Trust Administration FAQ
1. What is the minimum capital for opening a Trust Account?
The minimum capital for opening a Standard Trust Account is RM2,000 while a minimum capital of RM50,000 is required to start an Amanah Safecare account.
2. Can a house I own be turned into a property trust if it is still being financed by a bank loan?
No. Only incumbrance-free properties supported by a property title qualify for trust property conversion. This is to enable the registration of AmanahRaya as Trustee in the property title in due course.
3. Can a beneficiary refuse closure of an existing Trust Account and still place its assets under the care of AmanahRaya for a specific period or until the funds are needed at a later time?
No. The existing Trust Account must be closed and a new account be opened where the beneficiary is the named donor of the new Trust Account. The duration of Trust must be stipulated in the Trust Deed. The Trust shall come to an end at the maturity date as stipulated in the Trust Deed.
4. If funds meant specifically for my child were kept in Trust Account, would my beneficiaries be able to lay claim to those funds upon my death?
No. The funds in the said Trust Account are excluded from the rest of the estate which will be distributed in accordance with Syariah or Faraid law for Muslims or the Distribution Act 1958 for non-Muslims.
Withdrawal / Subsistence
5. Who is authorised to make withdrawals from a Trust Fund on behalf of a minor?
An application for withdrawal on behalf of a minor is only permissible through a guardian appointed by either the court or AmanahRaya or with the approval and common consensus of the child’s family. Applications from sources acting outside these guidelines will not be entertained.
6. How can withdrawals be made from a child’s Trust Fund to support his expenses?
Funds from a Trust may be withdrawn for allowance, education, festive celebrations or any other purposes related to a child’s welfare. An application will require the submission of Appilcation for Maintenance and Other Expenditures Form available at any AmanahRaya counter. Alternatively, a formal request letter may be addressed to the nearest AmanahRaya branch.
7. Can funds from a child’s trust account be used to purchase a family home shared by him?
To avoid the misappropriation of funds, such an application requires management approval and will be vetted to ascertain the specifications of the purchase such as the title on the deed, welfare of the child, and whether the Trust Fund amount covers the price of the property. In addition to the above, other key considerations will need to be made and these vary from case to case.
Account Closure
8. How long will the closure of a Trust Account which has reached maturity take?
Closure will take 14 business days from the date a complete application is submitted to AmanahRaya.