Singapore VCC insights

Hong Kong Trust vs Singapore Trust: Duration, Heirship Shields, Trustee Licensing and Tax

By VCC Editorial Team · Published 27 October 2026

Short answer: Hong Kong lets trusts created since 1 December 2013 last indefinitely; Singapore caps duration at 100 years. Both statutes protect only reserved investment and asset-management powers, and both shield qualifying lifetime trusts from foreign heirship rules when trustees are local. The sharper differences lie in trustee licensing, trustee liability rules and how each city taxes trust income.

This article is general information only and is not legal, tax or investment advice. For matters needing legal advice, we work with a panel of experienced Singapore law firms.

For a family whose business and relatives span Mainland China, Hong Kong, Taiwan and Southeast Asia, the hong kong trust vs singapore trust choice turns on four points: how long the trust can last, how each statute treats forced heirship and settlor control, who may act as trustee, and how trustees and beneficiaries are taxed. Both are common law jurisdictions that reformed their trust statutes in the same decade, and Hong Kong’s reform expressly had regard to Singapore’s. Sources were checked on 27 October 2026.

Hong Kong trust vs Singapore trust: what are the core statutory differences?

The regimes are closer than their marketing suggests. Hong Kong goes further on duration; Singapore regulates trust business prudentially through a single regulator.

Feature	Hong Kong	Singapore
Core trust statute	Trustee Ordinance (Cap. 29) and Perpetuities and Accumulations Ordinance (Cap. 257), as amended from 1 December 2013	Trustees Act 1967 and Civil Law Act 1909, as amended from 15 December 2004
Duration	Rule against perpetuities abolished for trusts created on or after 1 December 2013; perpetual trusts possible	100 years or a shorter stated period (Civil Law Act 1909, section 32)
Accumulation of income	Rule against excessive accumulations abolished for new trusts (restrictions kept for charitable trusts)	Income may be accumulated for the duration of the settlement (Civil Law Act 1909, section 31)
Reserved powers	Section 41X: investment or asset management functions	Section 90(5): investment or asset management functions
Forced heirship shield	Section 41Y: lifetime transfers of movable property; Hong Kong law; trustee residence or incorporation test	Section 90(2) and (3): lifetime transfers of movable property; Singapore law; Singapore-resident trustees; not available to Singapore citizens or domiciliaries
Trustee licensing	TCSP licence from the Companies Registry (Cap. 615, Part 5A)	Trust business licence from the Monetary Authority of Singapore (MAS) under the Trust Companies Act 2005

How long can a Hong Kong or Singapore trust last?

A Hong Kong trust created on or after 1 December 2013 can last indefinitely; a Singapore trust is limited to 100 years.

Before 2013, Hong Kong’s Perpetuities and Accumulations Ordinance let settlors choose a fixed perpetuity period of 80 years, as the Legislative Council (LegCo) Bills Committee report on the Trust Law (Amendment) Bill 2013 records. The amending Ordinance added section 3A so that the rule against perpetuities and the rule against excessive accumulations no longer apply to new trust instruments. The Government’s press release of 26 July 2013 said the change enables “settlors to establish perpetual trusts in Hong Kong.” Trusts settled before December 2013 keep their original perpetuity period.

In Singapore, section 32 of the Civil Law Act 1909 sets the period at “100 years or such shorter period as may be specified in the instrument” for instruments taking effect on or after 15 December 2004. Our Singapore and Jersey trust comparison reaches the same conclusion against Jersey, which also permits unlimited duration.

The point matters most where the asset is meant to be permanent, such as a family holding company the founder never wants sold. Where perpetual life decides the matter, our family foundation comparison sets out the Singapore alternatives.

Do both cities protect a trust from forced heirship claims?

Yes, on similar terms: each protects a lifetime transfer of movable property to a trust governed by its own law, if the trusteeship is genuinely local.

Hong Kong’s section 41Y, according to the LegCo Bills Committee report, provides that a transfer of movable property held on trust is not affected by foreign inheritance law if the settlor had the requisite capacity. After a committee stage amendment, it applies to trusts governed by Hong Kong law where each trustee is an individual ordinarily resident in Hong Kong, a body corporate incorporated or established in Hong Kong, or a foreign body corporate whose central management and control is in Hong Kong.

Under section 90 of the Trustees Act 1967, a lifetime settlor of movable property has capacity if they have it under Singapore law, the law of their domicile or nationality, or the proper law of the transfer (section 90(1)), and no inheritance or succession rule affects the trust’s validity (section 90(2)). Section 90(3) excludes settlors who are Singapore citizens or domiciled in Singapore, and requires Singapore governing law and Singapore-resident trustees.

