Labuan IBFC Licensed Trust Company
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Labuan Trusts, Foundations & Asset Protection for Wealth Legacy

Trusts, foundations and wills designed to protect your assets, honour your wishes and transfer wealth across generations. Labuan FSA licensed, with structures built for cross-border families.

Licence
Labuan FSA Trust Licence
Structures
Trusts, Foundations & Wills
Planning
Cross-Border & Succession
Approach
Confidentiality by Design

Protecting and passing on what you have built.

Building wealth takes a lifetime. Without the right structure, it can be lost in a generation.

Family businesses change hands unexpectedly. Assets can sit exposed to creditors. Estates pass through probate in ways that do not reflect the owner's wishes, and in the wrong jurisdiction, forced heirship rules can override them entirely.

A Labuan trust or private foundation separates legal ownership from beneficial enjoyment, placing your assets inside a structure that protects them from future claims and puts succession on your terms. Signature Trust, licensed by Labuan FSA, acts as trustee, protector or administrator and takes responsibility for ongoing compliance and administration across jurisdictions.

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Labuan trust, foundation or testamentary structure: the right vehicle for your objectives

Why Signature Trust

Authorised Labuan Trustee

As a Labuan FSA licensed trust company, we are authorised to establish and administer trusts and foundations under the Labuan Trusts Act 1996 and the Labuan Foundations Act 2010.

18+ Years in Wealth Structuring

Our directors are approved Trust Officers with extensive experience in cross-border asset structuring, succession planning and multi-jurisdictional wealth preservation.

Multi-Disciplinary Team

Licensed Secretaries, Accountants and Legal professionals collaborate on every trust and foundation engagement, addressing tax, legal and administrative requirements together.

Confidentiality by Design

Asset protection depends on confidentiality. We operate with strict privacy protocols, ensuring your family wealth arrangements remain protected from unauthorised disclosure.

From initial conversation to ongoing protection

1

Consultation

We begin with a confidential conversation covering your family situation, asset base, jurisdictions involved and longer-term objectives. We ask the right questions so the structure we recommend is built around your actual circumstances, not a generic template.

2

Proposal

Our team prepares a written proposal outlining the recommended structure, the rationale behind each element and how it addresses your specific objectives. We explain options in plain language before any documents are drafted.

3

Onboarding

Once agreed, we prepare trust deeds, foundation charters, wills and associated corporate documents. We work closely with any external legal advisers involved and ensure all documents meet Labuan FSA requirements.

4

Execution

We maintain the structure on an ongoing basis, manage distributions, prepare accounts and ensure all regulatory obligations are met. Annual trustee reports keep all parties informed and the structure compliant.

Questions about asset protection structures

Common questions about trusts, foundations and cross-border wealth structures.

What is the difference between a Labuan Trust and a Labuan Foundation?

A Labuan Trust is a common-law vehicle in which the trustee holds assets on behalf of named beneficiaries under a trust deed. A Labuan private foundation is a separate legal entity governed by a foundation charter under the Labuan Foundations Act 2010. Private foundations are often preferred by clients from civil-law countries who are less familiar with the trust concept, or by those who want a structure with a defined purpose rather than named beneficiaries. Both provide strong asset protection and estate planning capabilities, and the right choice depends on your background, objectives and the jurisdictions involved.

Can a Labuan trust protect assets from creditors?

Assets properly transferred to a Labuan trust are generally no longer part of the settlor's personal estate and are therefore outside the reach of future personal creditors, subject to fraudulent transfer provisions. The Labuan Trusts Act 1996 provides statutory protections for this purpose. We recommend taking independent legal advice on the position in your home jurisdiction, as creditor protection rules vary between countries.

How is a Labuan trust taxed?

A Labuan trust that holds investments passively (non-trading activity) is not subject to Labuan Business Activity Tax. Income from active Labuan business activities (trading) is taxed at 3% on audited net profits, provided economic substance requirements are met. Income from Malaysian domestic sources or non-Labuan activities is subject to standard Malaysian tax treatment. Tax treatment in the settlor's or beneficiaries' home countries depends on the rules of those jurisdictions. We coordinate with qualified tax advisers to ensure full compliance across all relevant jurisdictions.

Do I need a separate will if I have a Labuan trust?

A trust and a will serve different purposes and are often used together. Assets held inside a trust pass according to the trust deed and do not form part of your estate for probate purposes. Assets outside the trust, including personal bank accounts, property held in your own name and other personal assets, are governed by your will. For clients with international assets, we recommend coordinating both documents to ensure there are no gaps or conflicts between jurisdictions.

What is a protector and does my trust need one?

A protector is an individual or entity appointed to oversee the trustee and hold certain reserved powers, such as the right to remove and replace the trustee or consent to major decisions. Whether a protector is appropriate depends on the size and complexity of the trust and the settlor's preference for ongoing oversight. We discuss this option during the structure design phase and can also act as protector where that is more practical.

Are foreign judgments enforceable against a Labuan trust?

The Labuan Trusts Act 1996 provides strong statutory protections against foreign judgments. A foreign judgment will not be recognised or enforced against a Labuan trust if the action is founded on a foreign law that is inconsistent with the Act. This includes judgments based on forced heirship claims, matrimonial claims or creditor claims where the transfer to the trust was not made to defraud creditors. Independent legal advice from a qualified adviser in the relevant jurisdiction is recommended before settling assets into any trust structure.

Is there a public register for Labuan trusts?

No. There is no public register for Labuan trusts. The details of a Labuan trust, including the settlor, beneficiaries, and trust assets, are not publicly disclosed and are held on a confidential basis by the trustee. This is one of the features that makes a Labuan trust particularly suitable for clients who require privacy in their wealth structuring arrangements. The trustee is, however, subject to the regulatory oversight of Labuan FSA and maintains records that may be required by the relevant authorities.

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Let us help you protect what you have built

A confidential conversation costs nothing. Contact our team to discuss your situation and explore the right structure for your objectives.