How do I cater backup plans in my Will if my beneficiary for my HDB flat might not meet HDB’s eligibility criteria to retain the flat?
Being able to give your HDB flat away doesn't automatically translate to your beneficiary able to KEEP the HDB. The proposed owners (both remaining and incoming) and occupiers staying in the flat must be able to take over ownership of the flat under one of the existing eligibility schemes.
Additionally, the approval for the creation of trust over an HDB flat and transfer are subject to eligibilities and HDB's policy at the point of application. In the case of a testamentary trust, since the trust is not set up yet until the testator dies, HDB is unlikely to be able to give prior approval. What you can do is to make provisions in the case it is not approved.
Fortunately, for both issues, it is possible to appeal to HDB, but whether it would succeed is on a case by case basis. If all else fails, you could cater a clause in the Will for the said HDB flat to be liquidated so the beneficiary will receive the net proceeds of the HDB flat instead.
To do this, within the asset itself under "Additional Instructions", key in the following:
In the event the beneficiary(s) of this HDB flat does not automatically meet HDB’s eligibility criteria, please assist the beneficiary in the appeal process to allow him/her to retain the HDB flat, or to be held in trust till he/she is able to retain the HDB flat.
If the HDB flat is unable to be retained or held in trust, it is to be liquidated with the net proceeds to be given to the beneficiary(s) instead.
