As the global financial landscape evolves, the influence of the crypto asset market is becoming increasingly significant. Hong Kong, as an international financial hub, is capturing this trend by upgrading its regulatory measures to foster the development of the crypto asset market.
Imagine waking up one day to find your life savings are gone. Or worse, your family unable to access your crypto after you’re gone.
Don’t be the next cautionary tale. Learn how successful investors shield their assets from threats and protect their legacies.
Family offices and offshore trusts saw significant advancements in 2024, shaping how high-net-worth individuals manage their wealth. From innovative legislative reforms to strategic financial incentives, 2024 positioned several countries, including Malaysia, as critical players in this evolving landscape. Below are the top 10 Family office & Offshore trust events ranked by importance (1 to 5), with 5 being the most impactful.
Rating: ⭐⭐⭐⭐⭐ (5/5)
Malaysia introduced a 0% tax rate for family offices in Forest City’s Special Financial Zone (SFZ), aiming to attract global high-net-worth individuals and cement its position as a wealth management hub in Asia.
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Rating: ⭐⭐⭐⭐⭐ (5/5)
The UK announced sweeping changes to offshore trust taxation, starting April 2025, including tighter inheritance tax (IHT) rules, drastically reshaping estate planning for UK residents.
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Rating: ⭐⭐⭐⭐⭐ (5/5)
Hong Kong proposed tax breaks for family offices investing in cryptocurrencies, enhancing its position as a leading offshore financial hub.
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Rating: ⭐⭐⭐⭐ (4/5)
The Cayman Islands removed trust duration limits, allowing indefinite trusts to enhance global succession planning opportunities.
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Rating: ⭐⭐⭐⭐ (4/5)
Singapore introduced stricter anti-money laundering (AML) compliance rules for family offices, requiring annual reporting and adherence to robust due diligence practices.
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Rating: ⭐⭐⭐ (3/5)
The Trusts and Succession (Scotland) Act 2024 introduced private purpose trusts (PPTs), offering new structuring opportunities but raising concerns about misuse.
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Rating: ⭐⭐⭐ (3/5)
The UK abolished its non-dom tax regime, introducing stricter rules for offshore trusts effective April 2025.
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Rating: ⭐⭐⭐ (3/5)
Family offices globally embraced resilience and diversification strategies to navigate market uncertainties.
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Rating: ⭐⭐ (2/5)
DBS Private Bank introduced a service for ultra-wealthy families using the Variable Capital Companies (VCC) framework in Singapore, simplifying asset management.
Rating: ⭐⭐ (2/5)
Updates in Guernsey, Jersey, and other jurisdictions enhanced trust governance but were less groundbreaking compared to other events.
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As 2024 concludes, Malaysia has solidified its position as a global leader in family office development. With groundbreaking initiatives in Forest City and a supportive regulatory environment, the country is set for even greater achievements in 2025. Stay tuned for more updates from FIAM, including the ‘Top 10 Family Office & Offshore Trust Development Forecast for 2025,’ in the ever-evolving world of family offices and offshore trusts!
Discover strategic wealth planning solutions tailored to your family’s needs with our complimentary consultation on trust structuring. We understand that every family has unique financial goals and challenges, requiring personalized approaches to long-term asset protection.
During your consultation, our experts will explore suitable trust structures aligned with your objectives, ensuring a smooth transition of wealth for future generations.
Schedule your free consultation today to gain insights into effective wealth preservation and legacy planning
FIAM’s president and Timeless International Family Office’s GM, Vicky, discusses family offices in Forest City on the ZFounder podcast. This post explores key insights for our English-speaking audience
Family Office in Malaysia: Discover 3 Powerful Reasons Malaysians Must Know Now
The family office sector has grown rapidly, collectively managing around $5.9 trillion in assets in 2023. Especially in the Asia-Pacific region, with a 44% increase between 2017 and 2019, it highlights its appeal among the wealthy. In Malaysia, this is a new industry as we don’t have a regulatory framework in place. The unity government in 2023 is the first to put concrete efforts into concentrating on this globally growing industry. Here are the reasons why we must know about the family office in Malaysia now:
On September 20, 2024, the Malaysian government, under the leadership of Prime Minister Anwar Ibrahim, announced through Finance Minister II, Datuk Seri Amir Hamzah Azizan, a new Family Office incentive scheme within the newly developed Forest City Special Financial Zone. This initiative aims to attract both regional and international family offices by offering substantial tax incentives. The scheme includes a 0% tax rate for Single Family Office Vehicles (SFOV1) for a duration of 20 years under specific conditions related to asset management, local investment, and operational expenditure. This strategy seeks to draw significant foreign and domestic investments and establish Malaysia as a premier destination for global financial services and wealth management.
Key benefits include:
For a detailed guide on the incentive scheme and eligibility criteria, visit the Securities Commission Malaysia’s announcement.
All these developments raise an important question: Is there enough talent to manage all this wealth, both present and incoming, and is the Malaysian market ready to handle it? For now, the answer is no.
