If you own several properties, a will alone might not be enough. It is worth checking before your portfolio grows any further.
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Ask Jason on WhatsAppWhat a will does, and doesn’t do
A will is essential. But it only takes effect after you pass away, and it still goes through probate. For a simple estate, that is fine. With several properties, business interests or more complex holdings, the process can drag on for months, and the court records become public.
How a trust is different
| Will | Trust | |
|---|---|---|
| Takes effect | After death | When it is set up, while you are alive |
| Probate needed for assets in it | Yes | No, the trustee already holds them |
| How beneficiaries receive | Usually outright | On the terms you set, e.g. income first, capital at a certain age |
| Privacy | Probate is a court process | Private |
| Cost | Lower | Higher: set-up, trustee fees, and possibly stamp duty and legal fees to transfer property in |
A trust also gives you more control. Instead of a lump sum, you can decide how and when each beneficiary receives what, which is useful if your children are at very different stages of life.
Things to weigh first
- Transferring a property into a trust is a real transaction, with its own legal and possibly stamp duty costs.
- If the property has a housing loan, the bank has to agree.
- Choose the trustee carefully; a licensed trust company is common.
The two work together
This is not about replacing your will. A common approach is a trust for the major assets and a will for everything else. If your portfolio has grown beyond one simple estate, it is worth a proper conversation about whether a trust fits. Related: Dying without a will · The insurance gap behind a property portfolio · Joint names in Malaysia
Not sure whether a will is enough for you? I can walk you through both sides and point you to the right professional.
General information, not legal or tax advice. Trusts must be set up by qualified professionals. By Jason Lim (REN 84424, IQI Realty Sdn. Bhd. E (1) 1584/6), licensed will writer.