You learn Something New Each Day

Well, each day seems to bring on a new twist to the Stanley Ho saga. I've lost track of who's suing who, who's on whose side....: http://trustprofessioninasia.blogspot.com/2011/01/dead-men-tell-no-tales.html

Well, just when we thought we have heard the last of Tony Chan as his "totally dishonest" Appeal failed, he is now seeking police assistance as he alleges evidence tampering causing him lose the case in the first place: http://law.lexisnexis.com/webcenters/hk/News/Main-Topic-1/Fung-shui-master-loses-appeal-over-billionaires-will and http://trustprofessioninasia.blogspot.com/2011/01/oh-my-piggy-wiggly-boo-poo-ga-ga.html

And among the commentators, is this Wall Street Journal (HK) entry by a Ms Cathy Yan: http://blogs.wsj.com/hong-kong/2011/01/27/hong-kongs-feuding-families/


"Institutional structures for wealth planning and succession are relatively new to Hong Kong — and far less accepted than in the West. Setting up trusts years in advance of the death of a patriarch used to be a way to avoid inheritance tax. But the legal safeguard has become even less popular after inheritance tax was abolished in 2006.

- The earliest family trusts in HK that I have seen date back to the 1960s, There are records of trusts in HK well before that. How relative is that? As with private arrangements, who knows they exist until they are compelled to disclose? Some are disclose under Securities rules (of listed companies), others via other precedings.... Just because you can't see it or find it doesn't mean it's there not there, or existed at some point in time.


- Less accepted, sure.....but I believe every one of those families you have listed have had trust structures somewhere, sometime. The effectiveness of their trusts for succession planning is another matter. My experience is people are still tax driven and the succession issues planning usually takes a back seat. Understandable as the possible tax savings benefits are usually more immediate and quantifiable but as this article helps illustrate, tax may be the least of the worries

- HK didn't have an Inheritance tax. There was an Estate Duty, which isn't the same thing.

- [Trusts] Even Less popular? Sure, take away one of the drivers for creating trusts and some will lose and some will win. But overall, I seem to be getting busier, how about you?

Can't believe every you read can you?