Yes, you can name a family member or friend as a trustee in Malaysia. There are no specific restrictions on appointing a family member or friend as a trustee, as long as they meet the legal requirements and are capable of carrying out the responsibilities of a trustee.
When choosing a family member or friend as a trustee, it is important to consider their qualifications, integrity, and ability to fulfill the duties and obligations of a trustee. The trustee’s role involves managing and protecting the trust assets, making informed decisions, acting in the best interests of the beneficiaries, and complying with legal and fiduciary duties.
Here are a few factors to consider when appointing a family member or friend as a trustee:
1. Trustworthiness and competence
Ensure that the person you choose is trustworthy, reliable, and capable of handling the responsibilities of a trustee. They should have the necessary financial acumen, organizational skills, and ability to make prudent decisions.
2. Impartiality and fairness
A trustee has a duty to act impartially and treat all beneficiaries fairly. Consider whether the individual you have in mind can remain neutral and make decisions in the best interests of all beneficiaries, without favoritism or bias.
3. Conflict of interest
Consider any potential conflicts of interest that may arise if you appoint a family member or friend as a trustee. They should be able to act objectively and prioritize the interests of the beneficiaries over personal interests.
4. Successor trustees
It is also prudent to name successor trustees in case the appointed family member or friend is unable or unwilling to continue serving as a trustee. This ensures a smooth transition of trustee responsibilities.
It is advisable to seek legal advice when creating a trust and appointing a trustee, especially if the trust is complex or involves substantial assets.