Update: succession planning across Hong Kong CIS

Succession planning across the Hong Kong – CIS corridor carries an acute enforcement risk that has sharpened in recent months: forced-heirship claims originating under CIS civil codes can follow assets into Hong Kong structures, and the legal firewall protecting those structures depends entirely on the governing law chosen and the trust or holding vehicle used. Hong Kong's Trustee Ordinance (Cap. 29), as reformed, provides statutory protection against foreign forced-heirship claims – but only where the structure has been built correctly from the outset.

For principals whose families straddle Central Asia, Russia, or the broader Commonwealth of Independent States (CIS, the grouping of former Soviet-era states that broadly share civil-law succession codes and mandatory inheritance rules), the Hong Kong angle is not incidental. It is often the pivot on which the entire estate plan turns.

What has changed – and why it matters now

The legal environment on both sides of this corridor has shifted. In several CIS jurisdictions, courts have taken an increasingly assertive position on the extraterritorial reach of mandatory inheritance shares – the obligatornaya dolya (the compulsory portion reserved by statute for certain heirs under CIS civil codes). Where a principal has moved capital or beneficial ownership into a Hong Kong or offshore holding structure, CIS-based heirs or their representatives have sought recognition of forced-heirship claims against those structures in local proceedings.

Simultaneously, the commencement of Hong Kong's inward company re-domiciliation regime in 2025 has opened a new planning route. An eligible non-Hong Kong company can now re-domicile to Hong Kong while preserving its legal identity. For a CIS family group that holds assets through an intermediate vehicle incorporated elsewhere, re-domiciliation may be a more efficient migration step than a liquidation-and-reconstruction. Parties should verify the current eligibility criteria and commencement details before acting.

The interaction of these two developments – aggressive cross-border forced-heirship claims on one hand, a new structural migration tool on the other – means the action required is both defensive and opportunistic.

Who this affects across the corridor

The immediate audience is broad. It includes any principal who holds meaningful assets through a Hong Kong company or trust while maintaining family connections, residence, or immovable property in a CIS jurisdiction. It equally includes families where the next generation is located in Hong Kong or another common-law jurisdiction while the founding generation remains in the CIS.

Three profiles see the sharpest exposure. First, the founder who has migrated capital to Hong Kong but has not updated the governing law of the family trust or will. Second, the family whose succession instruments were drafted under a CIS civil code and have not been reviewed against Hong Kong law since the 2013 reform of the Trustee Ordinance. Third, the family office that has grown assets across the corridor but whose holding structure pre-dates the CIS courts' current enforcement posture.

In our cross-border private-wealth practice, we regularly see files where the structural documentation is technically sound but the governing-law election is missing or ambiguous. That ambiguity is the entry point for a forced-heirship claim. The 2013 reform of the Trustee Ordinance, which abolished the rule against perpetuities for Hong Kong trusts and strengthened the firewall against foreign forced-heirship claims, is only operative if the trust is properly constituted under Hong Kong law. A document that elects no governing law, or that elects a civil-law system, does not attract the protection.

For further context on how succession structures interact with holding arrangements across offshore centres, see our related briefing on succession planning across Hong Kong and the BVI.

What to do now

The action is a structured review of three documents: the succession instrument (will, trust deed, or both), the governing-law clause, and the holding structure through which the principal's assets are held. That review needs to happen before a forced-heirship claim is filed, not after.

Once a claim is live in a CIS court, the question shifts from planning to litigation. The costs, the time, and the uncertainty all increase sharply. The position in Hong Kong courts – where the Trustee Ordinance's firewall provisions apply – is far stronger when the structure has been maintained correctly throughout.

The sequence we recommend is: first, confirm the governing law of each succession instrument; second, verify that the Hong Kong trust or holding vehicle satisfies the substantive conditions for the statutory firewall; third, where the structure pre-dates the 2013 reform, consider a formal restatement or amendment under current law. For principals considering re-domiciliation of an intermediate holding entity, that step should be modelled alongside the succession plan, not treated as a separate corporate exercise.

Our desk also advises on the residence and domicile dimension. A principal who is tax-resident in a CIS jurisdiction but legally domiciled elsewhere will face a different forced-heirship exposure than one whose domicile and residence are aligned. The interaction with Hong Kong's absence of forced-heirship rules is often the decisive factor. For a fuller treatment of the cross-border estate-planning position, see our analysis of will and estate plan structures covering Mainland China assets, which addresses comparable forced-heirship interactions in a different corridor.

To map the succession and asset-protection options across Hong Kong and the CIS, and to review the firewall position under the Trustee Ordinance, write to us at info@lockhartyip.com. Our private wealth practice operates across the corridor.

Frequently asked questions

How does the cross-border element affect succession planning across Hong Kong and the CIS?

The cross-border element creates a direct conflict between two legal systems: the CIS civil codes impose mandatory inheritance shares that must be satisfied regardless of a principal's wishes, while Hong Kong law – under the Trustee Ordinance – has no forced-heirship regime and provides statutory protection against foreign forced-heirship claims. The effectiveness of that protection depends on the governing law elected in the succession instrument and the manner in which the Hong Kong structure was constituted. Where documents are silent or ambiguous on governing law, the protection may not apply.

Which jurisdiction's law applies to succession planning across Hong Kong and the CIS?

The answer turns on the type of asset and the instrument in question. Immovable property is generally governed by the law of the place where it is situated. For movable assets held through a Hong Kong trust or company, the governing law of the trust deed or company's constitution is the primary reference point. Where the trust elects Hong Kong law and is properly constituted, the Trustee Ordinance's firewall provisions apply. Where a CIS civil code governs – whether by express choice or by default – mandatory inheritance rules of that code will apply to the assets within its scope.

What are the main risks in succession planning across Hong Kong and the CIS?

The three principal risks are: first, an ambiguous or missing governing-law clause that exposes an otherwise sound Hong Kong structure to a forced-heirship claim; second, a structure that pre-dates the 2013 reform of the Trustee Ordinance and has not been reviewed against current law; and third, a mismatch between the principal's legal domicile and tax residence that alters the scope of forced-heirship exposure. In each case, the risk is higher where a claim is already contemplated by potential heirs in the CIS jurisdiction.

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This publication is general information and does not constitute legal advice. For advice on your situation, contact info@lockhartyip.com.

Update: succession planning across Hong Kong and the CIS

What has changed – and why it matters now

Who this affects across the corridor

What to do now

Frequently asked questions

Speak with Lockhart & Yip

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