How do I allocate my property to a testamentary trust which will provide my trust beneficiary(s) the property’s rental income?
Please note that this is not applicable for HDB as 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.
In the Appoint people page, toggle on Add Testamentary Trust and click on the (+) button to create a testamentary trust. You can also allocate the property to an existing testamentary trust if there already is one.
Select the Trust Name, Trustees and Trustee Powers accordingly. In the Trustee Powers section, make sure that the toggle for Lease any part of Trust Fund is selected.
Under Trust Beneficiary, add a new Payout, under “Give:” select the option “Others”. Under “Please describe the payout & condition” key in the following (please edit accordingly).
To give him/her XX% of the net rental proceeds collected each month (if any) from the property located at {address}.
If you have other instructions to the trust such as how to manage the property or a particular timeline where you want the trust to terminate, you can add this in under Additional Trust Instructions (e.g. This testamentary trust shall terminate when my youngest child reaches age 25, with the remaining balance of the Trust Fund to be distributed to my Remainder Beneficiaries according to the proportion under “Balance of the Trust Fund” above).
In the Allocate Assets page, allocate the property to the testamentary trust accordingly.
