Creating a Trust Nomination will allow unit trust investments to be distributed to loved ones without the need of going through the legal process.

As you plan for the proper distribution of your estate (assets) via a Will or Wasiat, concerns over the status of your unit trust investments must have crossed your mind. Rather than allowing your investments to go through a lengthy legal process before it can be transferred to your loved ones, you can create a Trust.

Trust Nomination service is a declaration of Trust by an investor on his/her unit trust investments which will be distributed to the named beneficiaries upon his/her death. It allows the unitholder to appoint himself/herself as the Main Trustee until his/her death. Upon his/her passing, a substitute Trustee will distribute his/her funds according to his/her preference as per stated in the Trust.

A Trust Nomination permits you to name your loved ones as beneficiaries of your unit trust investments. With this, you are ensuring that your loved ones receive these funds fast when you are no longer around. In the event that the beneficiary is still a minor, PB Trustee will hold the trusts until the beneficiary is 18 years old. However, provisions for advance payment with regard to the beneficiary’s livelihood, medical and education expenses can be arranged.

It must be noted that the Trust Nomination is a separate entity when compared to a Will or Wasiat. It is only set up to distribute your unit trust holdings. Trust Nomination can be set up by account of each fund or by entity. If you set up a Trust Nomination on the basis of entity, you can be rest assured that all your accounts – new or old funds – will be covered under the Trust.

Trust Nomination Features:

Revocable:

• Trust Nomination can be created by account or entity.
• Beneficiaries can be changed.
• All types of transactions can be performed (transfer-in or -out, switching).
• Not protected from unitholders’ creditors.

Other Things to Note:

Non-Muslim Unitholder

• The Trust Nomination should not be stated in a Will.
• The investments do not fall under the estate.
• A Will cannot override Trust Nomination.
• The unitholder can nominate anyone as a beneficiary.

Muslim Unitholder

• The Trust Nomination should be mentioned in a Wasiat.
• The Trust Nomination is subject to Islamic laws.
• The unitholder can only nominate next of kin as a beneficiary (subject to faraid law).
• Beneficiary that is nominated will only act as an administrator, whose role is to distribute according to Islamic Inheritance Law (Faraid).

How does one apply for a Trust Nomination?

Public Mutual offers Trust Nomination Service which is provided via PB Trustee Services Berhad (PBTSB). The first five Trust Nomination applications are at no cost for our Mutual Gold members. There will be a small charged to set up a Trust Nomination for the rest. For more information, please contact your servicing unit trust consultant (UTC).

This article is prepared solely for educational and awareness purposes and should not be construed as an offer or a solicitation of an offer to purchase or subscribe to products offered by Public Mutual. No representation or warranty is made by Public Mutual, nor is there acceptance of any responsibility or liability as to the accuracy, completeness or correctness of the information contained herein.