Private Trusts

A Trust is a legal arrangement where asset ownership is transferred from the person who set up the Trust (settlor) to another person/corporation (Trustee) for the benefit of one or more people (beneficiaries).

The beneficiary holds an equitable interest in the asset even though the trustee has the legal ownership. A Trust can be created intentionally or by virtue of a statutory Trust. Some Trusts which are intentionally created includes an education Trust, maintenance Trust, charitable Trust and certain insurance Trusts.

A Muslim is able to set up a ‘Hibah' arrangement for the benefit of their treasured ones. It is a gift of your love and affection to your treasured ones without the expectation of any kind of return or consideration. Furthermore, ‘Hibah' is not subject to Islamic Law on inheritance or ‘Faraid'.

We can assist you in setting up a ‘Hibah' which is designed to safeguard the interest of all respective parties concern in the ‘Hibah' arrangement.

‘Hibah' is documented vide a private contractual arrangement whereby a Muslim ("Donor") voluntarily allocates his property to his treasured ones ("Donee") and the ownership of property will be immediately transferred to the Donee upon concluded of the Hibah declaration.

The Donor may arrange the distribution of the property to the donee upon triggering event including reaching certain age, upon demise of the donor and etc.

Protect yourself & your family with a legacy plan designed with your future generations in mind.

What are the benefits?

• Hibah assets can be transferred to intended beneficiaries during a donor’s lifetime.
• Upon triggering events*, seamless and hassle-free distribution of Takaful benefits via Hibah arrangement to the intended beneficiaries.
• Shariah Advisory Council of Central Bank of Malaysia allows Takaful benefits as part of Hibah, which shall be given away upon demise of donor (SAC BNM resolution 165^th Meeting held on 26 Jan 2016).
• The Takaful benefits shall be in the ownership of the intended beneficiaries even though they have not yet taken possession (qabd) of the Hibah
• For non-Muslims, Hibah will not form part of a deceased’s estate and be subjected to debts
• Hibah assets can be smoothly distributed within 7 days down to intended beneficiaries whilst the normal estate distribution process may take longer.

Types of Hibah Takaful Plans available:

• Smart Waris
• Smart Hijrah
• Takaful Smart Plus

*Triggering events refer to Death or Total Permanent Disability (TPD)

Our dedicated team is ready to advise and assist you in ensuring your intentions are met and your legacy preserved for generations.

Wills & Trusts Team

Should you have any queries or require further explanation on Wills and Trusts or related matters, please contact our Retail Trustee Services at the following numbers: