SETTING UP LABUAN FOUNDATION
Mr John currently has these assets together with his wife with 3 children – age 16, 23 and 30. He has done a will in Malaysia, total assets worth approximate USD 15 million. His assets are as follows:
1. Company A in Malaysia under his name which he owns 50%
2. Company B in Hong Kong under his name -35% and wife is 25%
3. Property in London under wife name worth UK PDS 1.2 million
4. 2 properties in Malaysia under his name worth RM5 million
5. 1 property in Merlbourne worth AUD 850,000
6. He intends to invest in some new start ups of approx. USD 5 million
7. He and his wife has cash about USD 1.5 million and RM 650,000.
If nothing being done for his wealth succession plan, their children may face these uncertainties with unprepared answers as follows:
1. Companies shares in Malaysia and Hong Kong – what are the ways to claim the assets with the death certificate?
2. What is the legal proceeding in Malaysia for the will to be recognised and claim by the dependents?
3. How to claim properties in Australia, Malaysia and UK? What is the law of distributions, the procedures and documents required?
4. The bank account will be freezed may jeorpdize the well being and daily expenses of the family!
5. The uncertainty of amount of time required to spend on the right legal and Governmental procedures know how!
6. Unable to estimate cost involved for travelling, legal expenses and appointment of professionals in various countries!
Make a smart move today! Remove complications by setting up a Labuan Private Foundation to protect your wealth and pass them peacefully to children hassle free. Labuan Private Foundation helps you for:
1. Your beneficiaries claim assets without need to go probate, legal proceeding. The officer and/or your appointed executor will go according to your wishes with the Foundation Charter to carry out the distribution accordingly.
2. Foundation allows you or your wife to be one of the beneficiaries or sole beneficiary, this will give you the benefits should either one of you left earlier.
3. Both of you and wife can be the founders of the Foundation allowing both to endow your assets into the Foundation.Under the Labuan Foundation Act only founder owned assets is allowed to endow.
4. Foundation can be easily dissolved once all assets distributed or continue on leaving your legacy for your future generations.
5. If your Foundation purposed for lasting generations, good to erect Family Office structure to govern it well to minimise disputes.
4 Steps to start your wealth planning using Labuan Private Foundation:
A. Determine the approximate cost involve to transfer the followings assets into the Foundation:
1. Transfer of Company A and Company B shares to the Foundation
2. Property in London under wife name worth UK Pd 1.2 million to be transferred into the Foundation with wife also the founder
3. Two (2) properties in Malaysia and 1 property in Merlbourne to be transferred into the Foundation name
4. He and his wife has cash about USD 1.5 million and RM 650,000 – to transfer into Foundation bank account for protection and manage it for better return.
B. Set your dateline to accomplish your mission from start process of setting up the Foundation complete with the above assets transfer
C. Use Foundation as much you can for all your futures investment in real estates, start ups and businesses, precious metals, art piece etc and endowment process is simple.
While the set up of Labuan Foundation is affordable, the transfer cost is usually the main issues, causing most people not willing to get started their wealth succession plan. But one forgets that upon death , the claim of the assets can be so complicated and high cost will also incurred. It may also affect the good relationship between the children turn sour trying to figure out who does what and upfront payments to be made by whom as the claims may takes years to resolve. It is wise to get it straighten out during your lifetime for your peace of mind and all your love ones. It is even wiser to get ready a Private Foundation vehicle before you start investing.