It’s every parent’s nightmare: something unexpected happens, and your children are left without clear financial direction or guardianship.

Yet many parents don’t realise that naming someone in a will isn’t enough—especially when the children are minors.

That’s where a trust comes in. It’s one of the most powerful tools to ensure your children are protected, provided for, and guided financially until they’re truly ready.

👶 The Problem with Leaving Assets Directly to Children

Under Malaysian law, minors (under 18 years old) cannot legally own or manage property. If you leave money or property to your child through a will, here’s what may happen:

• The assets are frozen until a guardian is appointed

• The guardian may not be the person you would have chosen

• The funds could be misused or mismanaged

• Once the child turns 18, they gain full access—ready or not

Imagine your 18-year-old inheriting RM500,000 and spending it in a year. It happens more often than you think.

🛡️ How a Trust Solves This

By placing assets into a trust, you gain control over:

• Who manages the money (your appointed trustee)

• When and how distributions are made

• What the money is used for (e.g., education, medical needs, basic living expenses)

• At what age your children can take full control (e.g., age 25 or in stages)

You can also appoint a protector to oversee the trustee and ensure your children’s needs are met according to your values.

🧠 Real-World Example: A Thoughtful Mother

Ms. Aida, a single mother, set up a trust for her two sons. In it, she:

• Appointed her sister as guardian

• Named a licensed trust company as trustee

• Stated that funds should be used for education, living expenses, and health

• Allowed full access at age 30, with staged payments from age 21

Her sons were able to focus on school, supported by responsible adults—without the pressure or temptation of a lump sum inheritance.

💬 What Should You Include in a Trust for Children?

• Your choice of trustee and guardian

• Clear instructions on when and how to use the funds

• Provisions for education, health, and milestones

• Contingency plans for unexpected events

• Optional Letter of Wishes for personal guidance

📌 Protect Against Outside Claims

Trusts can also protect your child’s inheritance from:

• Divorcing spouses

• Lawsuits or creditors

• Poor decision-making in early adulthood

In short, you’re not just giving your child money—you’re giving them structure, security, and time to grow.

💬 Final Thought

As a parent, your biggest gift isn’t just love—it’s a plan.

A trust ensures your children are supported even when you can’t be there, and that your values live on through every decision made for them.

Coming up next:
“Trusts vs. Insurance Nominations—What’s the Difference?”
We break down two key tools often confused, and how they can work together.