How modern legacy planning in Malaysia goes beyond wills and trusts

As wealth becomes increasingly complex, Prudential Assurance Malaysia Berhad explores how modern legacy planning can go beyond wills and trusts to preserve wealth, provide liquidity and shape how future generations inherit

For many successful individuals, building wealth is only part of the journey. The more challenging question often comes later: how can that wealth be passed on in a way that protects not only financial value, but also family relationships, intentions and opportunities for future generations?

It is a question that has become increasingly relevant as wealth grows more global and family structures become more complex. Businesses span multiple countries, children study or settle overseas and investment portfolios extend well beyond domestic property. Against this backdrop, legacy planning has evolved beyond just writing a will.

The story of Hong Kong entertainment icon Lydia Shum offers an interesting perspective. When the beloved actress passed away in 2008, she left behind an estate reportedly worth around HK$60 million for her daughter, Joyce Cheng. Rather than allowing unrestricted access to the inheritance, the estate was structured so Cheng reportedly received a monthly allowance before inheriting the principal at a later stage in life. The arrangement reflected a philosophy that resonates with many families today. A legacy is not simply about leaving wealth behind. It is about creating a framework that allows it to benefit future generations in the way its creator intended. That distinction is becoming increasingly important.

Above Hong Kong entertainment icon, Lydia Shum

Hong Kong entertainment icon, Lydia Shum

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Traditionally, wills and trusts have formed the backbone of legacy planning, providing legal clarity around how assets should be distributed. While these remain fundamental, affluent families are increasingly recognising that legal documents alone do not necessarily address the practical realities of transferring wealth.

One of the most pressing challenges is liquidity. Across Asia, much of the wealth held by high net-worth individuals is tied up in businesses, investment portfolios and property. These are assets that may hold considerable value on paper, yet cannot always be readily converted into cash when families need immediate access to funds.

Without sufficient liquidity, beneficiaries may find themselves having to sell cherished family assets, business interests or property sooner than planned to meet financial obligations. In some cases, unequal entitlement among family members, particularly when a successor is set to inherit the majority stake in the family business, can complicate the distribution of wealth and create unnecessary tension. Insurance can help resolve this dilemma by equalising entitlement among beneficiaries, allowing a founder to pass the business to their preferred successor while maintaining harmony within the family.

Above PRUPrestige Legacy’s Legacy Settlement Option gives greater flexibility over how beneficiaries receive their inheritance

PRUPrestige Legacy’s Legacy Settlement Option gives greater flexibility over how beneficiaries receive their inheritance

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This is one reason insurance has taken on a much broader role within modern legacy planning. Increasingly, it is being viewed not simply as protection against unforeseen events, but as a strategic asset that complements traditional legacy planning by providing immediate liquidity when it matters most. It allows families greater flexibility to settle obligations, preserve long-term investments and make decisions without the pressure of forced asset sales.

This shift is already evident across Asia’s affluent community. High-net-worth individuals are increasingly maximising their insurable capacity, with recent cases reaching coverage sums of up to US$300 million under a single policy. Research also suggests that insurance is emerging as a core asset holding among ultra-high-net-worth individuals, increasingly complementing or even replacing traditional property holdings.

Above Chee Foong Wai, chief customer, marketing and product officer of Prudential Assurance Malaysia Berhad

Chee Foong Wai, chief customer, marketing and product officer of Prudential Assurance Malaysia Berhad

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According to Knight Frank research, Malaysia has the third-fastest-growing Ultra-High-Net-Worth Individual (UHNWI) population in Asia, behind only India and Mainland China. This reflects a promising trend, with Malaysia’s high-net-worth community expanding rapidly and highlighting the increasing importance of wealth preservation and legacy planning.

“Today’s high-net-worth individuals are thinking beyond wealth creation, and more towards how wealth can endure borders and generations,” says Chee Foong Wai, chief customer, marketing and product officer of Prudential Assurance Malaysia Berhad. “As Asia experiences the Great Wealth Transfer, many are rethinking how wealth can be preserved and passed on when families, assets and future generations may be based in different parts of the world. PRUPrestige Legacy was created to help customers take a longer-term view of wealth planning and navigate these evolving needs.”

Liquidity is only one part of the equation. As the wealth becomes more borderless, many affluent families today have children living abroad, investments spread across multiple markets and businesses operating internationally. Legacy planning therefore extends beyond deciding who receives what. It also involves considering how wealth can retain its value across borders and continue supporting beneficiaries regardless of where they are in the world.

Above Across Asia, much of the wealth held by high net-worth individuals is tied up in businesses, investment portfolios and property

Across Asia, much of the wealth held by high net-worth individuals is tied up in businesses, investment portfolios and property

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This growing complexity has led to solutions that are designed with global families in mind. PRUPrestige Legacy by Prudential Assurance Malaysia Berhad (PAMB), for example, allows policyholders to reference their coverage against major global currencies, helping preserve the value of coverage over time while supporting cross-border legacy planning. Additionally, Prudential pioneers in offering gold as reference assets to coverage, offering customers an alternate option, beyond six major currencies.

By providing upside potential when currencies or gold perform well, together with a guaranteed floor should markets weaken, the plan seeks to help safeguard the value of wealth intended for future generations.

Equally significant is the growing recognition that how wealth is transferred can be just as important as how much is transferred. Rather than viewing inheritance as a single financial event, many families are exploring ways to align wealth distribution with life’s important milestones. This reflects a broader philosophy of encouraging financial stewardship while continuing to provide support long after the original wealth creator is gone.

Above Affluent families are recognising that legal documents alone do not fully address the realities of transferring wealth

Affluent families are recognising that legal documents alone do not fully address the realities of transferring wealth

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That thinking is reflected in features such as PRUPrestige Legacy’s Legacy Settlement Option, which gives policyholders greater flexibility over how beneficiaries receive their inheritance. Instead of a conventional lump sum, benefits may be structured as regular instalments over time or linked to milestones such as marriage or the birth of a child, allowing a legacy to continue supporting future generations in meaningful ways.

Legacy planning is also about recognising that wealth itself should continue evolving. A carefully designed legacy strategy considers today’s assets and how they can continue growing over time before eventually being passed on.

With this in mind, PRUPrestige Legacy incorporates features that support long-term wealth accumulation, including 100 per cent premium allocation, loyalty rewards and bonuses. Its Legacy Enhancer feature also increases protection progressively over time, up to 50 per cent extra without additional charges, helping a policyholder’s legacy grow alongside life’s milestones.

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The plan also reflects another evolving perspective on wealth planning, recognising the value of healthy living. Eligible individuals who meet the preferred underwriting criteria may benefit from more favourable insurance charges, rewarding those who proactively manage their health while enhancing the long-term value of their protection.

PRUPrestige Legacy was created to help customers take a longer-term view of wealth planning and navigate these evolving needs

- Chee Foong Wai -

Ultimately, the most enduring legacies are rarely defined by wealth alone. They are measured by the opportunities they create, the stability they provide and the values they carry forward.

Lydia Shum’s estate serves as a reminder that thoughtful planning can shape how future generations experience an inheritance, not just receive one. Today, as families become more global and wealth becomes more sophisticated, legacy planning is increasingly about ensuring that financial success continues to support loved ones with purpose, flexibility and resilience for years to come.

For families looking to put these considerations into practice, a Prudential Wealth Planner can assist in exploring how PRUPrestige Legacy may support cross-border legacy planning, strengthen family governance and optimise the transfer of wealth to the next generation.

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Images: Getty Images, Prudential

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PRUPrestige Legacy Prudential Assurance Malaysia Berhad legacy planning wealth transfer

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