“Liberalisation of Trust Laws in Hong Kong: Continued Growth or Concealed Wealth?”
Rebecca Lee
Asia-Pacific Trusts Law, Volume 3, Boundaries in Context, Part IV, Chapter 17
Hart Publishing
Published online: May 2025
Abstract: This chapter critically examines the challenges faced by the liberalisation of trusts law in harmonising traditional trusts principles with the growing demand for settlor control and flexibility. The study focuses on two recent proposals put forth by the Law Society of Hong Kong, namely the legalisation of non-charitable purpose trusts and the legislative enshrinement of settlor reserved powers. These proposals serve as examples to illustrate the evolving trusts landscape, which aims to sustain the growth of the trusts industry while addressing the complication arising from concealed wealth. This chapter argues that non-charitable purpose trusts are conceptually feasible, their scope can be carefully delineated, and their practical utility outweighs the moral and social apprehensions surrounding them. In contrast, reserved powers trusts present more complex issues, and its wholesale acceptance deserves more close examination.