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Creating a Wealth Preservation Blueprint for your Loved Ones

Private Trustee ServicesRHB Trustees Berhad

(formerly known as OSK Trustees Berhad)

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Private Trustee Services

At RHB Trustees Berhad, we believe in planning ahead…

…by using our Private Trustee Services, you can protect your loved ones and your assets!

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WHAT IS A TRUST?

Private Trustee Services

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What is a Trust?It is where you (“Settlor”) settle assets to the Trustee who is under a legal obligation to hold and manage

assets for the benefit of your beneficiaries for a duration of time.

Trustee

Trust Deed

Beneficiary

Funding of the TrustYou can use any asset that is free from

encumbrances or lien. Commonly used assets include:

• Cash

• Insurance policies

• Unit trust

• Stocks and Shares

• Landed property

Assets transferred during the Settlor’s lifetime to

Trustee holds and manages the trust assets

Enjoys the benefits of the trust

Written instructions on terms of

Trust

Settlor

Private Trustee Services

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1) Distribution according to your instructions• Ensure proceeds are used for the actual intended purpose(s) and

beneficiaries

• You can decide on when and how to distribute

• The trust can be tailor-made to meet various needs and objectives

2) Immediate usage of funds and easy to create• No Probate or Letters of Administration is required

• Fund is not frozen upon demise

• Requires only payment of a small insurance premium to create a large trust fund (for Insurance Trust)

Private Trustee Services – Why Set Up A Trust?

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3) Choice of beneficiaries• Any persons

• Any organizations

• Inheritance (Family Provision) Act 1971 does not apply

4) Creditor proof• For irrevocable trust only

• After 5 years upon creation of trust

• Full protection against creditor during bankruptcy

Private Trustee Services – Why Set Up A Trust?

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5) Applicable to Muslims• Can be used to distribute assets to the beneficiary(ies) of choice

• Exempted from Faraid distribution (for irrevocable trust only)

6) Confidential• Terms of the trust are confidential to ensure privacy

• It is a private document between the Settlor, Trustee and Beneficiary, unlike a Will (which becomes a public document when applying for Probate)

Private Trustee Services – Why Set Up A Trust?

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Our Private Trustee Services

Private Trustee Services

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Insurance TrustInsurance Trust Business SuccessionTrust

Business SuccessionTrust

Investment Investment CharityCharity

Private Purpose Trust

Private Purpose Trust

RHB’s Private Trustee Services

Private Trustee Services

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SettlorSettlor Insurance Policy

Insurance Policy

Absolute AssignmentAbsolute

Assignment

RHB TrusteesRHB Trustees

BeneficiaryBeneficiary

Trust DeedTrust Deed

(Contains the terms of the trust) (Holds and

manages trust fund)

Insurance Trust - Structure

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This Trust allows the Settlor to:

• Distribute insurance proceeds to anyone or organization

• Have multiple levels of beneficiaries

• Determine the percentage the beneficiaries receive

• State any legal conditions for the income to be enjoyed

• Have staggered payments to the beneficiaries

• Consolidate multiple insurance policies into the trust

• Proceeds are exempted from Faraid Distribution

Insurance Trust

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SettlorAny Assetfree from

encumbrancesTrustee

Beneficiary(ies):• Individual• Charitable organization

Trust DeedFulfill the various

objectives of the Trust

• Education expenses

• Lifestyle and maintenance

• Charitable objectives

• Successive generations

• Creditor protection

• Investment

Trust Assets can be investedTrust Assets can be invested

Private Purpose Trust - Structure

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• A multi-purpose and flexible trust that protects your wealth and assists you in your estate, investment, retirement, and education planning

• Multiple type of assets that are free from encumbrances can be settled into the trust

• It can be catered to benefit successive generations

• Trust can be customized to cater for various needs

Private Purpose Trust

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Surviving partners and heirs of deceased partner can’t get along Heirs of deceased partner can’t or are unwilling to contribute to the business Heirs of deceased partner interferes in the management of the business Heirs of deceased partner sells their stake in the business to outside parties Agreement can’t be reached on selling price

What are the potential problems when a partner dies?

Business Succession Trust

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• Guarantees sale of share of partnership at a full and fair value.

• Provides a smooth transfer of partner's interest at death or disability with the implementation of a trust deed

• Ensures that non-liquid stock is converted to liquid income, providing a fund for the benefit of the deceased's family.

The Objectives

Business Succession Trust

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A

B

C

Life InsurancePolicy (on their

own life)

Buy-Sell Agreement

Trust Deed &Power ofAttorney

Absolute Assignment

A

BC Individual Trust Deeds

RHB Trustees

Business Succession Trust - Structure

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It obligates:

Surviving shareholders to buy; and Personal Representative of deceased

shareholder to sell a deceased

shareholder’s stake in the business

BUY-SELL AGREEMENT

Business Succession Trust

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Transfer DeceasedShareholder’s shares

to remaining shareholders

Pays shares consideration to

Deceased shareholder’s

estate

RHB Trustees

Collects proceeds

pays

Survivingshareholders

notifies Insurance Co.

THE TRIGGER EVENT

Business Succession Trust

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Why Choose RHB Trustees?

Private Trustee Services

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Our People – Our team’s ability to combine our legal expertise with knowledge in financial planning

Our Products – We offer a variety of innovative trust products to provide clients with wealth preservation and estate planning services

Our Brand Name – We are an established trust company backed by RHB Banking Group and has been continuously creating awareness of trusts by way of seminars and articles

Our Marketing Channels – We have a strong distribution network with thousands of agents nationwide

RHB Trustees’ Competitive Edge

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Our Wide Range of Services

Private Trustee Services

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1. Will / Wasiyyah Writing

2. Professional Executor Services

3. Custodian Services

4. Professional Private Trustee Services:

a) Insurance Trust

b) Private Purpose Trust (includes Investment & Charity)

c) Business Succession Trust

d) Testamentary Trust

e) Offshore Trust

5. Estate Administration

6. Attorney/Agent for Executor

7. Trustee for Unit Trust Schemes, Real Estate Investment Trusts (REITs), Private Retirement Schemes (PRS), Employee Share Option Scheme (ESOS), Memorial Parks, provident and retirement funds

8. Stakeholders

Our Wide Range Of Services