The Purpose of a Trust Account
The purpose of the trust account is to ensure that assets will be managed correctly according to the wishes of the Settlor. The Settlor is the person who wants the trust created for their beneficiaries.
The difference between a will and trust is that a will is managed after death, while a trust is managed while the Trustor is alive. The courts will not be involved in the distribution of the wealth, unless there is a legal challenge to the Trust Deed. The Trust is responsible for getting this done according to the Trust Deed of the Settlor and the existing Trust Laws of Malaysia.
The Settlor can observe and see if the Trustee is conducting the work effectively and efficiently.
Trust Accounts in Malaysia
Trust accounts in Malaysia are governed by the Trustee Act of Malaysia. This trust law in Malaysia governs the operations of Trusts Accounts in Malaysia.
You will need to know the following terms related to Trust Accounts in Malaysia:
- Trust Deeds
- Trustees, Beneficiaries and Settlors
- Administration of Trusts
- Trust Companies
Trust Laws in Malaysia
Trust Accounts and Trust Companies in Malaysia are governed by the following laws of Malaysia:
- Trustee Act
- Trust Companies Act
- Companies Act
- Anti-Money Laundering, Anti-Terrorism, Financing and Proceeds of Unlawful Activities Act
The Malaysian Government owned and controlled Trust Company is Amanah Raya Bhd. It was created in 1995 from the Government Department of Public Trustee and Official Administrator. It is governed by the following laws:
How to create a Trust Account in Malaysia
The following are the steps to create a trust account in Malaysia.
- Decide on the Type of Trust Company
There is Amanah Raya Bhd, a government owned company since 1995. It was formerly a government department. It is compliant to the Public Trust Corporation Act and related Malaysian Government requirements if any. Then there is Rockwills Trustee Bhd, a private sector premier wills and trusts estate planning company in Malaysia, since 1995.
- Rockwills Trustee
Rockwills has standard documents and processes within any part of Malaysia. And Rockwills has the independent corporate governance and transparency as required by the Laws of Malaysian Parliament, Securities Commission of Malaysia and Bank Negara Malaysia. It is efficient and effective with its large network of offices throughout Malaysia.
- Decide on Type of Trust Required
What type of trust do you want to create? There are trusts to manage assets and properties. And how to distribute the profits, rental income, insurance proceeds or the assets to beneficiaries. An how long a fixed duration of time is the trust to exist. What taxes will impact the trust account? See our comprehensive list of trust types for details.
- Get a Trust Deed Prepared
Contact a licensed Rockwills agent to get a trust deed created.
Ask Levine Lee now, our experienced insurance advisor, for a quick proposal for your estimated needs.
Levine Lee is also a licensed Rockwills Franchisee in Malaysia. She is able to advise you on creating a trust account in Malaysia.
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.