1 1 creating a wealth preservation blueprint for your loved ones private trustee services rhb...
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Creating a Wealth Preservation Blueprint for your Loved Ones
Private Trustee ServicesRHB Trustees Berhad
(formerly known as OSK Trustees Berhad)
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Private Trustee Services
At RHB Trustees Berhad, we believe in planning ahead…
…by using our Private Trustee Services, you can protect your loved ones and your assets!
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WHAT IS A TRUST?
Private Trustee Services
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What is a Trust?It is where you (“Settlor”) settle assets to the Trustee who is under a legal obligation to hold and manage
assets for the benefit of your beneficiaries for a duration of time.
Trustee
Trust Deed
Beneficiary
Funding of the TrustYou can use any asset that is free from
encumbrances or lien. Commonly used assets include:
• Cash
• Insurance policies
• Unit trust
• Stocks and Shares
• Landed property
Assets transferred during the Settlor’s lifetime to
Trustee holds and manages the trust assets
Enjoys the benefits of the trust
Written instructions on terms of
Trust
Settlor
Private Trustee Services
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1) Distribution according to your instructions• Ensure proceeds are used for the actual intended purpose(s) and
beneficiaries
• You can decide on when and how to distribute
• The trust can be tailor-made to meet various needs and objectives
2) Immediate usage of funds and easy to create• No Probate or Letters of Administration is required
• Fund is not frozen upon demise
• Requires only payment of a small insurance premium to create a large trust fund (for Insurance Trust)
Private Trustee Services – Why Set Up A Trust?
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3) Choice of beneficiaries• Any persons
• Any organizations
• Inheritance (Family Provision) Act 1971 does not apply
4) Creditor proof• For irrevocable trust only
• After 5 years upon creation of trust
• Full protection against creditor during bankruptcy
Private Trustee Services – Why Set Up A Trust?
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5) Applicable to Muslims• Can be used to distribute assets to the beneficiary(ies) of choice
• Exempted from Faraid distribution (for irrevocable trust only)
6) Confidential• Terms of the trust are confidential to ensure privacy
• It is a private document between the Settlor, Trustee and Beneficiary, unlike a Will (which becomes a public document when applying for Probate)
Private Trustee Services – Why Set Up A Trust?
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Our Private Trustee Services
Private Trustee Services
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Insurance TrustInsurance Trust Business SuccessionTrust
Business SuccessionTrust
Investment Investment CharityCharity
Private Purpose Trust
Private Purpose Trust
RHB’s Private Trustee Services
Private Trustee Services
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SettlorSettlor Insurance Policy
Insurance Policy
Absolute AssignmentAbsolute
Assignment
RHB TrusteesRHB Trustees
BeneficiaryBeneficiary
Trust DeedTrust Deed
(Contains the terms of the trust) (Holds and
manages trust fund)
Insurance Trust - Structure
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This Trust allows the Settlor to:
• Distribute insurance proceeds to anyone or organization
• Have multiple levels of beneficiaries
• Determine the percentage the beneficiaries receive
• State any legal conditions for the income to be enjoyed
• Have staggered payments to the beneficiaries
• Consolidate multiple insurance policies into the trust
• Proceeds are exempted from Faraid Distribution
Insurance Trust
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SettlorAny Assetfree from
encumbrancesTrustee
Beneficiary(ies):• Individual• Charitable organization
Trust DeedFulfill the various
objectives of the Trust
• Education expenses
• Lifestyle and maintenance
• Charitable objectives
• Successive generations
• Creditor protection
• Investment
Trust Assets can be investedTrust Assets can be invested
Private Purpose Trust - Structure
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• A multi-purpose and flexible trust that protects your wealth and assists you in your estate, investment, retirement, and education planning
• Multiple type of assets that are free from encumbrances can be settled into the trust
• It can be catered to benefit successive generations
• Trust can be customized to cater for various needs
Private Purpose Trust
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Surviving partners and heirs of deceased partner can’t get along Heirs of deceased partner can’t or are unwilling to contribute to the business Heirs of deceased partner interferes in the management of the business Heirs of deceased partner sells their stake in the business to outside parties Agreement can’t be reached on selling price
What are the potential problems when a partner dies?
Business Succession Trust
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• Guarantees sale of share of partnership at a full and fair value.
• Provides a smooth transfer of partner's interest at death or disability with the implementation of a trust deed
• Ensures that non-liquid stock is converted to liquid income, providing a fund for the benefit of the deceased's family.
The Objectives
Business Succession Trust
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A
B
C
Life InsurancePolicy (on their
own life)
Buy-Sell Agreement
Trust Deed &Power ofAttorney
Absolute Assignment
A
BC Individual Trust Deeds
RHB Trustees
Business Succession Trust - Structure
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It obligates:
Surviving shareholders to buy; and Personal Representative of deceased
shareholder to sell a deceased
shareholder’s stake in the business
BUY-SELL AGREEMENT
Business Succession Trust
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Transfer DeceasedShareholder’s shares
to remaining shareholders
Pays shares consideration to
Deceased shareholder’s
estate
RHB Trustees
Collects proceeds
pays
Survivingshareholders
notifies Insurance Co.
THE TRIGGER EVENT
Business Succession Trust
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Why Choose RHB Trustees?
Private Trustee Services
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Our People – Our team’s ability to combine our legal expertise with knowledge in financial planning
Our Products – We offer a variety of innovative trust products to provide clients with wealth preservation and estate planning services
Our Brand Name – We are an established trust company backed by RHB Banking Group and has been continuously creating awareness of trusts by way of seminars and articles
Our Marketing Channels – We have a strong distribution network with thousands of agents nationwide
RHB Trustees’ Competitive Edge
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Our Wide Range of Services
Private Trustee Services
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1. Will / Wasiyyah Writing
2. Professional Executor Services
3. Custodian Services
4. Professional Private Trustee Services:
a) Insurance Trust
b) Private Purpose Trust (includes Investment & Charity)
c) Business Succession Trust
d) Testamentary Trust
e) Offshore Trust
5. Estate Administration
6. Attorney/Agent for Executor
7. Trustee for Unit Trust Schemes, Real Estate Investment Trusts (REITs), Private Retirement Schemes (PRS), Employee Share Option Scheme (ESOS), Memorial Parks, provident and retirement funds
8. Stakeholders
Our Wide Range Of Services