Versatile trusts serve many needs - and not only for the rich
Are offshore or overseas trusts just for the wealthy? Not necessarily so. In fact, trusts also can be seen as an investment vehicle and can be used to achieve a number of aims.
Tax professionals say using a trust is a suitable option if your family has assets of US$500,000 or more. With Hong Kong property so highly priced, this is a position in which many middle-class families will find themselves.
'Offshore' simply means the trustee is located in a different country from the client and his assets. Usually, the trustee is in a jurisdiction with low tax or no tax, such as the Cayman Islands or the Channel Islands.
Trusts also can be invaluable tools for people planning to emigrate.
Someone moving to Canada, New Zealand, or Britain, for example, should consider using a trust to hold offshore investment assets, a tax professional said.
The rules for the United States and Australia on residents using offshore trusts are much tougher.