- Trust Services
- Business Value Protection Trust
- Executorship & Estate
- Trust for Specific Purpose
Trust is an important tool in the distribution of your wealth and asset protection to guarantee your loved ones are the beneficiaries the way you wish it to be.
Setting up a trust also keeps your assets safe from claimants and that remains in total confidentiality to other unintended parties.
Your main BENEFITS:
- Your assets held on Trust are not frozen upon your demise – your loved ones have immediate cash flow and not subject to a legal process before distribution can be made
- Your assets are not subjected to Probate/Letters of Administration – this gives you and your beneficiaries security and peace of mind.
- You decide the beneficiary of your choice
- You protect your assets from the reach of creditors
- Other flexible and personalised instructions can be included
Drop us an enquiry and check out how we can help on planning your assets and wealth protection today.
Business Value Protection Trust
In every business, operations are usually smooth until one co-owner passes on or wants to exit. When this happens, how can one maintain balance and continuity while exiting at a fair value?
“I need to find an exit for my shares when I am not around.”
A well-constructed plan is essential to protect the value of the business and provide cash for the family in the event there is a major disruption in the business due to a co-owner’s death, disability, retirement or serious major illness or any other event that jeopardizes the continuity of the business.
Ask yourself :-
- If a co-owner dies today, can you work with his family to run the business?
- Will the co-owner’s family members know how to run the business with you?
- Can they work well with you?
- Would your beneficiaries be able to get a fair price if they wanted to sell the shares?
- Do you have the funds to buy out the deceased co-owner’s shares/interests from the family members when there is no pre-agreed price in a written agreement?
- Can the shares/interests you are purchasing be transferred quickly to you?
PROBLEMS WITHOUT BUSINESS PROTECTION PLAN
Often these are:-
- A new partnership is created due to the inheritance of the shares/interest by inexperienced heirs. Chances are this new partnership may fail.
- There is no pre-agreed price for any sale to take place when the heirs decide to sell to the other co-owners. As a result, it may take years to settle a transaction price.
- Some of the unqualified heirs may insist on being directors of the company and be active in running the business. This may lead to serious disruptions and disputes within management.
- It is possible that the co-owners may decide to abandon the business and start their own due to disputes with the heirs.
- Where inexperienced heirs get involved in the business, there tends to be loss of profits and uncertainty about the business future success.
THE SOLUTION – UBIZ: BUSINESS VALUE PROTECTION TRUST
Our UBiz ensures a smooth transition of the business to the other co-owner(s) and the value of your share of the business is protected against an event such as:-
- Ill health
- Disappearance for an agreed period
Our UBiz consists of:-
- A Buy-Sell or Cross Option Agreement: covering the terms of the sale and purchase including the agreed value or formula, events triggering a sale, funding and mode of payment.
- Power of Attorney: authorizing us, Rockwills Trustee, to transfer the shares/interests to the other co-owner(s) upon the occurrence of the agreed events that trigger a sale.
- Trust Deed by the co-owners: instructions to Rockwills Trustee regarding the periodical distribution of the sale proceeds to prevent these being misspent by the beneficiaries.
- Life insurance policy: as the main funding mechanism to purchase the shares/interest of the outgoing co-owner.
ADVANTAGES OF UBIZ
- Guarantees the sale of shares/interest at a full and fair value that was agreed by co-owners.
- Prevents inexperienced and unqualified heirs from being involved in the business or the selling of the deceased’s shares to outsiders.
- Smooth transfer of ownership to the co-owners is ensured by the Trustee.
- By using life insurance, the purchase of the shares/interest becomes very affordable, minimizing the need to borrow or strain family finances for the purchase. More importantly, it ensures that the other co-owner(s) have the necessary funds to pay for the shares/interest.
- Rockwills Trustee acts as the Trustee for UBiz protecting the interests of your beneficiaries and that of the co-owners.
- Shares/interests are easily converted to cash.
Executorship & Estate Administration
Planning for your loved ones is good but if the distribution gets stuck, then it poses more problems to them. Appoint Alston Lau Group to ensure smooth distribution of your estate to your loved ones.
“It is hard to trust anyone to look after my assets when I am not around.”
When you wish to write your Will, the key questions to ask are:
- Who will get what and how best to provide for your beneficiaries?
- Who do you appoint as Executor and is that person qualified to be the executor of your estate?
- Can you trust this person with everything you have and will he/she be always there for your beneficiaries?
Understandably, you may want to appoint someone close to you as the executor. However, selecting an individual to manage your estate may do more harm than good, apart from the risk of loss from misuse or mismanagement. The executor will be required to deal with various tedious and time consuming legal, taxation, accounting and administrative matters beginning with the application for probate, attending court hearings, preparing reports, etc. until the distribution according to the instructions in the Will. The process can get very complicated.
Trust for Specific Purpose
Many people have many different needs. These can be easily solved by setting up a special specific purpose trust to protect their assets and loved ones as listed below.
“I want to provide for my family in their time of need when I am no longer able to”
- You wish to create a fund to take care of a certain person for example, a distant relative who took care of you when you were young.
- You wish to free your family members from the burden of paying your outstanding loans and liabilities e.g housing loans.
- You wish to ensure that upon your demise, the needs of your family are well taken care of while waiting for Probate or Letter of Administration to unfreeze your assets.
- You want to establish a fund for various purposes such as education, medical assistance, maintenance and even for purposes of charity, and also for different categories of beneficiaries for example, family members, special needs children, future generations and relatives.
Create a Private Purpose Trust with us where you can set up a fund which can cater for the above situations for your loved ones.
How a Private Purpose Trust Helps You
- You can create a fund for any Beneficiary which is not limited to family members only.
