Keep wealth in the family, generation after generation.
A Labuan family trust under the Labuan Trusts Act 1996. You place assets with us as your licensed trustee, to protect them, keep them private, and pass them on under terms you set today.
Make an enquiryWealth outlives the people who built it.
Without a clear holding structure, wealth scatters when it passes on. Heirs dispute it. A creditor or a foreign court can reach it. Probate and forced-heirship rules can override what you intended.
We act as professional trustee under the Labuan Trusts Act 1996. We combine a deed drafted to your circumstances with a Labuan FSA licensed channel to separate the assets from you, protect them, and pass them on under your terms.
See why families use itWho a Labuan family trust is for.
It suits families who want wealth to pass on intact, on their terms.
Business-owning families
Passing a company or shareholding to the next generation without fragmenting control.
Cross-border families
Assets and members in several countries, held in one structure.
Blended families
Provide for a current and a former family on terms you decide.
Succession without probate
Wealth passes on directly and privately, with no public probate.
A licensed Labuan trustee, directly accountable to you.
Because we hold the Labuan FSA trustee licence ourselves, the party answerable for your family's wealth is the regulated firm you spoke to, not a broker who sub-contracts the role. We serve you in English, Chinese and Malay.
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How a Labuan trust works.
At its core, a Labuan family trust is simple. You, the settlor, place assets into the trust. A trustee, which must include our licensed Labuan trust company, holds and manages them for the people you choose, your beneficiaries, under the rules you set in a trust deed.
You can stay close to it. You may be a beneficiary yourself, guide the trustee through a private letter of wishes, and keep certain powers. You can also appoint a protector: someone you trust to watch over the trustee and, for example, approve key decisions or replace them.
How a Labuan trust is structured.
The parties, types, assets and duration under the Labuan Trusts Act 1996.
- The parties
- A settlor who places the assets, a trustee that must include a licensed Labuan trust company, the beneficiaries, and an optional protector or enforcer.
- Trust types
- Distributions can be discretionary or fixed-interest. The Act provides for purpose, charitable, spendthrift, special and reserved-powers trusts.
- Who can settle one
- Non-residents can establish a Labuan family trust. The settlor, the beneficiaries and the assets can all be foreign.
- What it can hold
- Movable and immovable property, in Malaysia and abroad. Malaysian-situated property requires prior Labuan FSA approval.
- Duration
- A fixed period or in perpetuity. Where the terms are silent, it continues for an unlimited period.
- Registration
- Optional. Registered or not, the trust is confidential, with no public register.
Why families use a Labuan trust.
Protection, succession and control under the Labuan Trusts Act 1996.
Pass it on across generations
Wealth moves to the next generation under the terms you set, without probate. A Labuan trust can run in perpetuity.
Held beyond foreign claims
Under Section 10 of the Act, foreign forced-heirship, matrimonial and succession judgments are not enforceable against a valid Labuan trust.
Held beyond personal creditors
Assets sit apart from the settlor. A creditor can only challenge a transfer by proving it was made to defraud them, to the standard of beyond reasonable doubt.
Kept private
Trust details are held privately by your licensed trustee, with no public register. Disclosure is limited to a court order, the regulator or your consent.
Stay in control
Guide distributions through a letter of wishes. The settlor may reserve certain powers or be a beneficiary, without invalidating the trust.
Keep more of what you pass on
Taxed at 0% on investment-holding income and 3% on trading profits under LBATA, where the substance rules are met. Distributions are exempt from Labuan tax, though beneficiaries may be taxed in their home country.
A trust or a foundation?
A Labuan trust is a relationship: you place assets with a trustee for your beneficiaries. A Labuan foundation is a separate legal entity you endow, with its own council. A trust favours flexibility and privacy; a foundation favours a corporate form and continuity.
We help you pick the one that suits your family, and coordinate it with your will and estate plan through our legal services.
How we set up your Labuan trust.
