Frequently Asked Question
What is a Trust?
A Trust is a legal arrangement whereby the owner (the Settlor) entrusts another party (the Trustee) to take care of his asset/s for the benefit of the beneficiaries he has chosen under instructions in the form of a trust deed.
The Trust can be one of the effective legal tools to help you manage, protect, preserve and distribute your wealth or your financial plan. It can also be used to maintain yourself in the event some critical illness struck. It requires the Settlor to give away his assets such as shares, money and property to a trustee such as UBB AMANAH to hold on trust for the benefit and enjoyment of the beneficiary(ies). The Settlor may impose conditions for the Trustee to follow, such as releasing monies only for a certain purpose or in a staggered manner.
Why do I need a Trust?
Trust is an excellent solution for many different kinds of problems regarding wealth accumulation, wealth protection, wealth preservation and wealth distribution. Having a will written is important, however unlike a Will, a Trust can serve many purposes to complete estate planning. For example, a Trust allows wealth protection and preservation which a Will cannot do.
Can I name anyone as my beneficiaries?
Yes, anyone can be the beneficiary(ies) including the Settlor, who creates the Trust.
Can I revoke/amend the Trust?
Yes, as the Settlor, you can revoke/amend it as long as it is a Revocable Trust.
Does a Trust apply to Muslim and non-Muslim?
What is the effect of a Trustee’s Bankruptcy?
Whatever interest or whatever property a Trustee holds on trust does not belong to him but for the benefit of the Beneficiaries because the assets/property are held under trust accounts that are separate from the assets of the Trust Company. Therefore, in the event of a Trustee’s bankruptcy, the Trust property will not be vested in the Director General of Insolvency but instead a new successor Trustee would be appointed as Trustee to continue with the Trust.
What is “UBB CASH TRUST”?
UBB CASH TRUST is a trust established by you where in you place a sum of cash in a trust that can be made available to your named beneficiaries in the event of an emergency.
Why Should I establish a UBB CASH TRUST today?
It provides swift cash for expenses during emergencies and to tide your family over until the insurance payout and access to your money in your bank accounts or will. This cash can also be used to pay legal fees to access any inheritances and bereavement-related expenses.
Can I name anyone as my beneficiaries?
Yes. You can name several beneficiaries of your choice.
Will my UBB CASH TRUST be frozen like my bank accounts in the event of death?
No. Your UBB CASH TRUST cannot and will not be frozen in the event of death. This is the unique feature of the UBB CASH TRUST. It is a sum of cash placed “outside of the system”.
When will one need a Grant of Probate?
When a person dies and has a Will in place.
When will you need Letters of Administration?
When a person dies and does not have a Will and also to unfreeze a bank account and distribution of his estate.
Can I access the cash in my UBB CASH TRUST?
Yes you can, subject to terms and conditions to be fulfilled.
This is the best thing I have come across! Is it a complicated process to apply?
No. To establish the unique UBB CASH TRUST is simple and quick. You will only need to fill out one application form and our capable staff will do the rest.
Why do I need a Will?
Well, you can leave the distribution of your assets to the law but you may not like the way the Distribution Act 1958 determines how your assets are distributed and the lengthy and arduous process.
Without a Will, your family will require an application for the Letter of Administration which takes over six months to arrive due to the additional legal requirements to be complied with.
With a Will, the time to complete distribution is considerably shortened as your family won’t have to search for guarantors or ra reliable administrator. You can also ensure that the welfare of your children are taken care of by appointing a guardian while you still retain control over your assets even after writing your Will.
What if I have no beneficiary to leave my assets to?
Even if you do not have any surviving family members that you would like to give to, you can always consider charitable contribution to organisations for the needy.
Why should I go to UBB Amanah?
There are many freelance will writers and will-writing companies who can do the job for you. However not everyone is reputable and can be relied on for top-notch professionalism and integrity.
When it comes to comprehensive estate planning and business succession planning, it is important to have your will written with the necessary experience, expertise and support which does not just cover the legal aspects.
As a mother, can i appoint a guardian for the property for my children?
In Islam, only the father has the right to appoint a guardian for the property of his children.
Can I trust your Islamic Estate Planner (IEP) to ensure confidentiality of my Wasiat?
All IEPs must adhere to the company’s code of ethics and are professionally trained not to divulge the client’s information to an unauthorized third party, just like a lawyer and client relationship and that of a doctor and patient.
More importantly, Wasiat-writing is the bread and butter of the IEP, thus he/she is not about to jeopardize that. The only persons who know the contents of the your Wasiat will be the IEP and the Legal Syari’ah Advisors of the company. If information is divulged to an unauthorized third party, the company will terminate the contract of the IEP concerned and his name and photo will be advertised to say that he is no longer an IEP, in addition to any possible legal action taken by you. Moreover, the Wasiat is only valid after you pass on, i.e. you can always rewrite your Wasiat.
