USING A TRUST IN ESTATE PLANNING

WHY YOU NEED A TRUST ?

Key Benefit:

• Assets held on Trust are not frozen upon demise

• Assets not subjected to Probate/Letters of Administration

• Beneficiary of your choice

• Protection of assets from the reach of creditors

• Flexible instructions can be included

Assets held on Trust are not frozen upon demise

The assets in your name are frozen upon your demise. As a result your loved ones will not have immediate access to these assets as there is a legal process to follow before distribution can be made. Therefore, by placing selected assets in a Trust, there would be immediate cash flow to your loved ones upon your demise.

Assets not subjected to Probate/Letters of Administration

As the assets in the Trust are not in your name, it will not form part of your estate. Therefore it will not be subjected to the process of Probate/Administration. This gives you and your beneficiaries security and peace of mind. Furthermore placing selected assets under a trust also gives you the freedom to leave behind specific instructions with respect to the assets in the Trust to complement those left in your Will.

Protection of assets from the reach of creditors

Since the assets held under a Trust are not in your name, it will be completely protected from the reach of your creditors provided that you did not set up the Trust with a malicious intention to deliberately defraud your creditors. However it must be understood that this protection only applies to irrevocable trust.

Beneficiary of your choice

As the settlor you can exercise full discretion to determine who should benefit from the trust .The beneficiary of the Trust can be an individual ,a corporation , a charitable organization or even individual(s) who are not related to the settlor.

Flexible instructions can be included

As to the distribution of the Trust assets , you can decide on how the income and/or the capital is to be distributed to the beneficiaries of the Trust .A properly planned Trust is actually a gift to the intended beneficiaries based on the settlor's own terms and conditions which will be executed by a competent and responsible Trustee like Rockwills Trustee Berhad.

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