Family Trust Planning
Family Trust Planning
Own Family Trust Planning is a entire property planning roadmap to transfer tough-earned wealth to the right person at the right time, for the proper motive and without loss of cost. it isn’t always approximately benefitting the next generation(s) in mere dollars and cents, but most importantly approximately gifting them the awareness and sufficient, but no longer immoderate, sources that may cause them to a hit in life inside the much greater aggressive future. this roadmap additionally facilitates to maintain and manipulate wealth in the next generation(s) as well as to make investments and grow wealth in line with your wish.
Through family trust planning, ordinary people can ensure their next generation continue to live inside the chosen life-style and get hold of sufficient schooling to turn out to be a success in life, inside the event of their untimely departure.
Through Family Trust Planning, rich households’ wealth can last beyond 3 generations, as an instance the households at the back of the Lee Kum Kee brand and Ford Motor, whose wealth had stretched beyond 3 generations.
The 3 Core Pillars of Family Trust Planning
Some information we ought to recognise about Wealth Transfer in malaysia
What Family Trust Planning can do?
- Ensure wealth is passed on to beneficiaries without ‘shrinkage’
- Protect assets from creditors’ claims
- Allow someone to continue to have control over the wealth even after his/her passing
- Maintain confidentiality of wealth and details of its distribution
- Ensure the wisdom in wealth creation and wealth preservation to continue in the next generation
- Manage, preserve and grow wealth so that wealth can last beyond 3 generations
- Prevent wealth from falling into the wrong hands (unwanted beneficiaries or non-beneficiaries)
- Ensure smooth wealth transfer even when husband and wife are not around at the same time
- Lay down long-term care planning for special needs eg. for disabled family member, special child or for special person
- Contribute to charitable organisation for philantropic purposes
Some facts about Wealth Transfer
Most of us may have heard a person say “my grandfather was very rich”, at one time or another. and records have additionally shown that 70% of rich family lose their wealth at the second generation, and 90% at the third. So the old Chinese announcing that ‘wealth does not pass 3 generations’ is indeed true for many families.
Without proper making plans and assets transfer methodology, one’s difficult-earned wealth, irrespective of its size, can ‘shrink’ or may be exhausted at the immediate next generation or even before it can be passed on.
Some of the common factors that contribute to shrinkage of wealth:
- No Will
- Heavy estate administration cost (legal fees, court fee, probate fee, etc.). The cost can get higher if the Will is being contested, as Will can be easily challenged by anyone including creditors
- Settlement of liabilities: mortgages, hire purchase loans, personal loans, business loans etc.
- Settlement of outstanding/short-paid income taxes
- Mismanagement of estate by the appointed Executor
- Mismanagement of inheritance by Beneficiaries
- Mismanagement of inheritance by Trustee, when Beneficiaries are still minor