What is a discretionary trust deed?
It is a legal document that establishes a trust in which the trustees have discretion over how and when to distribute income or assets among a class of beneficiaries.
Estate & Legacy Planning
Discretionary Trust Deed
Generate a discretionary trust deed giving trustees flexibility over distributions, reflecting the Trustees Ordinance and Hong Kong's abolition of the rule against perpetuities for new trusts.
- Create a discretionary trust deed for family assets
Create a discretionary trust deed establishing [Trust Name], with [Settlor Name] as settlor and [Trustee Name(s)] as trustees, for the benefit of [Beneficiary Names], covering assets including [Key Assets].
- Create a discretionary trust deed for business succession planning
Create a discretionary trust deed establishing [Trust Name], holding shares in [Business Name] on behalf of [Beneficiary Names], with [Trustee Name(s)] as trustees.
- Create a discretionary trust deed including an appointor role
Create a discretionary trust deed establishing [Trust Name], naming [Appointor Name] as appointor with the power to remove and replace trustees, and [Trustee Name(s)] as trustees for [Beneficiary Names].
Discretionary Trust Deed Generator (Hong Kong)
A discretionary trust deed is a legal document that establishes a trust in which the trustees have discretion over how and when to distribute income or assets among a class of beneficiaries. This free Hong Kong discretionary trust deed generator produces deeds for family asset holding, business succession planning, and structures that include an appointor role, reflecting the Trustees Ordinance (Cap. 29), which was amended in 2013 to remove the rule against perpetuities for new Hong Kong trusts, allowing them to last indefinitely. It is designed for Hong Kong families and business owners setting up a trust structure with the help of their lawyer, often for succession planning given Hong Kong's lack of estate duty. The generator lets you name the settlor, trustees, beneficiaries, and an optional appointor, and describe the assets to be held. Use it as a starting point before finalising the structure with legal advice, since professional trustee arrangements may also need to consider the Trust and Company Service Providers licensing regime.
Frequently asked questions
How is a discretionary trust different from a fixed trust?
In a fixed trust, each beneficiary's entitlement is set in advance. In a discretionary trust, the trustees decide who receives what and when, within the terms of the deed.
Who are the key parties in a Hong Kong discretionary trust deed?
The settlor establishes the trust, the trustees manage it under the Trustees Ordinance, and the beneficiaries are the people who may benefit, often alongside an appointor who can remove and replace trustees.
Can a Hong Kong discretionary trust last indefinitely?
Yes. Since the 2013 reforms to the Trustees Ordinance, new Hong Kong trusts are no longer subject to the rule against perpetuities, so a trust can be drafted to continue indefinitely.
Why do Hong Kong families and businesses use discretionary trusts?
They are commonly used for asset protection and succession planning, particularly given Hong Kong's lack of estate duty, since trustees can adapt distributions to changing family or business circumstances.
Does a discretionary trust deed need to be reviewed by a lawyer?
Yes, given the significant legal and family implications, and because a professional trustee may need to be licensed as a Trust and Company Service Provider, independent legal advice is strongly recommended before finalising a trust deed.