Labuan's Strong 'Foundations' Built on 'Trusts'

Author:Labuan IBFC Inc.
Profession:Labuan IBFC Inc

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Bill and Melinda have one. Bill and Hilary have one too. Warren thinks they are wonderful. The Rockefellers and Du Ponts have had 'em for generations. Bob uses his for Africa. Even the Blessed St. Tony swears by his. As tools for wealth management and succession planning, trusts and foundations have, in one form or another, been around for many, many years.

And now you can have one too. Safe, cost effective and close to home. Once regarded as only available to, and suitable for the extremely wealthy, Trust and Foundation structures are now regarded as tools for sensible, long term financial planning for any family having reasonable assets and businesses of substance

The very concept of a Trust where, literally, a family gives its wealth to another company or individual to own, keep and manage on their behalf came into existence many centuries ago and has been refined down the years into a highly sophisticated mechanism for the management of wealth and the minimisation of the taxes inevitably associated with it.

The Foundation, with its implication of charity and benevolence is, in essence just the same as the Trust but operates more effectively in a Civil law environment, (Trusts, simplistically, operate in Common law jurisdictions), but in either case, although there may be some level of philanthropy attached. The idiom "charity begins at home" applies and both these instruments are most often used for the family's generational benefit. 

Unknown thus far to many, here in Malaysia, there is a wealth management centre of excellence which has been developing but has now blossomed. The development of Trust structures in Labuan has been going on for some time but with the passage of the Labuan Financial Services and Securities Act 2010 (LFSSA), the Island took up its (rightful) place at the forefront of international Wealth Management planning.

There has already been very considerable interest internationally in the new legislation as Family Offices, Fund managers and Private Banks seek safe, secure and reputable domiciles for their own, and their clients' funds in the light of the recent international financial turmoil.

The various road shows and events undertaken by Labuan International Business and Financial Centre through its sales and marketing arm, Labuan IBFC Inc. Sdn. Bhd. have been extremely well received. New or redomiciled Trusts and Foundations have been, or are arriving into Labuan from domiciles...

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