Insurance, Trusts and Wills in Malaysia
Insurance, Wills and Trusts are powerful estate planning tools in world. These legal documents enable people to create assets (Insurance and Trusts) and distribute the assets (Wills and Trusts) according to their wishes. In Malaysia, Insurance, Wills and Trusts are governed by the Laws of Malaysia.
The Insurance Trust
From these estate planning tools, a powerful combination of Insurance and Trust creates the Insurance Trust. This a financial tool that creates an asset and vehicle based on the instructions and wishes of the Settlor (the person creating the Trust).
Question is, how do we create it, how does it work and who can benefit from it?
We will answer all these questions and more in the frequently asked questions (FAQ) list below.
The Insurance Trust FAQ
The purpose of an Insurance Trust is to name the Trust as the beneficiary of the insurance proceeds, in the insurance policy. This means the insurance policy is assigned to the trust to receive the proceeds of the insurance policy.
In the event the Insurance is triggered to payout, the proceeds will be paid into the Insurance Trust. The Insurance Trust will then distribute or manage the insurance proceeds according to the Trust Deed of the Insurance Trust. This Trust Deed is the instructions of the Settlor, who created the Insurance Trust.
The beneficiaries of the Insurance Trust can be the Settlor and their family members. The Settlor can be included, in the event the Settlor becomes totally disabled, triggering the life insurance payout. The Trust Deed will manage the proceeds to the Settlor. If the Settlor then dies, then the proceeds will be distributed according to the Trust Deed.
Life insurance and Critical Illness Insurance policies can be added to the Insurance Trust. Contact our expert insurance agent who knows trusts and insurance assignee requirements.
If you want the insurance to be distributed effectively, you have to ensure the insurable interest of all the parties in the trust concerned. This means the relationship between the life assured, Settlor, Beneficial Owners and Beneficiaries of the Trust. There are other types of trusts in Malaysia besides Insurance Trust.
An insurable interest of a Trust is evidence that the related parties in the trust will suffer a financial loss if the insured life is totally disabled or deceased. In this case the related parties should have a direct relationship with the insured. This will depend on the insurance policy requirements and trustee deed requirements. Which is why an experienced insurance agent and trust estate planner is important to advice you in this matter.
Keyman insurance is to cover for cashflow in the death of a Keyman in the company. Term Life Insurance is normally used for Keyman Insurance. The Buy-Sell Trust uses the same type of life insurance to fund the Share purchases to rebalance the shareholding. This purpose of life insurance use for shareholding is called a Buy-Sell Agreement.
A Buy-Sell Trust is a specific type of trust that uses the insurance proceeds to only buy back the shares to redistribute to the surviving shareholders per the Buy-Sell Agreement. An Insurance Trust is to distribute the proceeds to named beneficiaries per the Insurance Trust Deed.
A Pet Trust uses Life Insurance to fund the Pet Trust. The Pet Trust will assign a guardian for the pet. And use the insurance proceeds to pay for the food and care of the pet. The Pet Trust will pay on a regular basis. And ensures the money in the Trust is well managed and grows where possible. An Insurance Trust is to distribute the proceeds out the beneficiaries per the Trust Deed terms.
Yes for reputable Life Insurance policies as accepted or agreed to by the Trustee and the Insurance Company.
Rockwills Trustees has been in Malaysia since 1995 and is a preferred Trustee for people in Malaysia. It is a highly reliable and reputable Trustee nationwide with over RM25 Billion worth of assets under Trusts. It has over RM50 Million worth of shareholder’s funds. And it has a Professional Indemnity Insurance coverage of RM100 Million. Rockwills has its estate planners and franchisees throughout Malaysia, all with a single and consistent operating system and forms nationwide.
An expert Rockwills Franchisee, Estate Planner and Insurance Agent can assist you. Ms. Levine Lee from Red Cover Life Planning is an expert Rockwills Franchisee as well as an expert AIA Insurance agent in Malaysia for over 15 years. You can contact Levine Lee at +6012-684-0948.
Rockwills Trustee Services
Rockwills Private Trust Services
Rockwills provides a range of services for wealth distribution management. This product offers a Private Trust setup service in Malaysia.
Contact Rockwills Malaysia Franchisee and Estate Planner Levine Lee
Rockwills franchisee Levine Lee is available to advice, guide and plan your estate administration needs. Whether its will writing services or trustee services.
You can call or WhatsApp to Rockwills franchisee Levine Lee at +6012-684-0948 or send in the form below. She will get touch with you based on your request in the form.
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