We are a Senior Franchisee of Rockwills and As-Salihin.
Feel Free to Contact Us for Free Consultation
What is Trust Administration ?
Trust administration involves overseeing the assets held within a trust. A trust is a form of legal property ownership in which an ownership interest in real or personal property is split. Trusts are commonly created as an estate planning tool, and the trust administrator then oversees the distribution of assets within the trust according to the wishes of its creator.
A trust administrator must treat all beneficiaries equally and fairly. Even if trust instructions require special treatment for one beneficiary, laws still require that the trust administrator protect the interests of all beneficiaries.
What is the Job scope of Trust Administration ?
When a trust is created, in addition to naming the beneficiary or the person who is entitled to use the trust assets, a trustee must also be named. That trustee is responsible for trust administration. This means he is responsible for protecting the assets in the trust and ensuring they are used according to the wishes of the individual who established the trust.
The duties involved in trust administration vary depending on the nature of the trust created. It is common, for example, for a person to create atrust in which money is left to a child and then distributed to that child to pay educational expenses or when the child reaches a certain milestone. In such a situation, the trust administration duties involve ensuring that the assets are protected until the child reaches maturity and/or ensuring the money in the trust is used only for qualified educational expenses.
The trustee has a fiduciary duty when performing the trust administration. This means he owes the highest obligation to protect the assets in the trust and the interests of the beneficiaries. He cannot divert assets from the trust into his own name, put the assets at risk in any way or otherwise behave in such a manner that interferes with the purpose of the trust as determined by the trust’s creator.
What are the Fees on Trust Administration ?
|Movable Estate||Trust Administration Fee|
|First RM 1 Million||0.75% or min RM 2000 per annum|
|Next RM 9 Million||0.5% per annum|
|Remaining Value exceeding RM 10 Million||0.25% per annum|
|Immovable Estate||Trust Administration Fee|
|Income Bearing||1% or max RM 6000 per title|
|Non-Income Bearing||RM 2000 per title|