- It is fast and convenient. The assets in the Private Purpose Trust do not form part of your estate and are not frozen upon your demise. It can be used immediately to settle your liabilities without burdening your loved ones.
- It can even be used to finance the application for Probate or Letter of Administration without requiring your family members to borrow or pay from their own funds.
- You can plan for multiple level of beneficiaries and also for multiple purposes.
You have planned for your children’s future and have set aside money for their education. You are managing well. However, if any untoward incident happens, do you have a back-up plan to ensure their future is protected?
What is Declaration of Trust (UDeclare)?
Our UDeclare is a Declaration of Trust that is simple, flexible and powerful providing for your loved ones and securing their financial well-being. Under UDeclare, a trust is set up by you as trustee with Rockwills Trustee as your back up trustee. This prevents any delay in allowing your beneficiaries to enjoy the trust assets.
In our UDeclare, you need not transfer the assets yet, until any of the following events (as determined by you) occurs:
- Total Permanent Disability (TPD)
- Critical Illness
- Mental Disability
- Resignation as trustee
- Disappearance for a period of time
You may also include other specific events to enable us to act as trustee.
Benefits of UDeclare
- Speedy distribution
UDeclare prevents delay and provides for fast distribution to your beneficiaries in their time of need or it can be accumulated for a specified period.
When you act as the Trustee, you will have full control of the assets placed into the Trust.
During your lifetime, you can be one of the beneficiaries in the trust. So, at any time, you will be able to withdraw your portion in UDeclare when there is a need to do so.
- Cost savings
When you are acting as the trustee, there are no transfer costs involved to Rockwills Trustee so you will be able to save on certain fees such as stamp duty, legal fees and the trustee’s annual fee.
As Rockwills Trustee Bhd is your backup trustee, your instructions in you Trust will continue to be carried out providing for your during illness and disability and to your beneficiaries when you are no longer around.
Your beneficiaries will also benefit from our independent position as we shall act impartially and fairly to all beneficiaries. This safeguards their individual interests in the trust.
- Protection for your beneficiaries
With the appointment of a Protector as a watchdog and advisor to the trustee, there is clear protection of your beneficiaries’ interest.
- Professional & Experienced
By appointing Rockwills Trustee as your substitute trustee, you ensure that your instructions in the trust are carried out by a professional and experienced trustee.
Are you worried that in future costs will go up and burden your loved ones? You can solve this though a special service called UPrepare.
What Is UPrepare?
UPrepare is an Estate Administration Services Package offered by Rockwills Trustee Berhad to reduce the costs of estate administration in the future.
There are many matters to be settled by an executor before distribution is made to the beneficiaries. These include collecting all immovable and movable assets [including bank accounts, vehicles, shares in companies, unit trusts, house etc]; settling the debts of the deceased [including income tax and debts]; and applying for the grant of probate and submission of the relevant documents to the High Court; dealing with various government agencies and financial institutions.
By appointing us as your executor and buy our UPrepare packages, your family members are relieved from all the above inconveniences!
Unique Features of UPrepare:
- Enjoy the lower estate administration rates to hedge against inflation and annual discounts on estate administration rates when we act as your executor.
- Enjoy annual discounts on trust administration rates when you have a trust with us.
- UPrepare and is benefits are transferable to any person during your lifetime for a transfer fee of RM100 only;
- Prevent unnecessary delays to distribute the estate to your loved ones as Rockwills Trustee Berhad is appointed as the executor;
- Professional support from experienced and practical professionals within Rockwills Trustee.
You have bought insurance to protect against loss of income but who can you trust to protect your insurance money? Can your young beneficiaries manage such a large sum of money?
“How will my wife cope for cash when I am gone?”
UProtect (Insurance Trust)
Do you know that trust is an extremely effective Estate Planning tool to protect your assets and to pass wealth to your heirs efficiently whilst maintaining privacy? You can continue to have control on how the insurance proceeds are distributed even when you are no longer around.
As parents, you too would protect your children. For example, you may purchase insurance so that in case something happens to you while they are young, there will at least be cash to provide for their needs. If you have taken insurance, chances are, you may think that you have done enough in providing security to your loved ones by nominating them as your beneficiaries in your insurance policies. Think again.
Are your loved ones completely protected when you nominate them as beneficiaries in your insurance policies? Is that actually enough? You may want to consider:
- If your spouse is the sole beneficiary to your insurance policy, what happens to the insurance proceeds upon your spouse’s passing?
- If your young children are the beneficiaries, who should claim the insurance proceeds for them in the event both you and your spouse are unable to?
- Are your beneficiaries mature enough to handle large sums of money?
- Is there someone competent enough to assist the beneficiaries?
Structure of UProtect
With UProtect, your beneficiaries are completely protected when you execute a trust deed stating your instructions and transfer your insurance policy(s) to us by way of assignment.
As your Trustee, we assure you that your insurance proceeds are:
- Protected and readily available for immediate usage
- As the insurance is not part of your estate, there is no need to wait for the extraction of Grant of Probate or Letters of Administration.
- Used to finance education needs, living and medical expenses of your beneficiaries
- Your loved ones will still enjoy life like how it is now; even when you are no longer around.
- Should there be a claim for disability or major illness, you will be able to receive the insurance proceeds for your living and medical expenses.
- Paid to your loved ones the way you choose
- You decide who shall receive from the Trust as well as how and when they can receive the monies.
- You can also include substitute beneficiaries to replace those who are unable to receive.
- Avoid the limitation placed by the insurance nomination law
- You are no longer restricted by the conditions placed in the insurance nomination laws.
- You can name any person or organisation to be your beneficiaries in the trust.