Labuan Foundation instead of WILL?

  1. For a WILL, it needs EXECUTOR to execute the WILL. COURT ORDER (PROBATE) is required to execute the WILL thus, need to engage legal service to obtain COURT ORDER (PROBATE). The issue is the money in the bank is frozen, not allowed to be used, upon the demise of the person. However, if you use Labuan Private Foundation, your beneficiary no need to go through the hassle of going to court. The beneficiary interest is clearly spell out in the Labuan Private Foundation.
  2. Your assets might not be discovered by your beneficiary and your WILL might not be up-to-date or inclusive. However, for Labuan Private Foundation, whatever assets that endowed into the foundation will be the asset of the foundation thus, will be distributed/managed in accordance with the charter and/or article of the foundation.
  3. Your assets distributed through WILL might be subjected to any form of tax that’s applicable in the jurisdiction where the assets situated. However, if you use Labuan Private Foundation there is no tax in any form if the assets remain in the foundation.
  4. You may at risk of unable to preserve your assets if your beneficiaries of the WILL dispose your assets. However, in the Charter and/or Articles in Labuan Private Foundation, you can clearly spell out your intention in preserving your assets. The Council is responsible for the general supervision of the management of the Labuan Private Foundation, ensuring that the purpose for which the foundation was established is fulfilled in accordance with the charter, articles and the law.
  5. If you are using a WILL, your business affair will be disrupted pending the execution of your WILL which might take some time. It worsen if your WILL is challenged in any courts. However, your business will be well taken care of in accordance with the foundation.
  6. You may at risk of your assets is not distributed according to your WILL due to the unenforceable of certain clauses in the WILL or your WILL is challenged in any courts. However, in the Charter and/or Articles in Labuan Private Foundation, you can clearly spell out your intention in preserving your assets. The Council is responsible for the general supervision of the management of the Labuan Private Foundation, ensuring that the purpose for which the foundation was established is fulfilled in accordance with the charter, articles and the law.

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