Trust Services
What is a Insurance Trust?
An insurance trust is a specialized legal entity designed to hold life insurance policies in Malaysia. This type of trust is created to ensure that the proceeds from life insurance policies are managed and distributed according to the policyholder’s specific wishes, offering both financial control and protection.
Key Feature:
- Ownership Transfer: The policyholder transfers ownership of their life insurance policy to the trust.
- Trustee Management: The trustee manages the policy and the proceeds, ensuring they are used as specified.
- Beneficiary Designation: The trust document outlines how and when the beneficiaries will receive the insurance proceeds.
Benefits of a Insurance Trust
Controlled Distribution
The policyholder can set specific terms for how the proceeds are to be distributed, ensuring that the funds are used in a manner that aligns with their wishes.
Creditor Protection
The trust provides protection against creditors, ensuring that the insurance proceeds are safeguarded for the beneficiaries.
When to Consider a Insurance Trust:
Beneficiary Protection
Suitable for those who want to ensure that the insurance proceeds are managed responsibly for the benefit of their heirs.
Complex family situations
Useful for families with blended or complex dynamics where clear, controlled distribution of assets is necessary.
Steps to Establish a Insurance Trust:
Consultation
Discuss your goals and needs with our experienced trust lawyers.
Trust Creation
Set up the trust and transfer the ownership of the life insurance policy to the trust.
Policy Management
The trustee manages the policy and follows the distribution instructions as outlined in the trust document.
Review and Update
Periodically review the trust to ensure it remains aligned with your goals and any changes in the law.
Common Questions:
Legal Considerations:
Life Insurance Management
Secure Your Family’s Future with an Insurance Trust
At CNB Amanah, we help you take full control of your life insurance policy by ensuring the proceeds are managed and distributed according to your specific wishes. With our expert trust advisors, you can protect your beneficiaries from unnecessary taxes and creditors while ensuring your legacy is secured. Contact us today for a personalized consultation and discover how an insurance trust can give you peace of mind and long-term financial protection for your loved ones.
Other Trust Services
Insurance Trust
Hybrid Trust
Private Trust
Secure Trust
Saving Trust
Corporate Trust