I do not have much assets now to give away, so why bother about writing a Wasiat?
Although you may not have much to give away now, writing a Wasiat is more about fulfilling an important aspect of Islam as reflected in the sunnah as narrated by Abdullah bin Umar R.A.
Moreover, over the years your assets may grow and our Wasiat can cover future assets without re-writing it if you do not wish to do so. Besides, if you have minor children, you can also appoint Guardians for their property through a Wasiat.
Is it possible for me to appoint UBB Amanah to be the legal guardian of property for my children?
Yes, you can. You can appoint UBB Amanah to be the legal guardian only over the property of the minor but not over him personally. Personal guardianship must be appointed in accordance to Islamic law.
I am a convert to Islam and my parents are still non-muslims. I understand that in Islam, parents have a definite share of inheritance in the event of a person’s death. Can my parents inherit from me upon my death?
Only Muslims may benefit from the inheritance of a Muslim. As your parents are non Muslims, they cannot inherit from you. However, you can will up to 1/3 of your assets to your non Muslims parent.
I was unmarried when I bought an insurance policy where i named my sister as beneficiary. I have since married. Would my sister benefit under the insurance policy upon my death?
In Islam, a deceased’s property inheritable only upon death would have to be distributed in accordance with Faraid. Hence your sister’s position becomes that of a trustee (and not a beneficiary) and she is duty-bound to divide the property to qualified heirs under Faraid.
I have named my spouse as nominee in my EPF form. Can my spouse benefit totally from my EPF account upon my death?
According to a fatwa issued by the Majlis Kebangsaan Hal Ehwal Agama Islam Malaysia, nominees in the Employees Provident Fund, the Post Office Savings Bank and the Co-operative Societies Savings Schemes are in position of persons who carry out the wishes of deceased persons i.e. as trustees. Such nominees cannot benefit personally from the respective accounts but must divide the proceeds thereof according to Faraid.
Who amongst my relatives can never be displaced under my inheritance?
Subject to their being Muslims, your parents (how-high-so-ever), your spouse and your children can never be cut off from your inheritance.
Can I benefit from my non-muslim relatives’ inheritance if there is no Wasiat?
I have divorced my spouse. Can that spouse claim for inheritance against my estate in the event of my death?
Your divorced spouse cannot claim inheritance from your estate because, once divorced, a former spouse is not considered as a legal heir anymore. However, in the case of a divorced wife, if the spouse was divorced and your death occurs during her period of eddah, she would still be regarded as your legal heir and thus can benefit under your inheritance.
I am an adopted child. Can i benefit under my adoptive parents’ inheritance?
No. However, your adoptive parents can will up to 1/3 of their estate or use any other estate planning instruments for your benefit.
I am an illegitimate child. Can i benefit under my putative (unmarried) parents’ inheritance?
You can only benefit under your putative mother’s inheritance.
As I understand it, the Islamic law of inheritance (i.e. faraid) already determines a deceased person’s heirs as well as their respective shares. Why should i waste my time and money to have a Wasiat written?
Faraid provides distribution of inheritance for legal Muslim heirs. Wasiat, i.e. the Islamic Will, allows for the distribution of one-third of a deceased’s estate to needy non-heirs. A testator may have some poor non-heirs or charities in mind. Writing a Wasiat gives an opportunity for him to continuously receive rewards from Allah after death for his act of bequeathing part of his estate to some poor non-heirs or to charities and other Islamic purposes.
What are the requirements & conditions of Hibah?
A Hibah agreement will not be formed unless the requirements and conditions below are met and fulfilled:
- The Donor of Hibah (al-Wahib)
The donor must be an independent adult of sound mind, has attained puberty and of sensible conduct (rushd). The donor must be the legal owner of the asset(s). This gives the donor full authority over the asset(s), enabling him/her to fully ascertain the extent or amount he/she wishes to give as Hibah, and to whomever he/she chooses, which includes a Non-Muslim, subject to the pre-requisite that the Deed of gift does not violate Syariah Law.
2. The Beneficiary of Hibah (AL-Mawhublahu)
A beneficiary of Hibah can be any person whether a Muslim or Non-Muslim, as long as the person is able to inherit the asset by bequest as an adult (mukallaf) or a minor. The beneficiary must be able to accept the asset endowed to the beneficiary and be able to exercise ownership over the asset. In other words once an asset is given by hibah to the beneficiary, ownership and control over the asset is transferred to the beneficiary. If the beneficiary is not an adult or has a disability, a representative (Wali Mal) or trustee may be appointed to accept the asset on its behalf.
3. The Asset(s) Bequeathed as Hibah (Al-Mawhub)
Asset(s) endowed as Hibah must fulfil these requirements:
- The asset may be movable or immovable property free from encumbrances and must be halal (that is permitted or allowed by Syariah Law).
The asset(s) must have value under Syariah Law.
