How do I specifically allocate a property into a testamentary trust for the benefit of all my children?
This article is private properties (e.g. condominium, landed property). You will need to seek approval from HDB if you intend to put the HDB flat in a trust.
There may also be implications on ABSD and property count. For example, there are no Additional Buyer Stamp Duty (ABSD) for transferring property into a Trust upon death (e.g. Testamentary Trust) nor any inheritance tax in Singapore. However, it may increase the property count of the beneficiary which can then affect their ABSD in buying future property.
Do note that HDB regulations do change over time and cases are reviewed on a case by case basis. Such an arrangement does not guarentee that it will not affect the beneficiaries' HDB eligibility. The trustee will have to work with the beneficiaries accordingly should such circumstance arise.
In the Appoint People page, add a testamentary trust and configure the name of the testamentary trust, the Trustee(s), and the Trustee Powers accordingly.
Under the Trust Beneficiary section, add the children and for each of them you can select the payout as "Others" and key in:
-- see Additional Trust Instructions below --
Under the Remainder Beneficiary Section, add in all the children accordingly.
Toggle on “Additional Trust Instructions” and key in the following (please edit accordingly):
This paragraph will take precedence over any inconsistent or conflicting instructions in this Testamentary Trust.
My intention is for the property located at {address} to be held under this Testamentary Trust for the benefit of all my children.
{Property Management Clause}
{Termination Clause}
Property Management Clause Examples
This clause is meant to outline what to do with the property.
The property is meant to provide rent-free accommodation for my children. I request that the property not be partially or fully rented out while any of my children are residing in it.
OR
The property is meant to generate income for my children. I request that the property to be rented out to provide income which is to be equally distributed amongst my children.
Termination Clause Examples
This clause is meant to determine the conditions for the termination of the trust, typically chosen when the youngest child reaches a certain age or when all children have their own property. It will also outline what to do with the property then.
Once my youngest child, {Name}, {Identification Number/details}, reaches age XX, the property located at {address of property} shall be liquidated, and this Trust shall be terminated. The remaining balance of the Trust Fund, including the net proceeds of the property, shall be distributed to the Remainder Beneficiary(ies) as per the section on “Balance of the Trust Fund” above.
OR
Once all of my children have obtained their own property, the property located at {address of property} shall be liquidated, and this Trust shall be terminated. The remaining balance of the Trust Fund, including the net proceeds of the property, shall be distributed to the Remainder Beneficiary(ies) as per the section on “Balance of the Trust Fund”.
OR
Once my youngest child, {Name}, {Identification Number/details}, reaches age XX, the ownership of the property located at {address of property} shall be transferred to the Remainder Beneficiary(ies) according to the proportions specified in the section on “Balance of the Trust Fund” above. This Trust shall be terminated and the Remainder Beneficiary(ies) shall collectively decide the future of the property. Any remaining balance of the Trust Fund shall be distributed to the Remainder Beneficiary(ies) as per the section on “Balance of the Trust Fund”.
OR
Once all of my children have obtained their own property, the ownership of the property located at {address of property} shall be transferred to the Remainder Beneficiary(ies) according to the proportions specified in the section on “Balance of the Trust Fund” above. This Trust shall be terminated and the Remainder Beneficiary(ies) shall collectively decide the future of the property. Any remaining balance of the Trust Fund shall be distributed to the Remainder Beneficiary(ies) as per the section on “Balance of the Trust Fund”.