ANNUITY TRUST

I want to help you save tax.

As a parent earning significant income from your business or employment, you want to be able to pass it to your family.

 

What is Annuity Trust?

Our Annuity Trust is the solution for you and your family. When you have substantial income and intend to invest in properties to receive a steady stream of income for your family, you would want to pass down such benefits to them in a tax efficient manner.

 

How to set up Annity Trust?

Choosing your beneficiaries

  • In order to maximise the benefits of Annuity Trust, your family members having a lower tax bracket than you would benefit the most.

Placing properties into the Annuity Trust

  • When you purchase properties without a bank loan with the intention of renting it out, such properties are suitable to be purchased in the name of Rockwills Trustee Berhad as the Trustee of your Annuity Trust.

Adding a life insurance policy

  • It will be prudent to assign a life insurance policy into the Annuity Trust for it to be used for paying the maintenance and upkeep of the properties as and when needed.

Distribution Instruction

  • Our Estate Planner will discuss with you on how lumpsum income is to be distributed to your beneficiaries without delay.

Benefits of Annuity Trust

> Lower Income Tax

As you place properties and the rental income into the Annuity Trust, such income will no longer be attributed to you, therefore lowering your income tax bracket.

 

> More for Your Family

As the Annuity Trust passes the rental income to your beneficiaries who are minors or family members having a lower tax bracket than you, they will get to enjoy more from the overall tax savings.

 

> Life Insurance

As the Annuity Trust accepts unencumbered properties with rental income and providing long term income to your family, you may want to consider including a life insurance policy to pay for the maintenance and upkeep of the properties. As a result, the rental income will not be used to pay for it, allowing your family to enjoy the entire rental income.

 

> Trustworthy Protector

You can appoint a trustworthy person to act as the protector in the Annuity Trust in case you have concerns whether your instructions are being carried out or not.

 

> Protection from Creditors

The Annuity Trust is designed to protect the properties and the rental income from your creditors as well as creditors of your beneficiaries.

By appointing Rockwills Trustee as your substitute trustee, you ensure that your instructions in the trust are carried out by a professional and experienced trustee.

 

Before you set up a trust, you need to be aware of anti-money laundering regulations.
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