special Purpose Vehicle, in this case the BVI companies. Not only does it provide tax optimization benefits, but it also serves to protect the personal assets and isolate any legal or financial risks associated with the business.

Take Your Trust to the Next Level:
UTGL's Supreme Plan

UTGL offers diverse trust plan to fulfill the varying needs of personal and corporate users. For our most advanced Supreme Plan, you can select the jurisdiction of the SPV (usually BVI or Hong Kong) to cater to your specific investment or project requirements. Unlike most companies in the market, you can enjoy our comprehensive, all-in-one trust plan with a complementary SPV for only single setup fee, without any hidden fees. UTGL provides ongoing monitoring and support for the trust with SPV, including respective legal, admin, compliance as well as tax advisory support. This streamlined approach eliminates the need for you to navigate multiple service providers, saving you valuable time and resources.

In addition to our trust services in nature, UTGL's Supreme Plan has been upgraded in various ways. For example, we offer more cross-border cashback and additional cards in our Asia's first Asset Link credit card. We also provide 1-on-1 Telegram Group Support for instant follow-up and inquiries, as well as global bill payments through the UTGL portal.

UTGL services are designed to provide clients with a secure and reliable solution. Overseen by a dedicated team of seasoned professionals, our offerings prioritize the safeguarding of your assets, ensuring the highest levels of privacy protection.

If you would like to explore the details of our plans in the context of your distinct financial goals and objectives, we welcome you to schedule a complimentary consultation with our skilled team. During this session, we will thoroughly assess your specific needs and provide a detailed evaluation of whether our Supreme Plan could be a suitable option for you.