Updated September 26, 2025 by Samantha

A trust isn’t just for the wealthy. It’s a simple way to protect your assets, skip probate, and ensure your loved ones—especially children—are cared for exactly as you wish.

Trust Planning in Malaysia: Why It’s Not Just for the Wealthy

Many people believe that setting up a trust is only for wealthy families with large estates.
This is a common misconception.

A trust is a legal arrangement involving three parties:

1. Settlor – the person who establishes the trust, states its purpose and duration.

2. Trustee – a licensed company or individual appointed to manage and execute the settlor’s instructions.

3. Beneficiary – the loved one(s) who will receive the benefits of the trust.

Unlike a will, a trust is a private document. It does not need to go through the probate process and remains confidential between the settlor, trustee, and beneficiaries. There is no requirement for public disclosure, unlike a will that must be submitted to the High Court for a Grant of Probate.

Who Should Consider Setting Up a Trust?

In today’s world, more individuals — especially working women who start families later in life — are choosing to establish trusts. Many are financially independent and wish to provide long-term, structured planning for their loved ones, covering education, medical needs, lifestyle, and even personal development.

The trend is clear: those who begin their families in their late 30s will likely see their children become financially independent only when they are in their 50s or 60s.

A Real-Life Example

One of my clients had her first and only daughter at the age of 40, after undergoing multiple IVF treatments. Her daughter is her most precious gift, and she wants to ensure her well-being under all circumstances is well taken off — even if something happens to her unexpectedly.

To address these concerns, I advised her to set up a trust that clearly outlines her wishes and instructions. The trustee will then carry out her plans exactly as written in the document after her passing.

Her trust includes detailed instructions such as:

“I wish my daughter to complete her university degree overseas.”

“I prefer my daughter to receive medical treatment in private hospitals.”

“Ensure my daughter’s essential needs — medical, education, and monthly living expenses (MAE) — are well provided for.”

How to Fund a Trust

To set up a trust, there must be sufficient funds to sustain the child until she becomes financially independent. These funds can come from:

- Property

- Cash savings

- Life insurance proceeds

Among these, the simplest and most practical option is funding the trust through a life insurance policy, where the sum assured matches the estimated financial needs of the child.

Upon the client’s passing, the insurance payout will go directly to the trustee company, which will then disburse the funds to the appointed protector according to the instructions stated in the trust.

This approach ensures that the caretaker does not need to handle a large lump sum of money at once, minimizing the risk of mismanagement or misuse. Each monthly payout is monitored by the trustee, ensuring every expense aligns with the settlor’s written wishes.

As a result, my client feels reassured knowing her plans for her daughter’s future are protected, structured, and professionally managed — even in her absence.

Whether you want to safeguard your family, expand your wealth, or explore new career paths, FTA is here to guide you every step of the way.

FTA Wealth Solutions is a one-stop financial consultancy in Malaysia, offering holistic services from financial planning and nomination to will writing. As an approved HRDF Corp (Human Resource Development Fund) training provider, we also deliver structured financial literacy and professional development programmes. With over 20 years of industry experience and partnerships with leading providers, we help Malaysians protect, grow, and secure their wealth with clarity and confidence.

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5-1-3, Jalan 2/109F,
Danau Business Centre, Taman Danau Desa,
58100 Kuala Lumpur

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