Wills and Trusts
Contact Details
Richtec Consultancy
Phone: 019-787 1313
No. 11-01, Jalan Mutiara Emas 2A, Taman Mount Austin, 81100 Johor Bahru, Johor
Wills and Trusts
Wills and Trusts are two types of estate planning documents. After you have worked hard for your money and made every effort for your loved ones, planning is important. These two are tools for wealth succession planning, ensuring that the resources and assets go to the people you want.
Will is a written document that specifies who will inherit your property when you die and names a legal officer to carry out your wishes.
Trust is a legal contract under which an individual (or entity, such as a bank or law firm), known as the 'trustee', holds the legal right to land for the benefit of others, known as 'beneficiaries'.
The Importance of Preparing a Will
You need a will because of the following reasons:
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When your family is most insecure, your investments will cause you more problems than they can provide them.
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Your loved ones may be embroiled in a lengthy court dispute with other family members, or they may be interested in a new legal procedure.
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Your beneficiaries, trustees, and guardians will be determined by the constitution.
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Before your loved ones will profit from your money, they must go through a legal process.
The Difference between a Will and a Trust
Wills and trusts vary in that wills take place shortly after you die, while trusts take effect immediately after you establish them. Wills are written documents that specify who will inherit your property when you die and nominate a legal officer to carry out your wishes.
Another distinction between wills and trusts is that a will would go to probate. This assumes that the court supervises the will's administration and assures that the will is correct and that the properties or goods are allocated according to the deceased's wishes. Since trusts go past probate, the court isn't required to monitor the procedure, which can save time and resources.
Parties Involved
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The Trust's Settlor - The person who establishes the Trust.
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The Trustee - The person or company in charge of the Trust's properties.
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The Trust's Beneficiary - The one who earns the Trust's benefits.
Establishing a Trust
To create a trust, the settlor must write trust papers and pass ownership of the chosen property to it. The settlor must also appoint a trustee to oversee trusts for the good of beneficiaries (or multiple beneficiaries).
A living trust remains active for the rest of the settlor's life. The settlor can designate themselves as the trustee of a prerequisite in order to manage the trust's assets. Whether they refer to themselves as the trustee, he may then name a trustee to administer the trust and distribute the applicant's properties if he becomes incapacitated or dies.
A cancellable trust may be changed at any time if the settlor is capable of doing so. It is impossible to alter an irrevocable trust.