However, if you are looking for an international family office, we have good news for you. One of Asia’s top family offices has just set up their office in Malaysia. You can find out more by making an appointment with their consultant now
Eduardo Saverin, a co-founder of Facebook, utilised a family office to manage his assets after relocating to Singapore, which according to the New York Post, saved him approximately $288 million in taxes. This strategic financial management exemplifies the substantial benefits that can be realised through the effective use of family offices, not just in tax savings but also in broader wealth preservation and growth strategies.
Kuok Meng Xiong leads K3 Ventures, an investment firm linked to his family office in Singapore. He is the grandson of Robert Kuok, Malaysia’s richest man. K3 Ventures has made strategic investments in major tech companies like ByteDance (parent of TikTok) and Grab, Southeast Asia’s first decacorn valued over $10 billion. This highlights the innovative role family offices play in tech investments and growth strategies. Malaysia misses out on such opportunities due to the lack of a robust family office sector and dedicated regulatory framework for family office in Malaysia. For more details, refer to the original article on The Ken: The Tech-First Future of SE Asia’s Family Offices.
Another example is Joseph Tsai Co-Founder of Alibaba Group, Tsai’s family office purchased the Brooklyn Nets of the NBA for $3.5 billion in 2019. By 2024, the value of the investment has increased to $3.85 billion. This represents a $350 million increase in just five years, showcasing a successful example of strategic investment management by a family office if you are considering similar strategic financial management, you might find it beneficial to explore how to set up an offshore trust in Malaysia
By 2027, there will be roughly 210,000 ultra-high-net-worth-individuals (at least US$30mil or RM141mil worth) in Asia, up by 39.8% from 2022.
| Name | Net Worth (2023) | Description | Country | Industry | Family Office Name | Major Investments | Philanthropic Activities | Year Established | Education | Awards/Recognitions |
|---|---|---|---|---|---|---|---|---|---|---|
| Sergey Brin | $94.5 billion | Co-Founder of Google | Singapore | Technology | Brin Family Office | Real estate, technology startups | Brin Wojcicki Foundation | 2005 | Stanford University | Marconi Prize, National Medal of Technology |
| Mukesh Ambani | $93.4 billion | Indian billionaire businessman | Singapore | Energy, Retail | Reliance Family Office | Oil, telecommunications | Reliance Foundation | 1981 | Institute of Chemical Technology | Business Leader of the Year |
| Liang Xinjun | $4.2 billion | Chinese billionaire, co-founder of Fosun Group | Singapore | Investment | Fosun Family Office | Healthcare, real estate | Fosun Foundation | 1992 | Fudan University | Top 10 Chinese Entrepreneurs |
| Ray Dalio | $19.1 billion | American hedge fund investor | Singapore | Finance | Dalio Family Office | Hedge funds, real estate | Dalio Foundation | 1975 | Harvard Business School | Philanthropist of the Year |
| Jack Ma | $23.2 billion | Founder of Alibaba Group | Hong Kong | Technology, E-commerce | Lakeside Partners | E-commerce, fintech | Jack Ma Foundation | 1999 | Hangzhou Normal University | Asia’s Heroes of Philanthropy |
| Li Ka-shing | $34.6 billion | Hong Kong business magnate | Hong Kong | Conglomerate | Horizon Ventures | Real estate, technology | Li Ka Shing Foundation | 1950 | None | Grand Bauhinia Medal |
| Joseph Tsai | $8.1 billion | Co-Founder of Alibaba Group | Hong Kong | Technology, Investment | Blue Pool Capital | Sports franchises, real estate | Tsai Foundation | 2012 | Yale University | Business Person of the Year |
| James Dyson | $23.0 billion | Founder of Dyson | Singapore | Technology, Consumer Goods | Weybourne Group | Technology, real estate | James Dyson Foundation | 2013 | Royal College of Art | Order of Merit, Royal Designer for Industry |
Wealthy Individuals Who Set Up Family Offices in Asia
Wealthy Malaysians often park their wealth abroad due to the current talent gap in the country, which affects the growth of the family office in Malaysia industry. Family offices require a unique skill set, blending professional expertise with a personal touch, which is uncommon in other workplaces. KPMG’s report notes that within the family office business in Asia, CEOs earn between SG$158,001 and SG$500,000 (RM1.76 million) per year, excluding bonuses.
FIAM is committed to helping Malaysia fill this talent gap by providing training with the help of international family office experts. Sign up for our newsletter to stay informed about upcoming events related to family office in Malaysia, offshore trust, and inheritance
A family office is a private wealth management advisory firm that serves ultra-high-net-worth investors. Family offices are distinct from traditional wealth management shops in that they offer a total outsourced solution to managing the financial and investment side of an affluent individual or family.
History: The concept began with the Rockefeller family in the late 19th century, who pioneered this approach to consolidate management of the family’s sprawling empire under a single office.
SFO vs. MFO:
Single Family Office (SFO): Manages the wealth and personal affairs of one family. It offers highly personalized services and confidentiality, with strategies tailored to the specific needs of that family.
Multi-Family Office (MFO): Provides similar services but to multiple families. MFOs can offer cost-sharing benefits and access to a wider range of expertise and investment opportunities, making them suitable for families that may not have the resources to run a standalone office.
Both types of family offices provide customized financial care, but the choice between SFO and MFO depends on the family’s size, costs considerations, and desired exclusivity of services.
