Wealth Planning Tools: Labuan Foundation vs. Trust
🔹 Labuan Foundation
Ideal for individuals who wish to structure and preserve wealth across generations with clarity and control.
Why Set Up a Foundation?
🔐 High level of confidentiality – identities of the founder and beneficiaries are private
⚰️ Continuity – unaffected by the death of the founder
💼 Tax-efficient – 0% tax if used purely for investment holding
🌎 Global reach – beneficiaries can reside anywhere in the world
🌍 Flexible asset scope – can hold foreign assets, including shares, properties, and cash
🔹 Labuan Trust
A flexible and confidential wealth management tool offering both registered and unregistered options.
Why Use a Trust Structure?
🔐 Confidential – trust arrangements remain private
✅ Flexible options – choose between a registered or unregistered trust
🛡️ Professional oversight – appoint a licensed Labuan trust company to act as trustee (safer than relying on an individual)
⚰️ Uninterrupted management – the trust continues regardless of the settlor’s passing
Which Should You Choose?
Choose a Foundation if you prefer a corporate structure with clear governance, asset protection, and long-term legacy planning.
Choose a Trust if you want flexibility, privacy, and simplicity with trusted professionals managing your assets.
