Bare Trust Deed Template for Malaysia

A Bare Trust Deed is a legal document governed by Malaysian law that establishes a simple trust arrangement where the trustee holds legal title to assets but must act solely on the beneficiary's instructions. The document outlines the trust property, parties involved, and their respective rights and obligations under Malaysian trust law, particularly the Trustees Act 1949. It creates a transparent structure where the beneficiary has absolute right to both the capital and income of the trust property, with the trustee serving purely as a nominal legal owner.

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What is a Bare Trust Deed?

A Bare Trust Deed is essential in Malaysian legal practice for creating simple trust arrangements where the trustee's role is limited to holding legal title of assets for the benefit of the beneficiary. This document type is commonly used in property transactions, family arrangements, and investment structures where the beneficiary requires full control over the trust assets while maintaining separate legal ownership. The deed must comply with Malaysian trust law, particularly the Trustees Act 1949 and related legislation, and typically includes detailed provisions about the trust property, parties' rights, and administrative matters. The Bare Trust Deed is particularly useful in situations where the separation of legal and beneficial ownership is desired for practical or strategic reasons, while maintaining simplicity in trust administration.

What sections should be included in a Bare Trust Deed?

1. Parties: Identifies the Settlor, Trustee(s), and Beneficiary(ies) with their full legal names and addresses

2. Background: Sets out the context and intention to create a bare trust, and confirms the Settlor's right to transfer the trust property

3. Definitions: Defines key terms used throughout the deed including 'Trust Property', 'Trust Period', and other relevant terms

4. Declaration of Trust: Formal declaration establishing the bare trust and confirming the Trustee holds the legal title for the benefit of the Beneficiary

5. Trust Property: Detailed description of the assets being placed in trust

6. Trustee Powers and Duties: Specifies the limited powers of the Trustee in a bare trust context, emphasizing their duty to act on beneficiary instructions

7. Rights of Beneficiaries: Establishes the absolute right of beneficiaries to direct the trustees and their entitlement to the trust property

8. Trust Period: Defines the duration of the trust, typically until the beneficiary requests transfer of legal title

9. Proper Law and Jurisdiction: Confirms Malaysian law as governing law and establishes jurisdiction for disputes

10. Execution: Formal execution clause and signature blocks for all parties

What sections are optional to include in a Bare Trust Deed?

1. Trustee Remuneration: Include when trustees are to be compensated for their services, though uncommon in bare trusts

2. Trustee Retirement and Replacement: Include when specific provisions for trustee succession are required

3. Tax Provisions: Include when specific tax treatment needs to be addressed or clarified

4. Multiple Beneficiaries: Include when there is more than one beneficiary to specify their respective interests

5. Foreign Assets: Include when trust property includes assets located outside Malaysia

What schedules should be included in a Bare Trust Deed?

1. Schedule 1 - Trust Property: Detailed inventory and description of all assets comprising the trust property

2. Schedule 2 - Powers of Investment: List of permitted investment powers if any discretion is granted to trustees

3. Schedule 3 - Beneficiary Details: Full details of beneficiaries including their respective entitlements if multiple beneficiaries

4. Appendix A - Copy of Relevant Title Documents: Copies of property titles or other ownership documents for trust assets

5. Appendix B - Consent Documents: Any required consent forms or authorities related to the trust property

Authors

Alex Denne

Head of Growth (Open Source Law) @ Genie AI | 3 x UCL-Certified in Contract Law & Drafting | 4+ Years Managing 1M+ Legal Documents

Jurisdiction

Malaysia

Publisher

Genie AI

Document Type

Trust Deed

Cost

Free to use

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