A trust is a highly esteemed and robust legal arrangement, originating during the Crusades in the 12th century.

A Trust rooted in English Common Law and Equity principles. Established through a Trust Deed, it carries substantially stronger legal enforceability compared to ordinary contracts, including remedies such as Specific Performance for Trust Deeds.

A trust is not a corporate entity (Non-Corporate Entity). Upon the establishment of a trust, the Settlor transfers the legal title of the assets to the Trustee, who is typically a professional licensed trust institution. The Trustee is legally bound to act in accordance with the Trust Deed and the provisions of Hong Kong’s Trustee Ordinance (Cap. 29). Guided by the principles of Fiduciary Duty and Duty of Prudence, the Trustee must manage and dispose of the trust assets independently, always prioritizing the best interests of the Beneficiaries.

In addition, as a critical component of the trustee’s legal responsibilities, the trustee must strictly comply with the regulatory requirements set out under the Anti-Money Laundering and Counter-Terrorist Financing Ordinance (AMLO), Cap. 615. This includes conducting Know Your Customer (KYC) and Customer Due Diligence (CDD) procedures, identifying and verifying the identities of both the Settlor and the Beneficiaries, performing ongoing risk assessments, and monitoring for any Suspicious Transactions (STRs). These measures help prevent trusts from being misused as channels for illicit fund flows and uphold the integrity and legitimacy of the financial system.

Under Hong Kong’s trust law framework, trust assets hold an independent legal status, strictly segregated from the personal assets of the settlor, trustee, and beneficiaries, forming an effective legal shield. Once a trust is validly established, its assets are removed from the settlor’s estate, rendering them immune to the settlor’s debts or bankruptcy. The trustee, acting solely as a nominal holder, is prohibited from commingling trust assets with personal assets. Trusts also enable strategic tax planning, leveraging Hong Kong’s lack of capital gains tax and inheritance tax. Finally, through perpetual trust designs, trusts can bypass restrictive inheritance laws, ensuring orderly, multigenerational wealth succession.

Evolution of Hong Kong Trust Law Over a Century and the Current Trustee Ordinance (Cap. 29)

Colonial Legal Foundations (From 1842 Onwards)

1. Legal Origins in the Early Colonial Period (From 1842)

• After Hong Kong became a British colony on August 29, 1842, it adopted the British statutory law, common law, and equity systems.

• 19th-century British trust law reforms, such as the Trustee Act 1850 and Trustee Act 1925, were applied in Hong Kong, forming the foundation of the local trust system.

2. Enactment of the Trustee Ordinance 1934

• Hong Kong’s first systematic trust legislation, modeled on the UK’s Trustee Act 1925, established core trustee responsibilities:

• Duties in asset management and investment restrictions.

• Legal framework for beneficiary obligations.

• Procedures for trustee appointment and removal.

3. 2013: Major Reforms (Current Trustee Ordinance, Cap. 29)

• The Trustee (Amendment) Ordinance, effective December 1, 2013, modernized the 1934 and 1970 laws, with key changes including:

• Reserved Powers: Explicitly allows settlors to retain investment and asset management powers without affecting trust validity.

• Perpetual Trusts: Abolished the rule against perpetuities, enabling trusts to exist indefinitely (unlike the UK’s 100-year or Singapore’s 125-year limits).

• Expanded Trustee Powers: Added implied powers for insurance, agent appointment, authorized investments, and remuneration.

• Anti-Forced Heirship Rules: Excludes foreign forced heirship laws from interfering with Hong Kong trusts.

• Beneficiary Rights Balance: Improved rights to information and trustee accountability mechanisms.

4. 2020: Transition from Traditional to FinTech Trusts

• With the rise of financial technology, UTGL has led the industry, transitioning from traditional trusts to a global leader in FinTech trusts, pioneering a new trust service model:

• One-click management of all assets, offering high-privacy asset protection, flexible global asset allocation, and the ability to invest and manage bills anytime, anywhere.

• UTGL has forged strategic partnerships with top global financial institutions, including BlackRock, JP Morgan, DBS, Mastercard, Visa, Interactive Brokers, Galaxy Digital, Cumberland, B2C2, Tether, Circle, and Chainalysis. These collaborations strengthen UTGL’s market position and drive innovation in asset management and financial services.

• UTGL introduced a global bill payment system and asset-link credit card, revolutionizing asset management and payment services by seamlessly integrating trust services with modern FinTech, enhancing efficiency and global reach.

• Multi-Asset Settlement Capability: Flexible management of digital assets, fiat currency, stocks, gold, and real estate.

Conclusion

The structure and clauses of a trust can be imitated — but true trust is earned through strength, compliance, and professionalism. As a publicly licensed and government-bonded trust institution, UTGL goes beyond traditional asset management. We are committed to integrating legal safeguards, fintech innovation, and advanced privacy protection to deliver a fully comprehensive wealth protection experience.

Powered by AI and blockchain technology, the UTGL one-stop digital trust platform ensures transparency, security, and seamless execution across every asset transaction — enabling 24/7 global wealth management and tax optimization with unmatched efficiency.

Whether you are establishing a trust for the first time or refining an existing wealth structure, UTGL provides tailor-made solutions to meet your needs. We sincerely invite you to begin your trust journey with us today, and let us safeguard and grow your family’s wealth for generations to come.