Abstract
This article examines the treatment of discretionary trusts in divorce, with reference to the recent decision of Hong Kong’s Court of Final Appeal in the case of Kan Lai Kwan v Poon Lok To Otto and HSBC International Trustee Limited (‘Poon’). In particular, it considers the evolution and application of the Charman test for determining whether the assets of a discretionary trust will be a ‘resource’ attributable to a spouse in ancillary relief.
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