Malaysia legislation
Section 6
Section 6
Proper law of a trust and power to change proper law
(1A)
Subject to subsection (1B), the proper law of a trust shall be—
(a)
the law chosen by the settlor to be applicable to a trust, the choice being expressed or implied in the terms of the trust; or
(b)
where no law is chosen, the law with which a trust is most closely connected at the time of its creation.
(1B)
In ascertaining the law with which a trust is most closely connected, reference shall be made, in particular, to—
Labuan Trusts 13
(a)
the place of administration of the trust designated by the settlor;
(b)
the situs of the property of the trust;
(c)
the place of residence or business of the trustee; and
(d)
the objects of the trust and the places where they are to be fulfilled.
(1C)
Without precluding other means for ascertaining the designated jurisdiction with which a trust is most closely connected, the terms of a trust designating the place of administration are valid and conclusive if—
(a)
a trustee’s principal place of business is located in or a trustee is resident of the designated jurisdiction; or
(b)
all or any part of the administration occurs in the designated jurisdiction.
(2)
The terms of a trust may provide for the proper law of the trust to be changed from the laws of one jurisdiction to the laws of another jurisdiction and vice versa, subject to the provisions of this Act and to the recognition of such a change by the relevant laws of the other jurisdiction, in particular as regards the validity of the trust and the interests of the beneficiaries.
(3)
A change in the proper law shall not affect the legality of, or render any person liable for, anything done before the change.
PART IA
ADMINISTRATION OF THE ACT
Administration of the Act