The three primary options for setting up a structure similar to a family office in Malaysia currently are:
1. Private Limited Company (Sdn Bhd):
– Governed by the Companies Act 2016.
– Offers limited liability protection.
– Can be managed by family members or appointed professionals.
2. Trust Company:
– Operates under the Trust Companies Act 1949.
– Manages properties and investments on behalf of the family.
– Treated as separate entities for tax purposes.
3. Labuan Entities (Offshore Jurisdiction):
– Labuan Trusts: No need for registration if a Labuan trust company acts as the trustee. Offers a 3% tax on audited net profits. Learn More
– Labuan Foundations: Separate legal entities holding assets for beneficiaries, exempt from tax on investment income from non-trading activities. Learn More
– Labuan Protected Cell Companies (PCC): Segregates assets and liabilities into different cells, providing flexibility and cost efficiency in managing diverse investments. Learn More
Malaysia currently lags behind Singapore and Hong Kong in establishing family offices primarily due to the lack of a specialized regulatory framework and dedicated tax incentives. To enhance the attractiveness and functionality of family offices in Malaysia, the government needs to address the following key issues:
| Feature | Singapore | Hong Kong | Malaysia |
|---|---|---|---|
| Legal Entities | Private Limited Company, Trust, VCC | Limited Liability Company, Trust | Private Limited Company (Sdn Bhd), Trust, Labuan Entities |
| Regulatory Environment | MAS, ACRA | Securities and Futures Commission | Companies Commission of Malaysia, Labuan FSA |
| Tax Incentives | Sections 13D, 13O, 13U | Tax concessions for investment profits | No dedicated tax incentives for family offices |
| Market Growth | Rapid expansion of SFOs; robust framework | Target to attract 200 family offices by 2025 | Emerging market; initial government initiatives |
| Preferred Structures | Holding company overseeing an investment fund and a family office entity | SFO emphasized; Family-owned Investment Holding Vehicles | Various options, including traditional and Labuan structures |
| Licensing Requirements | Licensing exemptions for SFOs; others require license | License required for regulated activities | General business registration, no specific license |
| Investment Vehicles | VCC (Variable Capital Company) | Typically structured around legal entities like LLCs | Sdn Bhd, Trust, Labuan trusts, foundations, and PCCs |
| Global Competitiveness | Leading hub in Asia due to legal and tax frameworks | Competing closely with Singapore for leadership | Striving to enhance competitiveness |
We must understand and prepare ourselves for family offices before the new regulatory framework announcement in the budget this October. As the saying goes, the early bird catches the worm, and opportunities always favor those who are well-prepared. The future of family office in Malaysia looks bright, whether you’re a wealthy investor or someone looking to work in this growing industry
Discover strategic wealth planning solutions tailored to your family’s needs with our complimentary consultation on trust structuring. We understand that every family has unique financial goals and challenges, requiring personalized approaches to long-term asset protection.
During your consultation, our experts will explore suitable trust structures aligned with your objectives, ensuring a smooth transition of wealth for future generations.
Schedule your free consultation today to gain insights into effective wealth preservation and legacy planning
Imagine this happening to you: a doctor in Malaysia recently faced a staggering RM8 million in damages due to a medical negligence lawsuit. It’s hard to fathom the stress and financial turmoil that such a case could cause. This situation isn’t just a headline—it’s a wake-up call for all of us. Whether you’re a doctor, business owner, or any professional, the reality is that legal risks can strike unexpectedly, potentially putting everything you’ve worked for at risk. But there’s a way to protect yourself and your family’s future: a family trust.
Let’s look at some examples:
RM8 Million Medical Negligence Case: A Malaysian doctor was hit with an RM8 million lawsuit, exposing his personal assets to significant risk
Liability in a Patient’s Death: Another doctor faced severe financial consequences after being held liable for a patient’s death, putting his personal assets in jeopardy.
In each of these cases, the individuals’ personal wealth could have been safeguarded through the establishment of a family trust, ensuring their financial security and protecting their assets from potential legal fallout.
A family trust is a legal arrangement where your assets are transferred to a trustee, who manages them on behalf of your beneficiaries. This separation of ownership helps protect your wealth from legal claims, creditors, and unforeseen financial challenges, ensuring that your assets are preserved for your family’s future. Learn More about Trust in Malaysia
While family trusts provide strong asset protection, they must be set up correctly to be effective. A poorly structured trust could leave your assets vulnerable to legal claims or creditors. Understanding trust assets, ensuring their independence, and complying with legal boundaries are vital steps in safeguarding your wealth.
What constitutes trust assets?
Trust assets are fundamental to the trust’s structure. They must be legally owned, clearly defined, and properly transferred to the trustee. This ensures that the assets are recognised as trust property and protected under the trust framework.
How is the independence of trust assets ensured?
The independence of trust assets is crucial to protecting them from legal claims or debts. Trust assets must remain distinct from both the settlor’s and the trustee’s personal assets, ensuring they cannot be seized to settle any liabilities.
Separate from the Settlor’s Assets: Establishing a separate trust account is key to distinguishing personal assets from trust assets, ensuring funds are used solely for the trust’s purposes.
