PRIVATE TRUST SERVICES

Setting up a Private Trust or Hibah Trust is an extremely important and complex process for most people and need a close and long term relationship with the Trustee for years to come. As such, selecting the right Trust Company would be an essential and important part of your trust structuring process.

Trust allows a person among other things, to allocate some or all of his/her assets for the benefit of his/her loved ones, either upon the person’s demise OR even during the person’s lifetime. The trust assets will be used for the beneficiaries and purposes as stipulated in the Trust documents, such as covering the costs of education, cost of living, financial aid/support for family members or for even to fulfill charitable intentions. The types of assets that one can use to create a trust can be anything that has value (Life Insurance Policies, Shares, Cash, and Landed Properties). A person creating the Trust (Settlor) must be the legal owner and the legal ownership would be transferred to PB TRUSTEE SERVICES BERHAD to hold on trust for the Beneficiary(ies) upon execution of the Trust Documents.

Trust is an essential tool which completes the wealth/estate planning process of an individual. Apart from creating and enhancing wealth, trust preserves and distributes wealth during and after one’s lifetime. The Trust service ranges from protecting loved-ones from unforeseen risks and circumstances to a centralized administration point for family members and heirs to receive their inheritance on a timely manner, whilst ensuring professionalism, impartiality and accountability by an independent Trustee.

The benefits of setting up a Trust include or IMMEDIATE DISTRIBUTION OF ASSETS upon demise ACCORDING TO SETTLOR’S INSTRUCTIONS/INTENTIONS, SAFEGUARDING THE INTEREST OF CHILDREN OR MINORS OR SPECIAL PERSONS, continue or proper management of assets or wealth or estate, steady income stream to provide for future generations, efficient and effective decisions are made on payments and investments matters and PROFESSIONAL/IMPARTIAL TRUSTEE ACTING IN THE BEST INTEREST OF TRUST BENEFICIARIES.

TYPES OF TRUSTS

• Property Trust
  For the management and transfer of landed property or real estate. Under a property trust, legal ownership of a landed property must be transferred to PB Trustee Services Berhad upon execution of the Trust Deed. The Trust Deed will specify the manner in which PB Trustee Services Berhad will hold, manage and distribute the property. The Property must be free from any encumbrances.
• Insurance Trust
  
  Absolute Assignment
  A vehicle for Life Insurance proceeds to be collected and effectively managed and distributed upon Settlor’s demise. There is no annual fee that the Settlor need to pay PB Trustee Services Berhad until PB Trustee Services Berhad has received the insurance proceeds.
  
  S. 166 Nomination Trust (only applicable for conventional trust)
  Mostly beneficiaries under S.166 Nomination Trust are spouse and/or children due to concern over their maintenance, education, living expenses and medical needs, when the provider is not around to provide for them. However, merely nominating may not be advisable even so if you are a single parent and your child is a minor. The insurance proceeds may go to wrong hands and your child’s future will be at stake. It is advisable that you appoint PB Trustee Services Berhad as Trustee when you name your minor child as beneficiary of your life insurance policies.
• Maintenance Trust
  A Trust funded with mixed class of assets i.e. cash, properties, shares, etc to provide for the maintenance, living expenses, educational needs and other periodic financial needs of the Beneficiaries.
• Charitable Trust
  A Trust with mixed class of assets to provide for the furtherance and development of any charitable organisation and/or purposes permitted and recognized by law.
  

BENEFITS

• A personalized approach for the protection, preservation, accumulation and distribution of wealth and enhance the concept of protection and succession planning.
• Asset(s) are held in safe custody, ensuring professionalism, confidentiality and are being protected to meet specific needs.
• Trust fund is held in safe custody by PB Trustee Services Berhad for the beneficiaries and is properly invested and/or managed in the interim period pending distribution.
• Beneficiaries who are minor and incapacitated are protected from unreliable guardians who may otherwise have unchecked control over the application of the beneficiary’s asset/funds.
• Unlimited choice of beneficiaries and for Muslim customers, the gift of asset during their lifetime to beneficiaries of their choice will not be restricted by the laws of ‘Faraid’.
• Asset(s) will not be frozen upon client’s demise and it avoids the necessity for the Grant of Representation i.e. immediate distribution of asset(s) held under trust.