FAQ - Trust
A Trust allows you to set aside assets for the benefit of people or causes you care about. For example, you can create a family trust to provide for your children’s education, your parents’ living expenses, or even charitable donations. Assets in a Trust are managed separately and do not form part of your estate, making the transfer to beneficiaries smoother and with less hassle.
If you become unable to manage your affairs due to critical illness or permanent disability, a Trust ensures your assets are professionally managed on your behalf. It provides financial stability and peace of mind, especially when trusted family members may not be available to step in immediately.
A Trust can also be structured to cover essential needs such as nursing care, medical expenses, and daily living costs— ensuring you are well taken care of without burdening others.
A Trust can play a vital role in your business succession plan. For instance, a Buy-Sell Trust allows you and your business partners to establish clear, legally binding terms for the transfer of ownership in the event of death or disability. This ensures a smooth transition of business control, protects the company’s continuity, and guarantees that your family receives fair value for your share—providing them with financial security while avoiding potential disputes or disruptions.
Yes. If you own rental properties, you can structure a Trust to distribute rental income directly to your spouse, children, or loved ones. This creates a steady, tax-efficient income stream for them while ensuring your assets are properly managed.
Yes. A Pet Trust allows you to appoint a guardian and allocate funds for the care of your beloved pets if you are no longer around. This ensures your pets’ welfare, from food and shelter to veterinary care, is looked after according to your wishes.
An Insurance Trust helps manage and distribute insurance proceeds in a structured way. It can provide for your children’s education, medical needs, or your parents’ living expenses. You can also use part of the payout to settle debts and even give instructions on how the funds should be invested.
A Will takes effect only after you pass away, while a Trust can take effect during your lifetime or after. A Trust also avoids probate delays, meaning your beneficiaries can access funds much faster compared to waiting for a Will to be processed.
Yes. Because the terms of a Trust are clear and legally binding, it leaves little room for arguments. This helps prevent conflicts among family members and ensures your assets are used exactly as you intended.
Yes, if it is a revocable Trust, you can make changes or even cancel it. However, an irrevocable Trust generally cannot be altered once created, which provides stronger protection of assets from creditors or claims.
A Trust is managed by a Trustee, whom you appoint. This can be a trusted individual, a professional, or a corporate trustee. Their duty is to act in the best interest of the beneficiaries and follow the instructions set out in your Trust deed.
Yes. While Malaysia does not currently have inheritance tax, a Trust can still help you structure your assets in a tax-efficient way, particularly if you have properties or investments overseas where estate duties may apply.
If your children are under 18, a Trust allows you to provide for their education, healthcare, and living expenses. Instead of receiving a lump sum, funds can be distributed gradually to support them as they grow up.
Yes, certain types of trusts—particularly irrevocable trusts— can offer strong protection against creditors, lawsuits, and financial claims, helping to safeguard the assets you’ve set aside for your beneficiaries. However, the extent of this protection depends on how the trust is structured and must comply with the relevant laws and legal principles in Malaysia.
A Special Needs Trust can be created to ensure your child receives lifelong care and financial support without affecting their eligibility for government assistance or benefits.
Unlike a Will, which requires probate and can take months or years to process, assets in a Trust can often be distributed immediately upon a triggering event, such as your passing or incapacity.
Yes. A Charitable Trust allows you to dedicate assets to causes you care about. This can be done during your lifetime or after, ensuring your legacy continues to make a difference.
The cost depends on the complexity of your estate and your objectives. While there is an upfront cost, a Trust often saves significant money in the long run by avoiding disputes, probate delays, and mismanagement of assets.
Absolutely. Trusts are not just for the wealthy. Even modest estates can benefit, especially if you want to ensure financial support for children, elderly parents, or dependents without complications.
Not necessarily. With a revocable Trust, you retain control and can make changes anytime. Even with an irrevocable Trust, you decide the rules at the start, and the Trustee is legally bound to follow them.
The best time is now. Trusts are most effective when planned early, while you are healthy and in control. Setting it up in advance ensures your loved ones are protected without delay, confusion, or financial stress.