A multi-generational family office structured across HK and Singapore

Family Background and Objectives

The client is a Chinese family with three generations of members. Core assets include listed company equity, real estate investment portfolios, and private equity fund shares, with total assets of approximately USD 200 million. The family founder is advanced in years and wishes to achieve orderly wealth succession while maintaining moderate control over family assets, as well as providing support for the third generation's education and entrepreneurship.

The family's core requirements include: asset protection (isolating family members' personal debt risks), tax efficiency (legally optimizing the tax burden of cross-border assets), succession flexibility (customizing distribution plans according to each family member's specific circumstances), and privacy protection (avoiding excessive exposure of family wealth information).

Structural Design

After three months of due diligence and scheme design, the Winson Consulting team built a complex "dual-jurisdiction, multi-trust, SPV cluster" structure for the client.

At the top level is a family holding company registered in the Cayman Islands, holding the family's core assets and intellectual property. Beneath the Cayman holding company, two parallel asset-holding lines were established: one through a Hong Kong trust holding Asia-Pacific listed company equity and real estate; the other through a Singapore trust holding global private equity and hedge fund investments.

Under each trust, multiple SPVs (Special Purpose Vehicles) were further established, each holding different types of assets. For example, under the Hong Kong trust, three SPVs were set up: one holding Mainland A-share listed company shares, one holding Hong Kong commercial real estate, and another holding the family's residential property.

Governance Mechanism

To ensure harmony and stability during the wealth succession process, we embedded multi-layer governance mechanisms into the structure. First, a family constitution was established, clarifying family members' rights and obligations, basic principles of asset distribution, and family dispute resolution mechanisms.

Second, a family council was established, composed of the founder, second-generation representatives, and independent professional advisors, responsible for reviewing major investment decisions and family affairs. The family council meets quarterly to ensure family members' right to know and participate in wealth management.

Finally, a Protector was appointed in each trust, empowered to replace the Trustee, modify beneficiary lists, and adjust distribution schemes. The Protector is jointly held by the family founder and an independent lawyer, ensuring the independence and fairness of trust management.

Implementation Results

• After structure completion, the legal holding relationship of the family's core assets was transferred from personal names to the trust structure, achieving effective asset isolation

• Through the dual-jurisdiction layout of Hong Kong and Singapore, the family's investment portfolio tax efficiency improved by approximately 15%

• The third generation's education fund and entrepreneurship fund were established through independent sub-trusts, ensuring dedicated use of funds

• The establishment of the family constitution and governance mechanisms significantly reduced potential conflicts among family members

Ongoing Services

Structure completion is not the end of service. Winson Consulting provides ongoing family office advisory services for this family, including quarterly investment portfolio reviews, annual tax compliance audits, and continuous optimization of family governance mechanisms. We believe that wealth succession is a long-term endeavor, not a one-time transaction.