The debt crisis surrounding China Evergrande Group (3333) further deepens with no sign of stopping. As of June this year, Evergrande’s debt has swelled to more than 300 billion US dollars, while the interest payable on overseas US dollar debts by the end of this year alone has reached 616 million US dollars. Furthermore, Evergrand would need to repay a U.S. dollar bond payment due on October 29, as well as another $7.4 billion in onshore and offshore bonds maturing in 2022.

Handling corporate debts with personal wealth

Evergrande’s Founder, Hui Ka Yan, dedicated his life to building the company he founded into a real estate powerhouse. However, the immense wealth that he amassed throughout the years is now becoming increasingly fragile, as the Chinese authorities now urge him to repay Evergrande’s mounting debt with his personal assets.

Personal wealth lacking trust protection is vulnerable to exposure

In principle, all properties purchased in the name of an individual are defined as personal assets. If you purchase real estate in your name, your identity would expose to the public as record can be searched at the Land Registry. Consequently, your property might possibly be susceptible to enormous threats when facing creditors. Likewise, any purchases of vehicles under your name or any jewelry, paintings, or valuable items paid with your bank-issued credit card could be traced by a third party at the Vehicle Registry or in a bank transaction system without much effort.

Set up a trust to protect your personal assets

An entrepreneur can protect his personal assets from business risks by setting up a trust. By injecting personal assets in a trust structure, the legal title of his personal assets will then be held by the trust company (trustee). In addition, all trust assets are protected by laws, namely, the International Hague Convention, Hong Kong Trustee Ordinance and Recognition of Trusts Ordinance. In short, your personal assets in the trust will not be affected when the business is under financial pressure or bankruptcy risk, thereby ensuring your children’s growth and your family‘s needs.

No one can anticipate future risks, but you can foresee what kinds of personal or family assets need to be protected. Trust is by no means the exclusive right of wealthy people. With a minimum injection of 10,000 USD in assets, we provide you and your family with a legally protected trust structure for asset preservation and succession planning.

A credit card with high level of privacy (coming soon), living with your trust

While we are safekeeping your assets, you can apply for a high-privacy credit card (UTGL Asset Link Credit Card) issued by our affiliate company which is a non-bank financial institution. It enables you and your family to spend globally as a monthly distribution by your trustee. Combined with our FinTech blockchain trust platform, you can easily manage all cards in the main account. Your spending records are absolutely protected with high privacy. You deserve to enjoy a high level of financial privacy while your assets are protected!

Disclaimer: The content of this article is not investment advice, nor does it constitute any offer, solicitation, or suggestion for investment products. This information is for general purposes only.

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