In estate planning, ensuring the financial security of minor children is paramount. For many parents, this raises the question: ‘Should they rely on a simple will or set up a testamentary trust?’. Let’s delve into this question through the case study of Mr. Lim and Mrs. Lim and examine how Malaysian law supports the use of testamentary trusts for protecting minor beneficiaries.
Mr. Lim and Mrs. Lim, a married couple, have two young children, aged 7 and 10. They express their intention of ensuring their children’s financial future is secure if something were to happen to them.
In a simple will,
Mr. Lim and Mrs. Lim can name their children as beneficiaries. Under Malaysian law, if beneficiaries are minors, the assets intended for them must be held on trust by at least two executors until they reach the age of majority, which is 18 years old. This arrangement may lack of flexibility to address the children’s varying needs over time, such as monthly maintenance, education expenses and medical expenses. It does not offer the flexibility needed to manage the funds effectively for the children’s upbringing. The rigid structure might not adequately cover the diverse and evolving needs of growing children.
By opting for a testamentary trust,
Mr. Lim and Mrs. Lim can appoint a trustee to manage and distribute the assets according to their specific instructions. This Trustee can be a trusted family member, friend, or a professional trustee service such as Amanah Raya, the Public Trustee of Malaysia. Kindly refer to our article “Why should I appoint a Trustee Company as my Trustee?”. The trust can outline specific conditions for disbursements, such as:
- Covering educational expenses at various stages.
- Paying for medical and healthcare needs.
- Providing funds for general living expenses.
- Releasing the remaining funds when the children reach a more mature age, such as 25 or 30, depending on Mr. Lim & Mrs. Lim’s specific instruction.
This approach ensures that the children’s needs are met over time without overwhelming them with a large sum of money at once.
Benefits of setting up a testamentary trust for your minor children:
- Control and Flexibility: A testamentary trust allows Mr. Lim and Mrs. Lim to specify how and when their assets should be used, ensuring that their children’s needs are met appropriately at different stages of their lives.
- Professional Management: By appointing a professional trustee such as Amanah Raya, Mr. Lim and Mrs. Lim can ensure their assets are managed by experts, reducing the risk of mismanagement.
- Legal Protection: The trust structure provides legal protection, minimizing the risk of family disputes over the management and distribution of the assets.
For parents like Mr. Lim and Mrs. Lim, a testamentary trust offers a robust solution for protecting the financial future of minor children. By providing greater control, flexibility and professional management, a testamentary trust ensures that the assets are used in the best interests of the children, aligned with the parents’ wishes.
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如何通过遗嘱信托更好地保障孩子的未来？
在资产规划中， 确保未成年孩子在未来有稳定的经济能力是其中一个重要的环节。很多父母会有这类型的问题：我们应该有一份简单的遗嘱，还是需要设立遗嘱信托？通过林先生和林太太的案例，我们来探讨这个问题，也来了解马来西亚的法律如果支持使用遗嘱信托来保护未成年受益人。
林先生和林太太是一对已婚夫妻，有两个年幼的孩子，分别是7岁和10岁。他们希望在如果他们不幸遇到意外时，孩子们的财务可以得到保障。
在遗嘱中，
林先生和林太太可以把他们的孩子归为受益人。但是根据马来西亚的法律， 如果受益人是未成年人，资产必须由至少两位执行人代为管理，直到他们年满18岁。然而，这样的安排可能缺乏灵活性，无法满足孩子们随着时间推移而变化的需求，比如每月的生活费，教育费用和Medical费用。这样的结构并不够灵活，可能没办法有效的满足孩子们的成长需求。
通过设立遗嘱信托，
林先生和林太太可以委任一名受托人来按照他们的具体指示来管理和分配资产。这个受托人可以是值得信赖的家庭成员，朋友或者是专业的公共信托公司，例如Amanah Raya。可以看回我们之前的文章 “为什么我应该选择信托公司作为我的受托人(Trustee) ？”。 这样的信托可以让林先生和林太太提前规定好具体的指示，例如：
- 各个阶段的教育费用
- 支付Medical费用
- 提供日常生活费
- 当孩子们达到更成熟的年龄（比如25或30岁）时，把剩余资金给回孩子们
这样的方式可以确保了孩子们的需求能够随着时间的推移而得到满足，而不会一次性给他们一大笔钱，导致他们难以管理。
设立遗嘱信托对未成年子女的好处：
- 控制和灵活性：遗嘱信托允许林先生和林太太具体规定如何以及什么时候可以使用他们的资产，确保孩子们在不同的成长阶段都能得到适当的照顾。
- 专业管理：通过委任Amanah Raya这样的专业公共信托公司，林先生和林太太可以确保他们的资产由专家管理，降低管理不善的风险。
- 法律保护：信托可以被法律保护，减少家庭成员之间因为管理和分配资产而产生争议的风险。
对于林先生和林太太这样的父母来说，遗嘱信托提供了一个强而有力的方法来保护未成年子女的财务未来。
