In recent years, Hong Kong has been keen on attracting global family offices to establish a presence in the city, promoting Hong Kong as a family office hub. Victor Li, Chairman and Managing Director of CK Asset Holdings (1113) and member of the Li Ka-shing family, responded by saying, "The Li family has always made various investments in Hong Kong and will institutionalize the establishment of a family office in Hong Kong, managed by long-time trusted colleagues and family members."

Li Ka-shing established several family trusts, including Li Ka-Shing Unity Holdings Limited, in the 1980s to hold shares of his various enterprises. These trusts are among the most well-known family trust funds in Hong Kong. With accumulated wealth, the Li family expanded investments to countries such as Canada and Singapore in the 1980s. Subsequently, Li Ka-shing involved his two sons in managing the family's listed companies and established multiple trusts to manage the listed companies and foreign investments.

Over the years, many wealthy individuals in Hong Kong have set up similar family office investment institutions. Among Hong Kong's Chinese families, such as Lui Che Woo, Chairman of K. Wah International (0173) and Galaxy Entertainment Group (0027), and the Lee Kum Kee Group, have long established family trusts. As for other Chinese families, Lee Shau Kee, founder of Henderson Land Development (0012), has also set up trusts to manage listed companies.

What is a family office? What is family trust?

A Family Office is a private organization that manages the investments, estate planning, and personal affairs of a wealthy family. It centralizes wealth management, offering services like investment management, estate planning, philanthropy, tax and legal services, and personal administrative tasks. Family offices can serve a single family (single-family office) or multiple families (multi-family office).

A Family Trust is a legal arrangement where a trustee holds and manages assets for the benefit of family members or other beneficiaries. Governed by a trust deed, the trustee ensures the assets are managed and distributed according to the specified terms. Family trusts are used for asset protection, estate planning, and tax planning, helping to transfer wealth to future generations efficiently.

Learn More About What is Trust

Why the wealthy families set up trusts to manage their businesses?

Wealthy families often set up trusts to manage their businesses for several key reasons:

1. Asset Protection: Trusts can shield business assets from creditors, lawsuits, and other claims, ensuring the family's wealth is preserved.

2. Estate Planning: Trusts facilitate the smooth transfer of business ownership and control to future generations, minimizing disputes and ensuring continuity.

3. Tax Efficiency: Properly structured trusts can reduce estate and inheritance taxes, optimizing the family's overall tax situation.

4. Control and Flexibility: Trusts allow families to set specific terms for how business assets are managed and distributed, providing control over their legacy.

5. Privacy: Trusts offer a level of confidentiality that can protect the family’s financial information from public scrutiny.

By setting up trusts, wealthy families can ensure their businesses are managed effectively, preserved for future generations, and protected from various risks.

Is trust only for the wealthy?

Typically, trust services are offered primarily by private banks with high minimum requirements, making them inaccessible to non-high-net-worth individuals. This has led to one of the most pervasive myths about trusts: that they are only accessible to the ultra-wealthy. However, trusts can be an invaluable tool for families across all income levels, providing a range of benefits that can make a significant difference in securing their financial future.

Even individuals with modest assets can leverage the power of a trust to protect their wealth, ensure a smooth transfer of assets to their beneficiaries, and provide for their loved ones' well-being. Moreover, the flexibility of trust structures means that they can be tailored to meet the specific needs and financial circumstances of each family. Whether you're looking to provide for your children's education, protect a family business, or ensure the care of a loved one with special needs, a trust can be designed to address your unique concerns and goals.

Set up your trust today with UTGL

UTGL has redefined the trust industry, transforming the old notion that 'Trust is a traditional wealth management tool for the wealthy' into 'Trust is a popular wealth preservation and inheritance tool for everyone'. We firmly believe that everyone can benefit from this highly private, flexible, and protective tool for wealth planning.

Many people mistakenly think that setting up a trust requires millions in assets. In fact, if you are a visionary person with future plans, we can guide you through your life, providing a trust account that you can upgrade incrementally as your trust fund grows.

A well-planned trust arrangement can ensure your family's financial future is protected, regardless of unforeseen circumstances. Additionally, a trust can potentially safeguard your assets from the financial risks associated with divorce, economic uncertainties, and even death.

Choose your plan

We invite you to schedule a complimentary consultation with UTGL's skilled team, where we will thoroughly assess your specific needs and provide a detailed evaluation of trust plans that can be customized to maximize your control and influence. This collaborative process will ensure we develop a tailor-made solution that aligns perfectly with your distinct financial goals and concerns.