Neither shield covers immovable property, and both fail if an offshore trustee is appointed. Families should have Hong Kong counsel confirm the current text of section 41Y, including any conditions on the settlor.

How much control can the founder keep?

Each statute expressly protects only reserved powers of investment or asset management functions, so a founder seeking wider control gains no statutory advantage from either city.

Section 90(5) of Singapore’s Trustees Act 1967 provides that no trust is invalid “by reason only of” such a reservation. Hong Kong’s section 41X, as described in the LegCo report, does the same and adds that a trustee acting on the settlor’s exercise of a reserved power is exempted from liability. In 2013 the Hong Kong Government declined to extend reserved powers to running a family business vested in a trust.

Hong Kong adds a beneficiary protection in section 41W: a remunerated professional trustee cannot be exempted by the deed from liability for its own fraud, wilful misconduct or gross negligence. It applied to new trusts from 1 December 2013 and to existing trusts from 1 December 2014.

A founder who wants to keep running the portfolio usually does so through a company held by the trust, in Singapore often a single family office or a variable capital company (VCC). Where the settlor can revoke the trust for their own benefit, Singapore may tax the income on the settlor, as our analysis of taxation of trusts in Singapore explains.

Who may act as trustee in each city?

Both cities license professional trustees: Hong Kong through the Companies Registry as an anti-money laundering regime, Singapore through MAS as prudential regulation of trust business.

The Hong Kong Guideline on Licensing of Trust or Company Service Providers (October 2022) includes acting “as a trustee of an express trust” in the licensed business. Operating without a licence is an offence under section 53F of Cap. 615 (fine of HK$100,000 and 6 months’ imprisonment); a licence normally runs 3 years. Authorized institutions, licensed corporations whose trust business is ancillary, and accounting and legal professionals are exempt from licensing but not from due diligence and record-keeping duties. Separately, a Hong Kong company that is not a private company may register as a trust company under Part 8 of the Trustee Ordinance, with issued share capital of at least HK$3,000,000 and a HK$1,500,000 deposit or bank guarantee (Companies Registry pamphlet, May 2025).

In Singapore, MAS states that a company acting as trustee of an express trust or providing related trust services “may need to be licensed under the TCA.” A family PTC is exempt, but “private trust companies are required to engage a licensed trust company” for anti-money laundering compliance; see our guide to the Singapore private trust company exemption.

Trustee model	Hong Kong	Singapore
Commercial trust company	TCSP licence; optional registration as a trust company under Part 8 of Cap. 29	Trust business licence under the Trust Companies Act 2005
Bank trustee	Authorized institutions exempt from TCSP licensing	Banks and merchant banks exempt for certain trust services; notify MAS on Form 8 within one month of commencing
Family-controlled trustee company	Depends on whether it carries on a trust business; take Hong Kong advice	PTC exemption; must engage a licensed trust company for anti-money laundering checks
Anti-money laundering rulebook	Schedule 2 to Cap. 615 and Companies Registry guidelines	MAS Notice TCA-N03 (last revised 30 June 2025) for licensed trust companies and PTCs

How are trust income and trustees taxed in Hong Kong and Singapore?

Hong Kong profits tax reaches a trustee only where a trade, profession or business is carried on in Hong Kong. Singapore taxes trust income on the trustee unless resident beneficiaries are entitled to it.

Hong Kong’s Inland Revenue Department states that persons “including corporations, partnerships, trustees and bodies of persons” carrying on business in Hong Kong are chargeable on Hong Kong-sourced profits, excluding capital profits, at standard rates of 16.5% (corporations) and 15% (unincorporated businesses). The Financial Services and the Treasury Bureau confirms “no capital gains tax; no withholding tax on dividends and interest; and no estate duty”; estate duty was abolished for deaths on or after 11 February 2006.

Under the Inland Revenue Authority of Singapore (IRAS) e-Tax Guide “Income Tax Treatment of Trusts (Third Edition)” of 30 January 2026, trust income is the trustee’s statutory income under section 35(11) of the Income Tax Act 1947, taxed as a final tax at the prevailing corporate rate without the partial exemption. Where resident beneficiaries are entitled to the income, they are taxed instead and keep its character for exemptions and foreign tax credits. Foreign trusts (section 13F) and prescribed locally administered trusts (section 13N) sit outside that guide, with conditions to check against the current statute. Estate duty was removed for deaths on or after 15 February 2008.