Separate from the Trustee’s Assets: Trust assets must also remain distinct from the trustee’s personal assets, protecting them from being used to settle the trustee’s debts.
The independence of trust assets is not just a legal requirement; it is also strictly upheld in judicial practice, forming a solid legal foundation for the trust system.
When might trust assets be subject to legal seizure?
The protection of trust assets is not absolute and must operate within legal boundaries. The trust must be legally valid and comply with all legal requirements. If a trust is established in a way that harms creditors, they may have the right to challenge the trust.
Trust assets could also be subject to seizure if they are used to evade debts, highlighting the importance of transparency and legality in trust operations.
How can HNWIs in Malaysia ensure their family trusts provide robust asset protection?
In a complex legal and economic environment, Malaysian HNWIs must adopt careful strategies to ensure their family trusts remain secure:
Sign Up here to learn more about Trusts in Malaysia
The RM8 million case is a powerful reminder of the financial risks that professionals & Malaysia business owner face. By setting up a family trust, you can protect your assets from unforeseen legal claims, ensuring your wealth is preserved for future generations.
Looking for something more advanced? If you’re interested in more sophisticated options for asset protection, consider exploring offshore trusts and family office services. These provide additional layers of security and strategic wealth management. Learn more about setting up an offshore trust in Malaysia or why you should consider a family office in Malaysia.
Discover strategic wealth planning solutions tailored to your family’s needs with our complimentary consultation on trust structuring. We understand that every family has unique financial goals and challenges, requiring personalized approaches to long-term asset protection.
During your consultation, our experts will explore suitable trust structures aligned with your objectives, ensuring a smooth transition of wealth for future generations.
Schedule your free consultation today to gain insights into effective wealth preservation and legacy planning
Malaysia Trust offering 36% annual returns? In this article, we will explore everything about trust in Malaysia, from the top 10 trust companies in Malaysia to the alternative Trusts options based on a 10-year comparison. We will also cover concerns about high returns, different types of trusts, relevant laws, and how to set one up. By the end, you’ll have a better understanding of trusts and their benefits.
A trust is a legal arrangement where a person (the settlor) transfers assets to someone else (the trustee) to manage for the benefit of others (the beneficiaries). Trusts can be used for estate planning, asset protection, and charitable giving.
We will explore the requirements, costs, and steps involved in setting up a trust in Malaysia.
– At least one trustee is required.
– Trustees can be individuals or corporate entities.
– Trustees must act in the best interests of the beneficiaries.
– Clearly defined individuals or groups who will benefit from the trust.
– Beneficiaries can be family members, charitable organizations, or other entities.
– Proper transfer of assets to the trust.
– Documentation and registration of asset transfers are necessary.
– Adherence to relevant laws and regulations, including the Trustees Act 1949 and other pertinent legislation.
Core Steps for All Trusts
1. Define Purpose and Objectives
2. Choose Trustees
3. Draft Trust Deed
4. Transfer Assets to the Trust
5. Register the Trust (if required)
6. Ongoing Management and Administration
Specific Considerations for Different Trust Types
Each type of trust has unique considerations and additional steps to ensure it meets the specific needs and objectives of the settlor and beneficiaries.
Customization: Tailor the trust deed to meet specific needs of the settlor and beneficiaries.
Succession Planning: Focus on detailed succession planning to ensure smooth transfer of wealth across generations.
Professional fund management.
| Cost Component | Cost Range (MYR) | Description |
|---|---|---|
| Legal Fees | 5,000 – 20,000 | Drafting the trust deed and other legal documentation. Legal consultation and advisory services. |
| Trustee Fees | 10,000 – 50,000 per year | Fees charged by professional trustees or trust companies for managing the trust. May include setup fees and ongoing management fees. |
| Registration and Compliance Costs | 1,000 – 5,000 | Costs associated with registering the trust, if required. Compliance with regulatory requirements and annual reporting. |
| Asset Transfer Costs | 2,000 – 10,000 | Costs related to transferring assets into the trust. May include stamp duty and other transactional expenses. |
| Maintenance and Administration Costs | 5,000 – 20,000 per year | Ongoing costs for maintaining and administering the trust. Accounting, auditing, and tax filing fees. |
Sign Up here to learn more about Trusts in Malaysia
Malaysia recognises several types of trusts, each serving different purposes and offering various benefits. The main types include:
A living trust, or inter vivos trust, is created during the settlor’s lifetime and can be revocable or irrevocable. Key benefits include:
Avoiding Probate: Assets bypass probate, allowing for quicker and private distribution.
Continuity and Management: Ensures asset management if the settlor becomes incapacitated.
Flexibility: Revocable trusts can be amended or revoked as needed.
Privacy: Living trusts are not public records, ensuring confidentiality.
– Created through a will and comes into effect after the settlor’s death.
– Primarily used to manage and distribute assets according to the settlor’s – wishes after death.
– Established for charitable purposes.
– Enjoy certain tax exemptions and benefits.
– Governed by specific regulations to ensure the trust serves public interests.
– Set up to benefit family members.
– Commonly used for wealth preservation and succession planning.
– Investment funds where investors pool their money to purchase units.
– Managed by professional fund managers.
– Popular for collective investment schemes.
