Frequently Asked Questions

Trust

1What is a Trust?

A Trust is a legal arrangement in which the owner of asset(s) (the Settlor) entrusts another person (the Trustee) with those asset(s) for a stipulated time frame for the benefit of the named Beneficiary/ies in the trust deed.

A Trust can be a valuable legal structure for managing, protecting, maintaining, and distributing your money or other financial investments. It can also be devised to take care of you in the event of a devastating illness or other calamity. The legal mechanism by which this is done entails the Settlor transferring his assets, such as shares, money and other property to a Trustee, like UBB Amanah Berhad. The Trustee will then hold the said assets on Trust for the benefit and enjoyment of the Beneficiary(ies). The Trustee may be subject to restrictions set out by the Settlor, such as releasing the cash only for a certain purpose or in stages. The Trustee is also subject to legal limitations and regulations in the exercise of their powers.

2Why a Trust is needed?

A Trust is an excellent way to preserve, accumulate and protect your wealth. A Will cannot protect your assets from your creditors when you die, whereas creating a Trust will. Unlike a Will, a Trust can serve numerous purposes to provide complete estate planning. A Trust can protect and preserve wealth in ways that a Will cannot.

3Can I name anyone as my Beneficiaries?

Yes, anyone can be the Beneficiary(ies) under a Trust, including the Settlor who created the Trust.

4Can I revoke/amend the Trust?

Yes, as the Settlor, you can revoke/amend or otherwise modify the terms of a Trust provided it is a Revocable Trust.

5Does a Trust apply to Muslim and non-Muslim?

Yes, both Muslims and non-Muslims can create a Trust.

6What is the effect of a Trustee’s Bankruptcy?

Whatever property a Trustee holds on Trust is held for the benefit of the Beneficiaries. 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 with the Director General of Insolvency but instead, a new Trustee will be appointed as Trustee to continue with the Trust.

UBB Cash Trust

1What is the “UBB CASH TRUST”?

The UBB CASH TRUST is a Trust created by you wherein a sum of cash is placed in a Trust. The said sum of cash will be made available to your named Beneficiary/ies in the event of an emergency.

2Why should I establish a UBB CASH TRUST today?

It provides swift cash for expenses during emergencies and to tide your family over until any insurance payout, until they have access to the money in your bank accounts or until the Will receives probate. This cash can also be used to pay any legal fees that may be required to access any inheritances and also to meet bereavement-related expenses.

3Can I name anyone as my Beneficiaries?

Yes. You can name several Beneficiaries of your choice.

4Will 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.

5When will one need a Grant of Probate?

When a person dies leaving a Will.

6When will you need Letters of Administration?

When a person dies without a Will, the court will need to appoint someone to manage the estate of the deceased (to unfreeze the bank accounts) and distribute the estate.

7Can I access the cash in my UBB CASH TRUST?

Yes. This is subject to terms and conditions of the Trust.

8This is the best thing I have come across! Is it a complicated process to apply?

No. It is simple and quick to establish the UBB CASH TRUST. You will only need to fill out one application form and our friendly and capable staff will do the rest.

Will Writing

1Why 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 be required to apply for Letters of Administration which may take well over six (6) months due to the legal requirements and procedures to be complied with.

Having a Will, considerably shortens the time required to distribute your estate upon your death and furthermore your estate will be distributed according to your wishes. You can also ensure that the welfare of your children is provided for by appointing a guardian. It is important to remember that you will still retain control over your assets even after writing your Will.

2What 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 your property to, you can always consider giving your property to charities or other benevolent causes or organisations.

3Why should I go with UBB Amanah Berhad?

There are many freelance Will writers and Will-writing companies who can do the job for you. However, not everyone is reputable nor can be relied upon. If you want top-notch professionalism and integrity, come to UBB Amanah Berhad.

When it comes to comprehensive estate planning and business succession planning, it is important to have your Will written by people who have the necessary experience, expertise and support.

Wasiat for Muslims

1As 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.

2Can I trust your Islamic Estate Planner (IEP) to ensure the confidentiality of my Wasiat?

All IEPs must adhere to the company’s code of ethics and are professionally trained not to divulge any of the client’s information to an unauthorized third party. They have a duty of the confidentiality, just like a lawyer and client and doctor and patient.

