PERSONAL & BUSINESS SOLUTIONS
Trust Solutions
Trust Solutions
A trust is a financial planning tool. It used to manage assets of a person, called a Settlor. The Settlor creates the trust to ensure their assets are distributed and managed according to the wishes of the Settlor. There are many types of trusts, depending on the purpose of the trust.
Settlors are people who have assets or certain beneficiaries in mind. They want to be sure that these assets will be distributed to their beneficiaries of choice when the terms of the trust deed is met.
The Settlor transfers their assets into a trust. This is called a private trust. This transfer is done when the Settlor is still alive. This means the new legal ownership of the assets is the trust.
The Settlor no longer owns the assets once the assets are transferred into the trust. But the Settlor controls the assets by the instructions the Settlor decides in the Trust Deed.
The manager of the trust is called a Trustee. A trust deed is a legal document that has all the instructions and terms and conditions of the trust. The trust deed controls the operations of the trust, within the scope of the laws of Malaysia.
The Settlor will name the beneficiaries of the trust. The Settlor gives instructions to the trust on how the assets should be managed or distributed to the beneficiaries.
Types of Private Trusts in Malaysia
The primary type of trusts in Malaysia for families and shareholders are private trusts. A private trust is a trust where the beneficiary (the person or entity which receives the equitable title in the property) is private and non-charitable. Trustee can administer the day-to-day financial needs of the beneficiaries, from basic living, health care to educational costs, as you wish. Through our Private Trusteeship, you will never have to worry about these for your children and grandchildren. There are several types of trusts in Malaysia, by beneficiary types as follows:
- Family Trusts
- Business Continuity Trusts
- Special Purpose Trusts
Family Trusts
A family trust is any trust you set up that benefits members of your family. It’s often used as a legally binding agreement to establish who will receive portions of your wealth after you pass away.
Business Continuity Trusts
This type of trusts is ensure that the surviving shareholders of the business take over the dead shareholder’s shares. The trust will buy the shares and distribute the shares to the existing shareholders. The trust than pays the beneficiaries the money from the sale of the shares. The details are in the business continuity trust page.
Special Purpose Trusts
This type of trusts are created for immediate distribution. The beneficiary could be anyone or anything. It could be a charity, a relative, a friend or anything that will benefit from the proceeds of the trust.