A non-registered trust is typically settled in around two to three weeks. A registered trust takes longer, as the Labuan FSA step alone runs about three weeks.
Appoint your trustee
We act as your licensed Labuan trust company, the trustee the law requires.
Due diligence
We run KYC on the settlor and the beneficiaries, the basis of a clean structure.
Draft the deed
We draft the trust deed to your circumstances, with your private letter of wishes.
Settle and register
You transfer the assets in. We register the trust with Labuan FSA where you choose to.
Frequently asked.
Direct answers on parties, trust types, protection, tax, timing and how a trust compares to a foundation.
What is a Labuan family trust?
A Labuan family trust is a common-law arrangement under the Labuan Trusts Act 1996. A settlor transfers assets to a trustee, which holds and administers them for named beneficiaries under a trust deed. This creates legal separation between the settlor and the assets, giving the trust its protective and succession properties across generations.
Who can act as trustee for a Labuan family trust?
A Labuan trust must have a licensed Labuan trust company as one of its trustees. QX Trust holds a Labuan Managed Trust Company licence and acts as professional trustee for family trusts.
What types of Labuan trust are available?
Distributions can be discretionary, where the trustee decides, or fixed-interest. The Labuan Trusts Act 1996 provides for purpose, charitable, spendthrift (protective), special and reserved-powers trusts. A special trust lets the trustee hold company shares while the directors run the company.
What is the role of a protector in a Labuan trust?
A protector is an optional party appointed under the trust to oversee the trustee. Powers can include removing or appointing trustees, withholding consent from specified actions, and changing the place of administration. The settlor or a beneficiary may also act as protector.
Can a non-Malaysian establish a Labuan family trust?
Yes. A Labuan family trust can be established by non-residents. The settlor, the beneficiaries and the assets can all be foreign, with no requirement for a Malaysian connection. Malaysian-situated property requires prior Labuan FSA approval.
Is my wealth protected from creditors in a Labuan trust?
Under Section 10 of the Labuan Trusts Act 1996, foreign forced-heirship, matrimonial and succession judgments are not enforceable against a valid Labuan trust. Section 11 lets a creditor challenge a transfer only by proving it was made to defraud them, to the criminal standard of beyond reasonable doubt. Protection is strong but not absolute.
Is a Labuan family trust registered publicly?
Registration with Labuan FSA is optional. Whether registered or not, the trust is confidential with no public search. Disclosure is limited to a court order, the regulator, your consent or AML obligations.
How is a Labuan trust taxed?
A Labuan trust is taxed at 0% on investment-holding income and 3% on trading profits under LBATA, where the substance requirements are met. Distributions are exempt from Labuan tax, though beneficiaries may be taxable in their own country of residence.
Can the settlor keep control of a Labuan trust?
Yes. The settlor can guide the trustee through a letter of wishes and may reserve certain powers or be a beneficiary, without invalidating the trust. A sole trustee cannot be the sole beneficiary.
How long can a Labuan trust last?
A Labuan trust can run for a fixed period or in perpetuity. Where the terms are silent, it continues for an unlimited period, which suits succession across generations.
How long does it take to set up a Labuan trust?
A non-registered Labuan trust is typically established in around two to three weeks. A registered trust takes longer, as the Labuan FSA registration step alone runs about three weeks. Timing depends on the deed and due diligence.
Should I choose a Labuan trust or a Labuan foundation?
A Labuan trust is a relationship: you place assets with a trustee for your beneficiaries. A Labuan foundation is a separate legal entity you endow, with its own council. A trust favours flexibility and privacy; a foundation favours a corporate form and continuity. We help you pick the one that suits your family.
Is a Labuan trust legally recognised and enforceable?
Yes. A validly created Labuan trust is recognised and enforceable by the Malaysian courts at Labuan under the Labuan Trusts Act 1996.
Plan how your wealth passes on.
Tell us about the family and the assets. We pick the structure, draft the deed, and act as your Labuan FSA licensed trustee.
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