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There are various types of trusts to be established vie, purpose trusts, charitable trusts which includes the unique 'advancement of human rights and fundamental freedom; spendthrift or protective trusts and the Labuan Special Trust. The Trust may be registered with Labuan FSA.
- A settlor of a Labuan trust must be a qualified person or a resident who can retain certain wide powers including revoking, amending or varying the terms of the trust.
- The beneficiaries of a Labuan trust must also be a qualified person or a resident. One of the trustees of a Labuan trust must be a Labuan Trust company but a trustee cannot also be an Enforcer, although a settlor or his representative can be an Enforcer too.
- Where a trust property includes Malaysian property, prior approval must be obtained from the Authority and any income derived from the property is subject to Malaysia Income Tax Act 1967. Non-Malaysian property income shall be subject to Labuan Business Activity Tax Act 1990 (LBATA).
- Duration of a trust - The terms of a Labuan trust may state its existence for a fixed duration or if not stated, it can be for perpetuity. There is also provision under the law for the conversion of a Labuan trusts from a fixed duration to an unlimited period or alter it by limiting or extending the duration.
- Under the Labuan Special Trust, a trust of company shares can be established under which the shares can be retained indefinitely and the management of the company may be carried out by its directors without any powers of intervention by the trustee. This form of trust is ideal for succession or dynastic planning as well as for matrimonial settlements.
- A letter of wishes which the settlor may provide in addition to the Trust Deed is provided for under the Act.