What Is diffrent between Trust or Will ?

A Trust is an estate planning instrument for an Individual to ensure the total protection of asset(s) is preserved for the beneficiaries while in the safe hands of the Trustee.


There are three parties involved in a Trust.

1. The settlor – person who sets up the Trust.

2. The Trustee – the person or a corporation who manage the Trust assets

3. The beneficiary – the person who receives benefits from the Trust

How does a Trust work?

The Trustee receives the assets from the Settlor and is legally obligated to hold and manage the assets for the enjoyment of the beneficiaries during the trust period set by the Settlor. It is commonly known as “Living Trust”



A person appointed by the settlor with the following job scope:

1. Act as a watchdog for the settlor when he passed on

2. Advise the trustee on the needs of beneficiaries

3. Recommend payment to beneficiaries using Letter of Wishes

4. Has the power to remove and replace the Trustee.




The assets commonly used to set up a trust are: cash, insurance policies, unit trust, properties, shares.

The property under Trust do not belong to the Trustee personally. Though the trust property is registered in the Trustee’s name, it is NEVER part of the Trustee’s own properties when he dies. Only the Trust beneficiaries will be entitled to the Trust Fund NOT the Trustee’s own beneficiaries.




1) Distributing Wealth to Avoid Probate

Trust of this nature is useful when you have:

1. Minor children and spouse who is a homemaker or earning not as much as you

2. Special children requiring funds for medical, education and living expenses

3. Have a 2nd Family to provide for

4. Financing children’s tertiary education.





2) Protecting Wealth

Protecting Against Wasteful Beneficiaries

The Protector appointed will ensure there is no wastage of moneys receive under the Trust. Protector can stop disbursement of fund to undeserved beneficiaries.

Against Creditors of Settlor and Beneficiaries

Protector will instructs Trustee to stop the disbursement of fund whenany beneficiary has become a bankrupt.

Protecting Wealth Against the Settlor's Creditors

When a person becomes a bankrupt, usually an investigation by the authorities is done to recover assets transferred up to 5 years prior to bankruptcy. The suspicious transfers will be nullified to recover the assets to pay the creditors.




3) Protecting Wealth Against the Beneficiaries’ Creditors!

This is achieved by creating a Discretionary Trust when any of the beneficiary becomes bankrupt, he will no longer be entitled to the benefit under the Trust.

4) Preserving Wealth for Your Great Grandchildren

Preserving assets for your great grandchildren.

5) To cater funds for various family situations

For example, education and Maintenance fund for grandchildren, nephews etc









Assets held under Trust are not frozen upon demise.
For the distribution of wealth, including periodical payment.
To ensures the wealth is protected against lawsuits as well as creditors.
The preservation of wealth.
Fulfilling various personal objectives, including such as maintenance of dependents and education funds.




1) Distributes the way you want it to

For example, set goals to be achieved (such as a college degree) before your loved ones receive anything from the trust or to be used for their medical expenses. This avoids wastage of the trust fund.

2) You decide who is to receive

Just like a Will, its your choice, no one can challenge it.

3) No fuss and instantly available as it is not part of the estate

No lengthy legal procedure to adhere. Trust Fund is readily available for the beneficiaries’ use because it is in

the Trustee’s name. It complements the Will you wrote.

4) Have a peace of mind

Once the trust is created and the Protector appointed, the well-being of your beneficiaries are taken care of.

5) Get assets protected from creditors - Irrevocable Trust

When assets have been in the trust for more than 5 years.

6) Not easily contested

Disgruntled family members who are not receiving anything from the trust are unable to make claims against the trust because the assets are no longer under your name.

7) Your instructions on distribution in the Trust Deed can prevent your wealth from being squandered

For Free Personal Financial Review ,
Call Mike Saw now at 017-4930232,or email at :mikesaw2006@gmail.com.

Thanks.

Choosing the right life insurance policy to meet your needs

There are numerous life insurance policies available. Here are some basic guidelines that can help you with your decision.
a. The right policy
While there is no universally correct policy, the right policy can be described as one that will
provide you with adequate financial protection and is affordable.

b. Knowing your needs
Life insurance should be bought based on meeting your financial needs. Few people can afford to buy all types of insurances they desire immediately. It is therefore necessary to decide which financial needs are of higher priority. Here are some of the common reasons for buying life
insurance.
To provide income continuity in the event of death or disability
Even in a family with more than one income, the family will suffer a financial setback if one of the income earners dies. In the case of a family with only one breadwinner, the hardship will be severe.
Similarly, if a person becomes totally and permanently disabled, he or she will not be able to continue working. In addition to loss of income, there will be a financial drain caused by the need to accommodate the condition. The family needs to be protected against such misfortune.
Life insurance provides financial protection for your dependents. It gives them cash to tide them over difficult times. When buying life insurance for this purpose, you should look at the financial commitments of your family.
To provide income for the policyholder if he/she becomes critically ill
Should you be diagnosed with a critical illness, such as cancer, kidney failure or stroke, medical expenses will add up to a hefty amount.
Critical Illness Insurance can help with such expenses as a lump sum of cash will be paid to you once you are diagnosed with a critical illness. This money can help you with medical bills and other expenses arising from the critical illness.
To provide savings or investments
Life insurance is not just about sickness and death, it is also a good savings and investment tool.
You may be saving for a car or a condominium. You may want to go on a holiday or for further studies.
Endowment/Investment linked insurance plan will provides you with stable returns and helps you realise your dreams. It is also a good investment vehicle that can help you build a retirement nest egg.
To provide for your children's education
Education, especially tertiary education, has become increasingly expensive. Education insurance is one way to ensure that there are sufficient funds for your children's education.
To convert liabilities into assets
Most people would have taken up a mortgage loan when they purchase a home. It is important to take up mortgage insurance so that your family can continue to live in the home that you have provided for them, even when you are no longer around. The sum assured of the mortgage insurance will pay for the mortgage loan, thus converting your liability into an asset.

c. Affordability
Life insurance should be bought based on your financial needs. Few individuals can afford to buy all types of insurances they desire immediately, so it is vital to decide which financial needs are the most important. Thus, it is important to find the right balance between the amount paid and the amount insured for. You should buy policies which satisfactorily meet your financial needs and which you can afford.
To find out more on the various types of products or to obtain a no-obligation, free Personal Financial Review on your insurance needs, please call for Appointment: 017-4930 232 or visit your nearest website at AIA.COM.MY or email us now at :mikesaw2006@gmail.com

Good Thing to share with Family and Friend

Would you married a widow with three children ?

Are you Insured by AIA or yourself ?

What is your priority ? Saving & Protection

Accident Happen at anytime at anyplace

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