Unit Trusts Concerns in Malaysia
Potential Losses: Investors may experience significant losses, as seen in personal accounts.
Long-Term Nature: Unit trusts are often long-term investments, which may not suit all investors.
Understanding Mechanisms: It’s crucial to understand how unit trusts make money and their associated risks.
Relates News: The article on KCLau.com tells the story of an investor who lost over RM 20,000 in unit trusts over nine years. It emphasizes understanding cash flows, capital gains, and the long-term nature of unit trusts. The author advises learning from the experience and becoming a more informed investor rather than blaming the consultant.
Read the detailed experience of an investor’s RM 20,000 loss in unit trusts on KCLau.com.
– Established for private purposes, often involving family members or close associates.
– Provides asset protection, privacy, and specific management directives according to the settlor’s wishes.
– Created when a sum of cash is placed in trust.
– Beneficiaries can access funds for emergencies or specific needs.
– Not frozen upon the settlor’s death, ensuring continuous access.
Cash Trust Concerns in Malaysia
Regulatory Oversight: Potential lack of stringent regulatory oversight, leading to concerns about the security and management of funds.
Mismanagement Risks: Risk of mismanagement or misuse of funds if trustees are not properly vetted.
Transparency Issues: Possible lack of transparency in the terms and conditions, making it crucial for investors to thoroughly understand the trust agreement.
Relate News: The Securities Commission (SC) of Malaysia is investigating unlisted companies offering cash trust products due to potential breaches of capital market laws. Concerns include offering shares without a registered prospectus and using deceptive practices. Cash trusts, marketed as low-risk investments, are unregulated by the SC or Bank Negara Malaysia. The SC is also reviewing its regulatory framework to protect investors from potential high-risk schemes promising returns as high as 36% per annum. For more details, you can read the full article here.
Here are the top 10 trust companies in Malaysia, selected from the largest companies listed on the Kuala Lumpur Stock Exchange (KLSE) and global market by market capitalisation:
| Trust Company | Parent Company | Market Cap (RM) |
|---|---|---|
| Maybank Trustee Berhad | Malayan Banking Berhad | 121.6 billion |
| Public Trustee Berhad | Public Bank Berhad | 80.9 billion |
| CIMB Commerce Trustee Berhad | CIMB Group Holdings Berhad | 76.4 billion |
| Hong Leong Trustee Berhad | Hong Leong Bank Berhad | 39.0 billion |
| RHB Trustees Berhad | RHB Bank Berhad | 24.8 billion |
| Alliance Trustee Berhad | Alliance Bank Malaysia Berhad | 6.2 billion |
| AmTrustee Berhad | AMMB Holdings Berhad | 14.6 billion |
| HSBC (Malaysia) Trustee Berhad | HSBC Bank Malaysia | Not specifically listed |
| Standard Chartered Trustee (Malaysia) Berhad | Standard Chartered Malaysia | Not specifically listed |
| Deutsche Trustees Malaysia Berhad | Deutsche Bank Malaysia | Not specifically listed |
After exploring the details of Malaysian trusts, it’s important to consider alternative options like offshore trusts. Offshore trusts are established in jurisdictions outside of the settlor’s home country and offer various benefits such as enhanced asset protection, tax planning, and estate planning advantages. These trusts are typically set up in countries with favourable trust laws and regulations, providing a high degree of privacy and access to a wide range of investment opportunities. Common jurisdictions for offshore trusts include the Cayman Islands, British Virgin Islands, and Channel Islands.
| Feature | Malaysian Trusts | Offshore Trusts |
|---|---|---|
| Asset Protection |
|
|
| Privacy | Moderate privacy, subject to Malaysian regulations. | Enhanced privacy with greater confidentiality and protection from public scrutiny. |
| Tax Efficiency | In Malaysia, trusts are taxed under the Income Tax Act 1967. Trustees pay taxes on income from trust assets, and beneficiaries may be taxed on distributions. Proper structuring can optimise tax benefits for both parties. | Potentially favorable tax conditions, reducing overall tax liability. |
| Accessibility and Convenience | Easier to access and manage locally. | May require dealing with foreign jurisdictions. |
| Risk and Stability | Subject to local economic and political risks. | Established in stable jurisdictions, reducing local risk impact. |
| Professional Expertise | Local providers may have less experience with international assets. | Managed by professionals with expertise in international law, finance, and estate planning. |
Family office is more trending than offshore trust now Discover 3 Powerful Reasons Malaysians Must Know Now
Trusts are powerful tools for estate planning, asset protection, and wealth management in Malaysia. By understanding the different types of trusts, their benefits, and the legal framework, individuals and businesses can make informed decisions to achieve their financial and succession planning goals. While setting up a trust involves careful planning and consideration, the long-term benefits often outweigh the complexities and costs involved. Professional advice and expertise can help navigate the process and ensure the successful establishment and management of a trust.
Discover strategic wealth planning solutions tailored to your family’s needs with our complimentary consultation on trust structuring. We understand that every family has unique financial goals and challenges, requiring personalized approaches to long-term asset protection.
During your consultation, our experts will explore suitable trust structures aligned with your objectives, ensuring a smooth transition of wealth for future generations.
