Skip to main content Accessibility help
×
Home
Hostname: page-component-55597f9d44-t4qhp Total loading time: 1.002 Render date: 2022-08-09T02:44:42.130Z Has data issue: true Feature Flags: { "shouldUseShareProductTool": true, "shouldUseHypothesis": true, "isUnsiloEnabled": true, "useRatesEcommerce": false, "useNewApi": true } hasContentIssue true

2 - ‘Breaking Bad’

Settlors’ Reserved Powers

from Part I

Published online by Cambridge University Press:  19 April 2018

Richard C. Nolan
Affiliation:
University of York
Kelvin F. K. Low
Affiliation:
City University of Hong Kong
Tang Hang Wu
Affiliation:
Singapore Management University
Get access

Summary

Settlors, particularly Asian settlors, are often reluctant to relinquish control over their assets. After all, it has taken their whole life’s efforts to build their business empire. While they may find reserved power trusts useful in helping them make a leap of faith, there is a multitude of issues arising from such trusts, such as: what are the legitimate reasons for settlor reserved powers, if any; how far would reserved powers render a trust sham or illusory; and in what circumstances are they unable to protect settlors from the claims of their creditors and estranged spouses. The present chapter seeks to examine these issues critically, and argue that while there are good reasons for having settlor reserved powers trusts, care must be taken to seize the beast by its horns and transform it into a veritable tool for wealth planning. To do so, it will first, examine the settlors’ reasons for reserving powers to himself or a protector; second, consider the legal risks as to validity of the trusts; and third, examine situations in which even if the trust is not declared invalid, it may become ineffective in achieving asset protection for the settlor.
Type
Chapter
Information
Publisher: Cambridge University Press
Print publication year: 2018

Access options

Get access to the full version of this content by using one of the access options below. (Log in options will check for institutional or personal access. Content may require purchase if you do not have access.)

Save book to Kindle

To save this book to your Kindle, first ensure coreplatform@cambridge.org is added to your Approved Personal Document E-mail List under your Personal Document Settings on the Manage Your Content and Devices page of your Amazon account. Then enter the ‘name’ part of your Kindle email address below. Find out more about saving to your Kindle.

Note you can select to save to either the @free.kindle.com or @kindle.com variations. ‘@free.kindle.com’ emails are free but can only be saved to your device when it is connected to wi-fi. ‘@kindle.com’ emails can be delivered even when you are not connected to wi-fi, but note that service fees apply.

Find out more about the Kindle Personal Document Service.

Available formats
×

Save book to Dropbox

To save content items to your account, please confirm that you agree to abide by our usage policies. If this is the first time you use this feature, you will be asked to authorise Cambridge Core to connect with your account. Find out more about saving content to Dropbox.

Available formats
×

Save book to Google Drive

To save content items to your account, please confirm that you agree to abide by our usage policies. If this is the first time you use this feature, you will be asked to authorise Cambridge Core to connect with your account. Find out more about saving content to Google Drive.

Available formats
×