A brief knowledge of some common types of labuan trust
A Brief Knowledge of Some Common Types of Labuan Trust
Well! Before going into the explanation of some of the common types of Labuan trust, it is better to
know something about a Labuan trust which is nothing but a clearly thought driven venture that lets
the business owner to protect his assets if he has in abundance and could practice ways to save his
assets from unauthorized access. So if you want to establish a trust in Labuan then it is not a bad idea
at all as it safeguards your wealth and helps in building a relationship with trustees and beneficiaries.
The owner can maintain good relationship with the trustees and allow them to manage their assets to
who all beneficiaries it has to pass on as per the trust deed. With this information, now we can make
you more aware about it and some common types of the Labuan trust.
Fixed Interest Trust
It is a fixed form of trust that comes into play when the trustee has not that power or discretion over
the distribution of the assets and when the assets are to made to the beneficiaries. It is also possible
to have a combination of fixed and discretionary trusts. Usually here in this trust, the trustee has given
powers to distribute the assets to the beneficiaries for a certain period of time and after which the
capital fund will be transferred in certain fixed proportions.
Accumulation and Maintenance Trust
This type of trust is used when the settlor wants to benefit a certain number of relations. This trust is
often partly discretionary as to maintain the maintenance of the trust up to a certain time like the age
of the beneficiaries or the time till the beneficiaries are getting their education and then a fixed trust
gets applied. When that certain set time comes, then specified share of the beneficiary will be
distributed to him or her else a trust fund will be maintained for the beneficiary.
As the name suggests, this trust is made for a specific purpose rather than getting established for the
beneficiaries. This trust is made for a non charitable purpose and functions for that purpose.
Well! This was just an overview of some of the common types of the Labuan trust that can be formed,
but if you wish to learn more about the types of the Labuan trust and its functioning and other useful
features then search it over and learn more about it.
For more information visit us at http://www.simplyoffshore.com/labuan-trust/
Labuan Head Office
Level 2, Lot 19, Phase 3,
Lazenda Commercial Centre,
87000 Labuan F.T., Malaysia
Phone: +6 087 421 644
Fax: +6 087 421 646