For most Greater China families, the settlor’s and beneficiaries’ own tax residence matters more than the trust’s domicile; Mainland China, Taiwan and other home jurisdictions apply their own rules, which need local advice.

What transparency obligations follow the trustee?

Both cities require trustees to know, verify and record who stands behind the trust.

The Ministry of Law lists Singapore trustees’ duties: obtain and verify information on the trust and every relevant party (settlors, trustees, protectors, beneficiaries and persons with power over the trust), keep the trust instrument and any letter of wishes, and retain records for at least 5 years after ceasing to act. Trustees outside the MAS regime follow Part 7 of the Trustees Act 1967 and the Trustees (Transparency and Effective Control) Regulations 2017, including telling specified persons such as banks that they act for a trust before transactions above S$20,000. Hong Kong TCSP licensees follow Schedule 2 to Cap. 615 and are subject to Companies Registry inspection.

Which hub fits which Greater China family?

Hong Kong suits a family wanting a perpetual trust administered near Mainland China; Singapore suits a family consolidating banking, family office and trusteeship in Southeast Asia’s time zone. Many use both.

Family profile	Usually points to	Why
Dynastic holding of a family group with no planned sale	Hong Kong	No perpetuity limit for trusts created on or after 1 December 2013
Settlor is a Singapore citizen or domiciled in Singapore	Compare Hong Kong’s section 41Y conditions; Singapore’s section 90(2) is unavailable	Section 90(3)(a) excludes Singapore citizens and domiciliaries from the capacity rule
Family office, bankers and next generation based in Singapore	Singapore	Section 90 needs Singapore-resident trustees; the trustee, PTC and family office sit together
Family that wants a statutory floor on professional trustee liability	Hong Kong	Section 41W bars exemption for a professional trustee’s fraud, wilful misconduct or gross negligence
Holding company being moved between the two cities	Either, decided with the redomiciliation	Trust and company domicile should be aligned deliberately

A workable sequence for the decision:

1. Record each settlor’s nationality, domicile and tax residence, and each beneficiary’s tax residence.
2. Separate movable assets (shares, deposits, fund interests) from immovable property, since neither heirship shield covers land.
3. Decide whether a 100-year life is acceptable or a perpetual trust is required.
4. Decide what the founder must keep: investment powers only, or more.
5. Choose the trustee model and confirm it meets the chosen city’s residence test.
6. Align the holding company’s domicile; our analysis of redomiciliation between Singapore and Hong Kong covers that step.
7. Take legal and tax advice in each jurisdiction and settle the dispute forum; our note on family trust disputes compares the options.

Where the trustee will be a Singapore PTC or will hold a Singapore holding company, our corporate secretarial affiliate Singapore Secretary Services incorporates and maintains those companies and their statutory registers.

Frequently asked questions

Can a Hong Kong trust last forever?

A trust whose instrument takes effect on or after 1 December 2013 can. Earlier trusts keep their original perpetuity period, which could be a fixed 80 years.

Is Hong Kong’s reserved powers protection wider than Singapore’s?

No. Both cover only powers of investment or asset management functions, although Hong Kong expressly protects a trustee who acts on the settlor’s exercise of them.

Does a family trustee company in Singapore need a MAS licence?

Not if it qualifies as a PTC under the Trust Companies (Exemption) Regulations, but it must engage a licensed trust company for anti-money laundering checks, and MAS Notice TCA-N03 applies.

Can a trust in one city hold a company in the other?

Yes. The company stays subject to its own corporate law, and the heirship shields protect only movable property transferred to a trust meeting the local trustee test.

Sources

• Hong Kong Government press release: Trust Law (Amendment) Ordinance 2013 gazetted (26 July 2013)
• Companies Registry: Guideline on Licensing of Trust or Company Service Providers (October 2022)
• Singapore Statutes Online: Trustees Act 1967, section 90
• Monetary Authority of Singapore: Licensed trust companies
• IRAS e-Tax Guide: Income Tax Treatment of Trusts (Third Edition), 30 January 2026

Raffles Corporate Services helps families choosing between Hong Kong and Singapore trust structures with private trust company incorporation, VCC incorporation, family office set-up and ongoing compliance, working alongside the family’s lawyers and licensed trustees. Email hello@rafflescorporateservices.com or Call/SMS/WhatsApp +65 8501 7133, or visit Raffles Corporate Services.

Last reviewed: 27 October 2026. The Editorial Team, Variable Capital Companies Act.