【Prenuptial Asset Trust for Remarried Families: The “Watershed” Between Emotion and Rationality】

efore remarrying, Mr. Wu owned equity in a tech company (valued at HK$20 million) and two properties acquired prior to marriage.
To protect the interests of his daughter (aged 16) from a previous marriage and to mitigate the risk of equity division,
he placed 89% of the dividend rights from his company shares and the income rights from the properties into a trust.

Key terms of the trust include:

• Dividends from equity will be prioritized for covering his daughter’s overseas education expenses (capped at HK$500,000 per year).

• 60% of the rental income generated after remarriage will be allocated to household expenses.

• If the marriage lasts more than 10 years, the spouse will be gifted one of the properties.

• The daughter will inherit the income rights at age 30, while voting rights will be held in trust until she turns 35.

By setting up a family trust, Mr. Wu achieved a balance among complex family relationships.

• Pre-emptive inheritance protection:
  The income from core assets is designated for the child, ensuring her rights are unaffected by changes in parental marital status.

• Flexible incentive design:
  The trust includes a marriage duration clause to provide reasonable expectations for the spouse.