Objective:
You like many families’ business, encounter challenges when it comes to business succession. Family-in-fighting and loss of control are some of the issues faced, leading to the loss of family wealth within a generation or two.

Without a proper wealth and business succession plan, family-owned businesses may be at risk. If you are the owner of a family business, you may want the business to go on for generations. Some family businesses have failed to continue operating due to lack of succession plan.

The Solution:
One of the most crucial things you can do to ensure your business’s future success is to create an effective family business succession plan. At Rockwills, we can help you with the best wealth management succession planning.

You can have a Family Business Trust or Family Foundation to solve your concerns.

A Family Business Trust – it protects your business while keeping shareholdings within the Family. This trust can last for a period of 80 years.

A Family Foundation – It is a separate legal entity, established to hold and manage assets for the benefit of your family. It offers the benefits of a Trust and the structure of an independent company with protection of assets not available in others. This is set up in Labuan and is governed under the Labuan Foundation Act 2010.

How The Family Business Trust or Family Foundation Can Helps You:

Rockwills provides a comprehensive family business succession plan to help alleviate your pressure and give you the peace of mind you deserve. Discover our solutions designed to safeguard and ensure that the success you built over many years continues to be your legacy for many generations to come.

• Prevent the fragmentation or segmentation of family business shares after the founder’s passing.

Utilizing Family Business Trust or Family Foundation structures can be part of the succession plan to maintain control and ownership of the family business.

By transferring shares to a trust or holding company, the founder can ensure that the business remains consolidated under a single entity. This structure prevents the fragmentation of shares and provides a centralized control mechanism for the business.

It outlines who will assume leadership roles after the founder’s passing. By clearly designating the successor(s) and their respective responsibilities, the plan ensure the business remains intact and avoids the division of shares among multiple family members.

• Successor preparation and training

The succession plan includes provisions for preparing and training the identified successor(s) to take over the leadership and management of the business.

This ensures that the chosen successor(s) possess the necessary skills, knowledge, and expertise to effectively run the business.

• Avoids probate.

Assets endowed by the founder during lifetime to the Family Foundation shall no longer form part of the founder’s estate upon his demise. Subject to the laws of the founder’s tax residence at the material time, the inheritance tax may not apply to assets endowed to the foundation prior to the founder’s demise.

• Control

The assets of a foundation are legally owned by the Family Foundation as opposed to a third-party trustee. The founder during his lifetime may be given exclusive powers to exert control over the management and operations of the Family Foundation.

• Perpetual existence

Unlike a trust created under Malaysia Law, the existence of a Labuan Foundation is not limited by any rule against perpetuity. This is crucial for multigenerational wealth succession planning.