Introduction to Trust
Personal Trusts haves been practiced in one form or another for more than a hundred years. Their basic nature remains much the same, but their role has evolved to meet the needs of each generation
SHOULD YOU USE A TRUST TO PROTECT YOUR ASSETS?
Assets can be put at risk in a number of different ways. These can include business failure, legal action or a relationship breakdown. We also do not know what the future holds. Government policy can change on a whim; bringing risks to the value of those assets we have strived so hard to acquire.
Will we get a Capital Gains Tax or will the Asset Testing Regime be extended to other Government Benefits? We live in volatile times and there are no guarantees the Government policies we have now will be here next year.
WHAT IS A TRUST
A trust is a legal agreement that allows asset owners the flexibility of divesting themselves from these assets, yet still enjoy the use and retain control over them. To continue to do so they will then look to transfer the assets to Trustees of their Trust. The Trustees then hold these assets on behalf of the family group, rather than the individual.
With differing views and various legal and technical complexities involved, the best way to successfully administer and control your trust is to be well versed and knowledgeable in these practices, that we here at Infinity Trustee Berhad, hope to empower you with.
WHAT CAN A TRUST DO
A correctly structured Trust can secure your assets for future generations – in exactly the manner you wish to preserve those assets.
For instance, inherited funds are separate property until they are used within a relationship. At that point they become relationship property and your child could potentially lose half of them through a separation. At the time of your death, your child may be going through some business or creditor issues. If that were the case, your assets could go to satisfy creditors rather than to support your child or grandchildren.
PROTECT SEPARATE PROPERTY
Trusts are often used when individuals have separate property they do not wish to intermingle with their relationship property. If the separate property is placed in a Trust, they no longer own it and it can then be kept separate from relationship property. This is particularly important for those people who have just left a relationship or have property they wish to protect prior to forming a new relationship.
REDUCE RISK OF ASSET LOSS THROUGH BUSINESS FAILURE
Malaysia is a country of small businesses and unfortunately some of them do not trade successfully. Placing your assets in a Trust may help protect your family in the event of a business failure.
REDUCE RISK OF LOSS OF ASSETS THROUGH LEGAL ACTION
As a country we seem to be becoming more litigious in nature. If your business is one that could expose you to a legal action through advice or actions, you may wish to protect your family by placing your assets into a Trust