 |
 |
 |
 |
 |
| Islamic Trust |
 |
 |
If you do not want your assets to be distributed according to Syariah laws, CREATE AN IRREVOCABLE TRUST. Assets under a Trust do not go through the estate administration process. In other words, the trust assets will be distributed immediately upon your death. Further, you will have control over the Trust by giving specific instruction on the management and distribution of the assets and also outlining the duties and responsibilities of the Trustee.
1 : WHAT IS A TRUST? Trust is the transfer of an asset(s) to someone while the Settlor is still alive made voluntary as a gift without any consideration or compensation. It is like a Gift Inter Vivos under common law.
2 : WHO IS SETTLOR? Settlor is a person who transfers his assets into trust for the benefits of the beneficiary(ies).
3 : WHO IS BENEFICIARY? Beneficiary is the recipient of trust assets e.g. your children, your spouse, your parents etc.
4 : WHO IS TRUSTEE? Trustee such as AmTrustee Berhad is a party who holds or manages assets on behalf of the Settlor for the benefits of the beneficiary(ies).
5 : WHY SHOULD I SET UP A TRUST? A Trust is set up for a specific purpose, e.g. for the maintenance or educational expenses of your beneficiary(ies) or to protect your assets, investments and properties. You can ensure that your beneficiary(ies) will receive their entitlement according to your instructions.
6 : WHAT ARE THE ADVANTAGES OF A TRUST?
• Trust can avoid costs, delays and other problems of administering a deceased’s estate with Wasiat or without
Wasiat. Please note that upon death, the ownership of the trust asset passes through the trust to your
beneficiary(ies) without the need to obtain the Grant of Probate or Letter of Administration from the High
Court.
• Trust allows financial affairs and transfer of assets to remain private as there’s no need to file an inventory of
assets or inheritance provisions with the High Court.
• The Settlor has the freedom to distribute the trust assets to anyone of his choice including a non-Muslim.
• Avoids costly and long estate administration process
7 : ONCE A TRUST IS CREATED, WILL THE ASSETS HELD UNDER TRUST BE FROZEN UPON DEMISE?
No. Your assets held on trust will not be frozen upon your demise.
8 : DOES THE DISTRIBUTION STATED IN THE TRUST CONFLICT WITH THE WASIAT? No. Trust arrangement is outside the estate.
9 : CAN A TRUST PROTECT MY ASSETS FROM CREDITORS? Yes, provided the trust is irrevocable (subject to Bankruptcy Act 1967).
10 : WHAT ARE THE FEATURES OF A TRUST?
• This Scheme is done through verbal declaration (“Ijab”) by the Settlor and the Beneficiary(ies) verbally accepts
(“Qabul”) possession of the property.
• Upon performing the Ijab and Qabul, whatever terms including the appointment of the trustee can be included
in an agreement (Trust Deed).
• The process is done voluntarily and without any consideration.
• The assets distribution is according to the Settlor’s wishes and not subjected to the Faraid Ruling.
|
|
Recommended Products: Wasiat Writing | Estate Administration |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
 |