Ramli, Noor Rashidah and Halim, Akmal Hidayah and Mat Yaman, Khariyah and Mohd Salim, Wan Noraini and Ali, Zuraidah (2026) Safeguarding land transfers in estate planning: misuse of trust deeds and the need for regulatory reform in Malaysia. International Journal of Law, Government and Communication, 11 (43). pp. 264-275. E-ISSN 0128-1763
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Abstract
Estate planning is a vital aspect of personal wealth management, ensuring that assets are safeguarded and efficiently transferred to intended beneficiaries. Estate planning involving lands commonly involves wills and inter-vivos gifts, but trust deeds have also become a popular mechanism. The increasing use of trust deeds, however, has given rise to land scam issues, especially in skewer lot cases, sparking concerns among land authorities. Literature and preliminary studies highlight misuse of trust deeds as a way to circumvent restrictions under the Torrens System as embodied in the National Land Code (Revised 2020) [Act 828]. Such misuse undermines the objectives of estate planning, creating risks of manipulation of inheritance processes and threatening intergenerational sustainability. This article examines the significance of estate planning in wealth management, focusing on the problem of trust deed misuse. It specifically analyses the concept of restriction in interest under Malaysia’s land tenure system and the potential consequences if such trust deeds are allowed to be registered without safeguards. Employing a qualitative content analysis within the doctrinal legal research methodology, the study reviewed primary and secondary sources including legislation, books, articles, and case studies. Findings reveal the absence of a procedural framework to validate trust deeds prior to registration in the land title system. This legal gap creates opportunities for fraudulent practices where trust deeds are misused to bypass laws and regulations. The study concludes that while trust deeds can be effective estate planning tools, their unregulated use exposes landowners and beneficiaries to significant risks. Thus, enhanced supervision by land authorities, supported by a clear procedural framework, is crucial to ensure synchronization of land administration and protection of land interests
| Item Type: | Article (Journal) |
|---|---|
| Uncontrolled Keywords: | Estate Planning, Land Transfer, Restriction in Interest, Trust Deed, Wealth Management |
| Subjects: | K Law > K Law (General) K Law > K720 Property Law |
| Kulliyyahs/Centres/Divisions/Institutes (Can select more than one option. Press CONTROL button): | Ahmad Ibrahim Kulliyyah of Laws |
| Depositing User: | Dr Khariyah Mat Yaman |
| Date Deposited: | 06 May 2026 17:14 |
| Last Modified: | 06 May 2026 17:14 |
| Queue Number: | 2026-05-Q3176 |
| URI: | http://irep.iium.edu.my/id/eprint/128801 |
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