Malaysia legislation

Section 10

of *LABUAN OFFSHORES TRUSTS ACT 1996

Section 10

(a)

the personal and proprietary consequences of marriage or the termination of marriage;

(b)

succession rights, whether testate or intestate, including the fixed shares of spouses or relatives;

(c)

any claims or orders of court with regard to matters referred to in paragraph (a) or (b) in reference to the personal laws of the settlor or the beneficiaries;

(d)

the claims of creditors in an insolvency subject to the provisions of section 11;

(e)

any claims with regard to the validity of any transfer or disposition of property into the Labuan trust;

(f)

any claims with regard to the capacity of the settlor; or

(g)

any claims by reason that the laws of any foreign jurisdiction prohibit or do not recognise the concept of a trust.

(2)

For the avoidance of doubt, it is hereby declared that in the event of any inconsistency between the proper law of a trust and the personal laws of the settlor or the beneficiaries, the former shall prevail.

20 Laws of Malaysia ACT 554

(3)

Where the settlor of a Labuan trust is a resident, this section shall only apply in so far as it is consistent with any written law in

Malaysia.

Fraudulent Labuan trust or disposition