Great wealth has been generated in China in recent decades and now many successful Chinese business founders are focusing on family business succession planning. Historically, Asia has been unfamiliar with the use of trusts, with founders reluctant to hand over control to a trustee. But many Chinese business founders have recognised that trusts are effective and flexible succession planning vehicles, allowing them to continue to be involved in the management of their businesses without over-interference from the trustee. Sofia Shen, Vice President, Maples Fiduciary, explores the benefits of the Cayman Islands STAR trust and its ability to separate ownership from control in a way that satisfies founders and investors.
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