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LAW556 Administration Of Trusts UITM Assignment Answers Malaysia

LAW556 Administration Of Trusts course explores the general principles of trust law in Malaysia with an emphasis on the practical aspects of trust administration. The course covers the various types of trusts, the role of the trustee, and the duties and liabilities of trustees. The course also covers the nature and powers of a protector and discusses issues relating to Winding Up and Vesting Orders. Students will have the opportunity to draft various types of trust instruments and apply their knowledge to practical problems.

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Assignment Activity 1: Discuss the role, duties, and powers of the relevant parties in the administration of trust property and wills.

Malaysia follows the English trust law system and hence the relevant laws are codified in the Trustee Act 1949 (Revised 1974). Under this Act, a trust is defined as an arrangement where a person (the Settlor) transfers property to another person (the Trustee) for the benefit of a third person (the Beneficiary). There are three types of parties involved in the administration of trusts and wills:

The Settlor

The Settlor is the person who creates the trust or will.

  • The role of the settlor is to create the trust or will and appoint the trustee.
  • The duties of the settlor include ensuring that the trust property or estate is properly managed and that the beneficiaries receive the benefits they are entitled to.
  • The powers of the settlor include appointing and removing trustees, altering the terms of the trust, and revoking the trust.

The Trustee

The Trustee is the person who manages the trust property or estate.

  • The role of the trustee is to manage the trust property or estate and ensure that the beneficiaries receive the benefits they are entitled to.
  • The duties of the trustee include safeguarding the trust property or estate, investing the trust property or estate, and distributing the trust property or estate to the beneficiaries.
  • The powers of the trustee include buying and selling property, borrowing money, and making payments to the beneficiaries.

The Beneficiary

The Beneficiary is the person who receives the benefits from the trust or estate.

  • The role of the beneficiary is to receive the benefits from the trust or estate.
  • The duties of the beneficiary include ensuring that the trustee manages the trust property or estate properly and that the beneficiaries receive the benefits they are entitled to.
  • The powers of the beneficiary include suing the trustee for breach of trust and asking the court to remove the trustee.

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Assignment Activity 2: Explain the rights and interests of the relevant parties under a trust and will.

Malaysian trusts and will typically involve three parties: the settlor, who creates the trust; the trustees, who manage the trust; and the beneficiaries, who receive benefits from the trust. Each of these parties has certain rights and interests under Malaysian law.

The settlor has the right to control the trust property and to appoint and remove trustees. The settlor also has an interest in ensuring that the trust is carried out according to his or her wishes. The settlor has a right to revoke the trust or change its terms, as long as this does not prejudice the rights of the beneficiaries.

The trustees have a fiduciary duty to act in the best interests of the beneficiaries. They also have a duty to manage the trust property in accordance with Malaysian law. The trustee has a duty to act in good faith and in accordance with both the terms of the trust deed and any instructions from the settlor. He or she must also exercise reasonable care and skill when managing the trust property.

The beneficiaries have an interest in receiving benefits from the trust and in having the trust property properly managed. They also have a right to sue the trustee for breach of trust. The beneficiary has a right to be provided with information about the trust property and its management, and to receive the benefits that he or she is entitled to under the terms of the trust.

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Assignment Activity 3: Relate the principles of the law of trust and succession to factual situations.

The law of trust and succession is relevant to many different types of factual situations. For example, the law may be relevant when someone dies leaving a will that appoints trustees to manage his or her estate. The law may also be relevant when someone creates trust for the benefit of his or her family members.

In both of these cases, the law establishes the rights and duties of the relevant parties. For example, the law establishes the right of the beneficiaries to receive benefits from the trust and the duty of the trustees to manage the trust property in accordance with Malaysian law.

The law of trust and succession is also relevant to other types of factual situations, such as when someone creates a trust for charitable purposes or when someone creates a trust to hold the property for the benefit of his or her descendants.

The law of trust and succession is a complex area of law. This brief overview has only touched on some of the basic principles. For more information, you should speak to a lawyer who specializes in this area of law.

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