The Donor must have ownership over the asset(s).
The ownership over the asset(s) is transferable.
The asset(s) is in existence at the time of the Hibah.
The asset(s) is not conjoined with other asset(s) of the Donor of which ownership cannot be transferred.
4. Sighah (method to manifest the intention to contract) by Ijab (offer) and Kabul (acceptance).
Sighah refers to a verbal or non-verbal agreement or conduct that signifies the offer and acceptance of the gift of Hibah. It is bound by the following:
There is offer and acceptance
There is connection between the offer and acceptance and similarities between what is offered and what is accepted.
No preconditions exist on the asset(s).
No specific time frame is attributed as a term for the asset(s).
What are The Terms and Conditions of a Donor?
The Donor must be an individual who:
Has legal ownership of the asset(s) to be endowed as Hibah.
Has the capacity to administer the asset(s).
Is 18 years and above, and
Is not a bankrupt or suffering from a terminal ailment (maradh al-maut)
Can Hibah be performed by a Non-Muslim?
What are the terms and conditions of a Beneficiary?
The beneficiary can be a Muslim or Non-Muslim, an adult (mukallaf) or a minor who is capable of owning an asset(s). For a minor, a designated representative, executor (wasi) or guardian will accept and receive the Hibah asset(s) on its behalf.
Can Hibah be undertaken without the knowledge of the beneficiary?
No. One of the conditions of Hibah is that there has to be an agreement between the donor and the beneficiary of the Hibah and acceptance of the Hibah asset(s) by the beneficiary. Thus, it is not possible to perform Hibah without the knowledge of the beneficiary.
Is it possible to revoke an asset(s) bequeathed as Hibah? If it is, under what situation or conditions?
The revocation of Hibah is not permissible unless it involves the endowment of an asset(s) between parents to their children or from grandparents to their grandchildren.
If there is acceptance by both donor and beneficiary to revoke the Hibah, the revocation of Hibah is encouraged. However, the revocation is on the condition that the Hibah asset(s) is still in the ownership of the children or grandchildren. If the asset(s) in question has been sold, donated or bequeathed as Hibah to another beneficiary by the children or grandchildren and has been accepted by the other beneficiary (another individual), the Hibah is rendered irrevocable.
If the asset(s) is held by the trustee for the benefit of the children or the grandchildren, the children or the grandchildren cannot sell, donate or bequeath the asset(s) until the determined time when the asset(s) is transferred to the children or grandchildren’s name.
How much authority does a donor have over the asset(s) bequeathed?
Once the asset(s) is given or endowed as Hibah, the donor will cease to have any authority over the asset(s). However, the donor may determine a condition that would entitle him/her to the benefits of the asset(s) as long as the beneficiary agrees with the condition.
What becomes of the asset(s) should the beneficiary die before the donor?
Should the beneficiary die before the donor, the asset(s) will become part of the estate of the beneficiary and would not revert to the donor except under the conditions as stipulated by Syariah Law.
What is UBB Insurance Trust?
UBB Insurance Trust is a legal arrangement whereby you assign your life insurance policy to UBB Amanah Berhad, who will act as the Trustee of your Trust. Upon the triggering events, such as incapacity, coma or death, UBB will proceed to claim the insurance monies and then safeguard, manage and distribute it to your named trust beneficiaries over a period of time all in accordance to your wishes as laid down in the Trust Deed.
Who can be named as trust beneficiaries?
Any individual including Settlor himself/herself as well as any charity or organisation.
Can I revoke/amend the Trust?
You can revoke/amend it as long as the Trust is made revocable in the Trust Deed by the Settlor.
When will the Insurance Trust administration process be initiated?
Upon the triggering event such as but not limited to incapacity, coma or death of the Settlor.
What type of insurance policies are suitable to be assigned to UBB Amanah Berhad?
Commonly, life insurance policies with Investment-Linked, Critical Illness rider and savings plan are suitable to be assigned to UBB Amanah Berhad upon setting up the UBB Insurance Trust.
How many policies can be assigned to the UBB Insurance Trust?
There is no limit to the number of policies to be assigned.
How much sum assured can only be accepted in the UBB Insurance Trust?
There is no limit to the amount of sum assured.
How many Protectors can be appointed in the UBB Insurance Trust? And who can be appointed as Protectors?
Up to a maximum of 2 Protectors can be appointed. Anyone except the Trustee, can be appointed as the Protectors.
Under what circumstance should Protectors be appointed in the UBB Insurance Trust?
It is advisable to appoint Protector(s) when planning for incapacity as well as when there is an involvement of minor(s) as the beneficiary(ies) in the Trust structure.
UBB AMANAH BERHAD
B-G-09 Galeria Hartamas,
No.21, Jalan 26/70A,
Desa Sri Hartamas, 50480,
B-G-07 Galeria Hartamas,
No.21, Jalan 26/70A,
Desa Sri Hartamas,