The only persons who know the contents of 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 that may be taken by you. Moreover, the Wasiat is only valid after your death and you are at liberty to change the terms of your Wasiat or rewrite your Wasiat at any time prior to your death.

3I 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.

Furthermore, over the years your assets may grow and your Wasiat can cover future assets without the need for re-writing it. In addition, if you have minor children, you can also appoint Guardians for their property through a Wasiat.

4Is it possible for me to appoint UBB Amanah Berhad to be the legal guardian of property for my children?

Yes, you can. You can appoint UBB Amanah Berhad to be the legal guardian of the property of the minor but not over the minor personally. Personal guardianship must be appointed in accordance with Islamic law.

5I 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-Muslim parents.

6I 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 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.

7I 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 the position of persons who carry out the wishes of the deceased persons i.e. as Trustees. Such nominees cannot benefit personally from the respective accounts but must divide the proceeds thereof according to Faraid.

8Who amongst my relatives can never be displaced under my inheritance?

Subject to them being Muslims, your parents (how-high-so-ever), your spouse and your children can never be cut off from your inheritance.

9Can I benefit from my non-Muslim relatives’ inheritance if there is no Wasiat?

No.

10I have divorced my spouse. Can that spouse claim an inheritance against my estate in the event of my death?

Your divorced spouse cannot claim any inheritance from your estate because, once divorced, a former spouse is not considered 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 Iddah, she would still be regarded as your legal heir and thus can benefit under your inheritance.

11I 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.

12I am an illegitimate child. Can I benefit under my putative (unmarried) parents’ inheritance?

You can only benefit under your putative mother’s inheritance.

13As I understand it, the Islamic law of inheritance (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 for the distribution of the inheritance for legal Muslim heirs. Wasiat, (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 them an opportunity to continuously receive rewards from Allah after their death for the act of bequeathing part of their estate to some poor non-heirs or charities and other Islamic purposes.

Hibah

1What are the requirements and conditions of Hibah?

A Hibah agreement will not be formed unless the requirements and conditions below are met and fulfilled:

1. The Donor of Hibah (Al-Wahib)

The Donor must be an independent adult of sound mind, having attained puberty and being 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 his/her 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 any encumbrances and must be halal (that which 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 an offer and acceptance
  • There is a connection between the offer and the 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).
2Can 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 by the Beneficiary. Thus, it is not possible to perform Hibah without the knowledge of the Beneficiary.

3Is it possible to revoke 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.

4How 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.

5What will happen to 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.

UBB Insurance Trust

1What is the UBB Insurance Trust?

The 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 insurance policy. Upon the triggering events, such as incapacity, total permanent disability or death, UBB will proceed to claim the insurance monies and then safeguard, manage and distribute it to your named Beneficiaries over the period of time in accordance with your wishes as laid down in the Trust Deed.

2Who can be named as the Trust Beneficiaries?

Any individual including the Settlor himself/herself, as well as, any charity or other organisation.

3Can I revoke/amend the Trust?

You can revoke/amend the Trust as long as the Trust is made revocable in the Trust Deed by the Settlor.

4When will the Insurance Trust administration process be initiated?

Upon the triggering event such as but not limited to incapacity, total permanent disability or death of the Settlor.

5What type of insurance policies are suitable to be assigned to UBB Amanah Berhad?

Commonly, life insurance policies which is Investment-Linked, Critical Illness rider and savings plan are all suitable to be assigned to UBB Amanah Berhad upon setting up the UBB Insurance Trust.

6How many policies can be assigned to the UBB Insurance Trust?

There is no limit to the number of policies that can be assigned.

7What is the minimum sum assured amount which can be accepted by UBB Amanah Berhad in order to set up the UBB Insurance Trust?

There is no minimum sum assured amount to set up the UBB Insurance Trust.

8How many Protectors can be appointed in the UBB Insurance Trust? And who can be appointed as Protectors?

Up to a maximum of 3 Protectors can be appointed. Anyone except the Trustee, can be appointed as the Protectors.

9Under 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 minors as the Beneficiary(ies) in the Trust.

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