【Asset Protection Trust for Divorced Individuals: A “Firewall” Against Marital Risks】

After her divorce, Ms. Huang received HKD 3 million in cash and an apartment valued at HKD 2 million.
She has sole custody of her 8-year-old daughter and is concerned that a future remarriage may lead to disputes over property.
At the same time, she wants to ensure her daughter’s quality of life and education before adulthood.
Additionally, Ms. Huang plans to invest part of her assets in stocks, but lacks professional investment knowledge and worries that market risks may compromise her daughter’s financial protection.

Ms. Huang placed all HKD 5 million of her assets into a trust, naming her daughter as the sole beneficiary.
The trust stipulates a monthly distribution of HKD 15,000 for living expenses for the mother and daughter until the daughter turns 22.
HKD 1 million is earmarked as an education fund, to be disbursed by academic year in installments.
The remaining HKD 4 million is to be invested by the trustee using a portfolio consisting of 60% bonds, 30% conservative funds, and 10% cash.
Any annual return exceeding 5% allows Ms. Huang to withdraw 30% of the excess as a medical reserve fund.
If Ms. Huang remarries, trust assets cannot be used to repay her spouse’s debts.
Furthermore, the trust beneficiary cannot be changed without dual approval from the guardian (Ms. Huang) and the trustee.

By establishing a family trust, Ms. Huang successfully safeguarded her assets post-divorce.

Isolation from Marital Risks:
Clearly defines trust assets as separate from any future spouse’s entitlements, preventing asset mixing and disputes.

Professional Investment and Layered Protection:
Trustee-managed, stable investment strategy with tiered disbursements for living expenses, education, and emergency needs.