Schedule your free consultation today to gain insights into effective wealth preservation and legacy planning
Ultimate Guide of Estate Planning in Malaysia. 3 Important Types.
In Malaysia, an estimated 80% of Malaysians do not possess valid wills leading to potential family disputes and complications.
Estate planning is particularly important for several reasons:
Conflicts over inheritance frequently arise due to inadequate estate planning in Malaysia, affecting everyone from small families to ultra-rich households. Notable cases include:
Negative Example:
Positive Examples:
Initiative Calls in Estate Planning There have been calls for more initiatives in estate planning to prevent issues such as the freezing of assets and to ensure that dependents can access their inheritance promptly. This includes educational efforts and legislative changes to simplify the estate planning process. This could include a favourable 15% tax rate for family office investments exceeding RM20 million.(thestar)
The purpose of this blog post is to help you understand the differences and benefits of each estate planning tool by comparing wills, trusts, and family offices, providing clarity on each option’s advantages and disadvantages. As you can see, the absence of proper estate planning can lead to significant conflicts and complications. Therefore, it is essential to consider tools like private trusts and offshore trusts, in addition to wills and family offices, to ensure your assets are protected and your wishes are honored.
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Now that you understand the advantages and disadvantages of each type of estate planning in Malaysia, we’ve created a comparison to help you choose the right option based on fees, net-worth requirements, and the expert support provided by each service.
| Service | Team Members | Number of Professionals | Typical Fees (MYR) | Who Normally Needs It |
|---|---|---|---|---|
| Will and Estate Planning Firm | Will Drafting Expert, Legal Advisor, Estate Planner, Tax Advisor, Financial Planner | 4-5 | RM500 – 50,000 one-time fee | Individuals with straightforward to complex estates; high net worth individuals (RM 1 million and above); those needing detailed asset protection strategies and guardianship appointments |
| Private Trust | Trustee, Trust Administrator, Legal Advisor, Financial Advisor, Tax Advisor | 5 | RM10,000 – 50,000 per year | High net worth individuals (RM 5 million and above); families wanting to avoid probate; those needing long-term asset management and protection |
| Offshore Trust | Trustee, Trust Administrator, Legal Advisor, Financial Advisor, Tax Advisor, Compliance Officer, Asset Protection Specialist | 7 | RM20,000 – 100,000 per year | Individuals with offshore property or investments; those seeking tax benefits and asset protection in multiple jurisdictions; ultra-high net worth individuals (RM 10 million and above) |
| Family Office | CEO/Director, CFO, Investment Manager, Legal Counsel, Tax Advisor, Philanthropy Advisor, Family Governance Advisor, Administrative Staff, Personal Assistants, Estate Manager | 10+ | RM100,000 – 500,000 per year | Ultra-high net worth families (RM 50 million and above); those requiring comprehensive wealth management, lifestyle management, and legacy planning |
Taking the first step in estate planning is crucial to ensuring your assets are protected and your wishes are honored. Don’t wait until it’s too late—start planning today to avoid future complications and conflicts.
FIAM, in collaboration with Timeless Family Office, is offering a complimentary 30-minute consultation to help you get started. For further assistance or to schedule your consultation, click the button below or fill out the form below
Discover strategic wealth planning solutions tailored to your family’s needs with our complimentary consultation on trust structuring. We understand that every family has unique financial goals and challenges, requiring personalized approaches to long-term asset protection.
During your consultation, our experts will explore suitable trust structures aligned with your objectives, ensuring a smooth transition of wealth for future generations.
Schedule your free consultation today to gain insights into effective wealth preservation and legacy planning
How To Set Up an Offshore Trust in Malaysia
In recent times, amid fluctuations in the Malaysian Ringgit (MYR) and shifts in the global financial landscape, offshore trust have emerged as a compelling option for Malaysian investors seeking to diversify their wealth and safeguard assets. The MYR has experienced significant depreciation, potentially causing assets denominated in MYR to drop by as much as 45% in the last 10 years.
| Year | Exchange Rate (Average: 1 USD to MYR) | Percentage Change |
|---|---|---|
| 2014 | 3.27 MYR | – |
| Present | 4.72 MYR | 44.35% |
Notable personalities in Malaysia have also embraced offshore trusts for their potential benefits. This comprehensive guide explores the process of establishing an offshore trust in Malaysia, considering the MYR currency drop, and highlights how influential individuals in Malaysia have utilized offshore trusts to optimize tax efficiency and asset protection.
