Trust is a kind of relationship in which a person, known as a trustor, transfers the legal ownership of some kind of valuable assets, to another person, known as a trustee, who in turn controls and manages them for the benefit of another person, known as a beneficiary.

In other words, a trust comes into effect when settlor or the original owner of the trust transfers his assets to trustor for the use of beneficiary. A trust is usually created as an instrument in writing, which should state matters like object of the transfer of the asset, subject, and duties and responsibilities that should be executed by trustee for beneficiary.

Settlement of trusts is done for a myriad of purposes such as protection against high taxation and economic instability, confidential purposes, to organize collective investments, to protect assets, and management planning. In addition, a trust is also created when assets cannot be held personally.

The Trust settlement law in Hong Kong is primarily modeled on the basis of the principles of the English Trustee Act 1925, and is included in the provisions of the Trustee Ordinance (Chapter 29.)

Among the key points regarding Trust Law in Hong Kong are: