This post is brought to you by Rockwills Trustee.
How important is it to protect your assets? For most people, it is extremely important. Especially for those who have dependants and a large amount of assets.
When you have assets worth a lot of money, it is important to have a will to make sure your assets do not end up in the wrong hands, or that it does not hang in limbo as your family battles it out in court on who gets what.
For example, imagine a situation where you, as a foreigner living in Malaysia under the Malaysia My Second Home program, have assets in terms of shares and a bulk load of money in your bank account. If something were to happen to you, your assets should automatically go to your wife and family. But, without a will, your wife and family will have to wait a long while for proper verification (probate) before they can claim said assets.
This is when a Declaration of Trust, or UDeclare, comes in handy.
What is a UDeclare?
UDeclare is a Declaration of Trust made simple and flexible, yet powerful enough to secure the financial well-being of your family in an event something unfortunate were to happen to you, the trustee (settlor). A declaration of trust is an express trust where you, as the client, will declare specific assets to be held on trust by yourself, as a trustee.
What Can I Use as Assets?
Examples of assets used for UDeclare include residential property, unit trust and mutual fund investments, shares of companies and money in your bank accounts.
How Do I Set Up a Declaration of Trust with Rockwills Trustee?
As a trustee, you will have to set up a deed of trust with a reputable licensed trust company, such as Rockwills Trustee, who will act as your backup trustee. By doing this, you will prevent any delays in the release of your assets to your beneficiaries. With UDeclare, the trustee, that’s you, will not have to transfer any assets unless any of the events listed below (and determined by you) occur;
- Total Permanent Disability (TPD)
- Critical Illness Mental Disability
- Resignation as Trustee
Once you set up a deed of trust with Rockwills Trustee, you will automatically give Rockwills Trustee authorization to take possession of your assets. Rockwills will then manage the trust assets without any delay if any of the events determined by you were to happen (death, comatose etc.). This simply means that if the worst were to happen, your backup trustee, Rockwills, will step in as settlor to manage and distribute your assets to your beneficiaries according to what you have stated in your deed of trust. This will be done swiftly without a long process of probate with the courts, because you have already given Rockwills full authorization to manage your assets.
After setting up a deed of trust, you, the settlor or trustee, will be entitled to 99% of your trust. The remaining beneficiaries stated in your trust will be entitled to 1% each. In the event of your death, your beneficiaries will be entitled to your entire trust in the proportion already determined by you.
Why Is It Important for Me to Have a UDeclare with Rockwills Trustee?
If the settlor (you) were to pass away or end up with a permanent disability, for example, Rockwills will ensure your family, especially if you have young children, children with special needs and other dependants, is provided for financially once you are unable to do so.
What Are the Advantages of Having UDeclare with Rockwills Trustee?
In the event of something unfortunate, such as death or permanent disability of the settlor, the settlor’s assets will not be frozen and need not be subjected to a court order. Because of this, the settlor’s beneficiaries will receive the benefits from the trust swiftly.
As the settlor, you can make changes to the terms of your trust. In fact, you can also choose to revoke your trust anytime. You can also customize the structure of your trust to meet your objectives.
When you appoint Rockwills as your substitute trustee (Rockwills will act as the settlor), you can rest assured that your trust will be managed efficiently and professionally.
As one of the beneficiaries, you, the settlor, can receive an income from your trust. And, in case of an emergency, you can withdraw your portion anytime you want.