| Name | Position/Association | Involvement in Pandora Papers |
|---|---|---|
| Daim Zainuddin | Former Finance Minister | Linked to multiple companies and trusts in the BVI, jointly holding assets worth at least £25 million (RM141 million). Sons, daughter, third wife, and business associates named as owners of offshore companies. |
| Zafrul Aziz | Finance Minister | Named director of Capital Investment Bank (Labuan) Limited, a boutique bank incorporated in Labuan, although claims to have relinquished position eleven years ago. Seeks legal counsel regarding allegations, asserting the ability of individuals to open accounts with licensed banks. |
| Ahmad Zahid Hamidi | UMNO President | Named director of BVI firm Breedon Limited in 1996, with company subsequently dormant for several years. Denies tax evasion attempts, citing investments in a “prominent country.” |
| Yamani Hafez Musa | Deputy Finance Minister | Former director of Great Ocean Consultants in the BVI alongside siblings. Father, former Sabah chief minister, took over as sole director in 2015. Company sold in 2016. |
| G Gnanalingam | Cargo Company Owner | Owns BVI firm Paisley Marketing Limited, dissolved after being gifted to daughter. Ranked No. 13 on Forbes “Malaysia’s 50 Richest 2021” list with a net worth of US$1.8 billion. |
| William Leong | Former Party Treasurer | Administrator of Collister Holdings Ltd in Jersey, managing income during tenure as executive vice president of Philippine National Steel Mill. Linked to BVI firm Maxcorp (Asia) Overseas Ltd. |
| Mahmud Abu Bekir | Son of Sarawak Governor | Named in Pandora Papers through directorship of family business, BVI company Rondinmass Incorporated, holding commercial properties in Seattle and Washington worth US$35 million. |
| Tiong Hiew King | Timber Company Founder | Listed as owner of IB Holdings Limited, a Cook Islands company involved in investment and timber products trading. |
| Larry Low Hock Ping | Parent of Jho Low | Linked to BVI companies Coswell Corporation and Strategic Equities Limited, with combined shares worth US$7 million. |
| Lim Kok Thay | Genting Group Chairman | Linked to BVI company Azure Supreme Limited, though the nature of its business remains undisclosed. |
Source: Coconuts (2021-10-06)
Before delving into the process, it’s essential to grasp the fundamentals of offshore trusts. An offshore trust is a legal entity established in a jurisdiction outside of Malaysia, typically in jurisdictions renowned for their favorable regulatory frameworks and tax benefits. Such trusts serve various purposes, including wealth preservation, succession planning, and confidentiality.
Selecting the appropriate jurisdiction for your offshore trust is paramount. Factors to consider include the jurisdiction’s legal system, political stability, regulatory environment, and tax laws.
Major offshore destination in the world in 2022.
Source: Statista
In 2022, Switzerland emerged as the leading offshore destination for private wealth globally, with Hong Kong and Singapore following closely behind. During that period, offshore assets in Switzerland reached approximately 2.4 trillion U.S. dollars. Timeless International Family Office maintains offices or professionals in all major leading offshore destinations including Switzerland, Singapore, Hong Kong, Shenzhen, Taipei, Kuala Lumpur, Dubai, London, Vienna, Geneva, the British Virgin Islands, the Cayman Islands, and the Marshall Islands.
Given the complexity of establishing an offshore trust, engaging professional services is highly advisable. Seek assistance from reputable law firms, trust companies, or financial advisors specializing in offshore structuring. These professionals can provide expert guidance on trust formation, compliance requirements, and ongoing administration. It’s important to note that there are limited offshore trust service providers in Malaysia.
Timeless International Family Office is one of the recent entrants, having opened their office in Kuala Lumpur on March 23, 2024. Due to the complexity involved, meeting face to face with professionals is often preferred for a thorough discussion and understanding of your needs
Local trusts, such as those offered by Rockwill and UBB Amanah, may differ from offshore trusts in certain aspects. Offshore trusts, in particular, may offer added benefits compared to local trusts. We will delve deeper into this topic in future discussions. Join our newsletter for more update.
Simply fill out the necessary forms and provide the offshore trust agency with the required information. They will then prepare all the necessary documents based on your input. Once everything is set up, you’ll open your offshore trust account system, ensuring all details are accurate. After confirming payment, a quick follow-up call ensures smooth processing. Legal experts from the agency will assist you in drafting the trust deed, detailing terms, objectives, and beneficiaries. As a bonus, you can also apply for a credit card linked to your offshore trust account. Once all paperwork is signed and submitted, your offshore trust account will be activated effortlessly.
You are done!
Drafting the trust deed independently requires close collaboration with legal experts. You’ll need to invest time and effort in ensuring that the document is comprehensive and tailored to your needs, addressing key considerations such as asset protection provisions and succession planning arrangements.
The selection of trustee(s) and settlor(s) is a critical aspect of trust formation. Trustees play a fiduciary role in managing trust assets and executing the trust’s terms, while settlor(s) establish the trust and may contribute assets. Choose trustees with a solid reputation for professionalism, integrity, and expertise in trust administration.
Once the trust is established, it must be funded with assets. This typically involves transferring assets such as cash, securities, real estate, or other investments into the trust’s name. Take care to comply with all legal and regulatory requirements governing asset transfers, including documentation and reporting obligations.
Maintaining compliance with relevant laws and regulations is essential for the ongoing operation of an offshore trust. Be aware of reporting requirements, tax obligations, and other compliance matters applicable to both the trust and its beneficiaries. Regularly review the trust’s structure and operations to ensure continued compliance with evolving regulatory standards.
Effective management of an offshore trust requires ongoing monitoring and review. Stay abreast of changes in regulatory environments, tax laws, and economic conditions that may impact the trust’s operations or objectives. Periodically assess the trust’s performance, structure, and asset allocation to ensure alignment with your financial goals.
