The creation of a Labuan trust is generally for an individual or a settlor to give specific property to a third party to be held for the benefit of others, including charities. The Labuan Trust Act 1996 (LTA) allows the creation of the following types of trust:
Purpose trusts;

  • Charitable trusts;
  • Spendthrift or protective trusts; and
  • Labuan special trusts.


A Labuan trust may be created or established for a specific particular purpose which could be charitable or otherwise. A charitable purpose means and includes any of the following description of purposes:

  • The relief or eradication of poverty;
  • The advancement of education;
  • The promotion of art, science and religion;
  • The protection of the environment;
  • The advancement of human rights and fundamental freedom; or
  • Any other purposes which are beneficial to the community.