Setting up an offshore trust in Malaysia offers numerous benefits, including asset protection, tax optimization, and enhanced privacy, embodying the principles of Dark Forest Logic. By following these steps and leveraging professional expertise, Malaysian investors can establish a robust offshore trust structure to safeguard their wealth and achieve their financial objectives.
Discover strategic wealth planning solutions tailored to your family’s needs with our complimentary consultation on trust structuring. We understand that every family has unique financial goals and challenges, requiring personalized approaches to long-term asset protection.
During your consultation, our experts will explore suitable trust structures aligned with your objectives, ensuring a smooth transition of wealth for future generations.
Schedule your free consultation today to gain insights into effective wealth preservation and legacy planning
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In Malaysia, Netflix’s “The Three-Body Problem” is one of the most popular TV shows currently. The Dark Forest Theory portrayed in it demonstrates a cautious attitude when facing unknown threats, sharing astonishing similarities with concepts like offshore trusts and global wealth management with tax optimization. This article will delve into the connections between these theories and their importance in wealth management and tax optimization, highlighting the role of offshore trusts and Dark Forest logic
In “The Three-Body Problem,” the Dark Forest Theory describes the cautious behavior of civilizations in the universe, choosing to hide their existence to avoid potential threats from unknown civilizations. Similarly, in real life, individuals and entities in Malaysia may also choose to hide their assets in offshore trusts to protect their privacy and wealth.
Investors in Malaysia can leverage the advantages of offshore trusts to protect and grow their wealth. By establishing offshore trusts, Malaysian investors can enjoy tax benefits and asset protection in other jurisdictions, thereby maximizing financial planning and asset management goals.
In the Dark Forest, civilizations must carefully choose to hide their existence to minimize potential threats. Similarly, in the globalized economic environment, individuals and businesses can also achieve tax optimization goals through structures like offshore trusts, minimizing tax burdens to the fullest extent.
Investors in Malaysia can use offshore trusts in other jurisdictions to achieve tax optimization goals, similar to civilizations in the Dark Forest choosing to hide their existence to evade potential threats. This strategy not only helps protect wealth but also provides greater flexibility and opportunities in the ever-changing economic and tax environments.
Apart from the Dark Forest Theory, we can also learn important lessons about civilization survival and development from “The Three-Body Problem.” Civilizations must carefully manage resources and develop strategies to address potential threats for survival and prosperity, mirroring the concept of global wealth management.
Global wealth management is not just a comprehensive strategy for managing personal and family wealth but also a strategy for survival and prosperity in an unknown universe. Offshore trusts play a crucial role in this strategy, offering advantages such as asset protection, financial planning, and tax optimization, helping individuals and families protect and grow wealth in the dark forest of the universe, coping with changing environments and threats.
Global payment solutions provide beneficiaries with the opportunity to use trust account assets globally, facilitating consumption through configuring beneficiary credit cards. Similar to scenarios depicted in “The Three-Body Problem” series where advanced technology obstructs scientific progress on Earth, challenges posed by foreign exchange controls also highlight this issue. Just as the Trisolarans use technological barriers to impede human scientific progress, foreign exchange controls are used by governments to restrict cross-border currency flows, limiting economic growth and innovation. Both scenarios demonstrate how technological or regulatory barriers hinder progress and development.
When facing uncertain tax environments and financial risks, individuals and entities in Malaysia can still adopt similar strategies by using offshore trusts and global wealth management to protect and grow wealth. Malaysian investors can achieve tax optimization and wealth management goals by utilizing offshore trusts in other jurisdictions.
By deeply understanding the connections between the Dark Forest logic and offshore trust, global wealth management, and tax optimization, individuals and entities in Malaysia can better formulate financial strategies to cope with changing economic and tax environments, achieving financial freedom and long-term prosperity.
Global wealth management, global payment solutions, asset privacy, and tax optimization are just some of the many advantages of offshore trusts. To learn about the top 10 benefits of offshore trust accounts at Timeless International Family Office, please visit this link: https://fiam.my/10-benefits-of-offshore-trust-account/.
Timeless International Family Office
With an international professional team spread across locations like Singapore, Hong Kong, Shenzhen, Taipei, Kuala Lumpur, Dubai, London, Vienna, Geneva, British Virgin Islands, Cayman Islands, and Marshall Islands, we deeply understand the importance of family legacy and are committed to assisting you in creating seamless generational wealth succession.
Through strategic partnerships with industry leaders, Timeless International Family Office has accumulated rich experience and strength, embarking you on an outstanding journey of family legacy, ensuring wealth continuity and achieving generational prosperity.
**This article is for informational purposes only and does not constitute legal or tax advice. Readers considering using offshore trust structures for financial planning or tax optimization should consult professional legal and tax advisors to ensure that actions taken comply with all applicable laws and regulations. The author and this website are not responsible for any actions or decisions made by readers based on the content of this article.
Discover strategic wealth planning solutions tailored to your family’s needs with our complimentary consultation on trust structuring. We understand that every family has unique financial goals and challenges, requiring personalized approaches to long-term asset protection.
During your consultation, our experts will explore suitable trust structures aligned with your objectives, ensuring a smooth transition of wealth for future generations.
Schedule your free consultation today to gain insights into effective wealth preservation and legacy planning
