Can I retain the property which I will be inheriting if I currently own a property?
If you will be inheriting a property, here’s what we know about whether you can retain it if you already own a property:
- If you currently own a private property and will inherit a private property
- If you currently own an HDB flat and will inherit an HDB flat
- If you currently own an HDB flat and will inherit a private property
- If you currently own a private property and will inherit an HDB flat
- Additional rules that will apply regardless of the category you fall in
Important
When HDB flats are involved, they are subject to HDB’s regulations. Additionally, HDB policies could still change over time. Hence, HDB itself is the best authority to clarify such matters, as they are the approving body for transactions involving HDB properties.
Even if you do not meet HDB’s criteria initially, you may appeal for an exception or seek approval from HDB for the HDB flat be held in trust.
If you currently own a private property and will inherit a private property
You can retain both your private property and the inherited private property.
If you currently own an HDB flat and will inherit an HDB flat
If you already own an HDB flat and will inherit another, you cannot keep both properties. HDB regulations explicitly state that individuals cannot concurrently own more than one HDB flat. If you inherit an HDB flat while owning one, you are required to sell either property within six months. Exceptions or extensions may be granted by HDB if valid reasons are provided, such as difficulty selling the flat within the stipulated timeframe.
If you currently own an HDB flat and will inherit a private property
HDB website does not explicitly outline guidelines for inheriting a private property while owning an HDB property. Our closest reference is from HDB website on “Acquiring Private Property”.
Households with at least one Singapore Citizen flat owner
"The flat owner, spouse, or occupier, who acquires the private residential property after the MOP, can retain the HDB flat."
The exception here is that for resale flats purchased without a CPF Housing Grant (for resale applications submitted before 30 August 2010), there is no requirement to satisfy the Minimum Occupation Period (MOP) before acquiring a private residential property.
Essentially, in this subcategory, you can retain both your HDB flat and the inherited private property if your HDB flat has fulfilled its MOP or is a resale flat purchased before 30 August 2010 without a CPF Housing Grant.
Households where all flat owners are Singapore Permanent Residents
"If all the owners of the flat are Singapore Permanent Residents (SPR), the owners are required to notify us before the owner, spouse or any occupier listed in the flat exercise the Option to Purchase (OTP) for purchase of a private residential property located in Singapore. The SPR owners can contact HDB using the e-Feedback Form to notify us of the intention to acquire a private residential property.
In addition, the SPR flat owners must sell the flat within 6 months of acquisition of completed/ uncompleted local private residential property by the flat owner, spouse or occupier."
However, do note that it is not explicitly stated if this applies to inheriting private property (i.e. whether SPR owners must sell the HDB flat to retain the private property). You will need to check with HDB if you fall into this sub- category.
If you currently own a private property and will inherit an HDB flat
There is conflicting information on this matter. Based strictly on HDB website, upon the demise of the sole owner or tenant-in-common:
"As the remaining family or single occupier, you are allowed to retain the existing flat, provided you:
- are a Singapore Citizen (SC) or Singapore Permanent Resident (SPR),
- are at least 21 years old, and
- satisfy our eligibility rules and conditions to own a flat."
Under the eligibility conditions for proposed flat owners; "Owners of private property or owners who have disposed of a private property within the last 15 months may take over the ownership of an HDB flat if they meet the following:
- The existing flat owner has fulfilled the requisite occupation period
- At least 1 of the proposed owners is a Singapore Citizen
- All proposed owners and listed occupiers must continue to live in the flat upon the change in flat ownership
Note: Private properties include but are not limited to local or overseas private properties (flat, house, building, land), HUDC flats, and Executive Condominiums. If you have acquired private property by gift, or inherited private property as beneficiaries under a Will or as a result of the Intestate Succession Act, or owned, acquired, or disposed of a private property through nominees regardless of the property’s location, you would be deemed as having acquired interest in the private property."
However, it is also listed that the proposed owners (both remaining and incoming) and occupiers staying in the flat must be able to take over ownership of the flat under 1 of the existing eligibility schemes. Regardless of the eligibility scheme, there is a common requirement that all applicants and occupiers listed in the HFE letter application:
- Must not own or have an interest in any local or overseas private residential property; and
- Must not have disposed of any private residential property within a specified time period.
Some external websites claim that if the inherited HDB flat was not subsidised and purchased before 30 August 2010, you can keep both the HDB flat and your private property. However, this requires you to live in the HDB flat and comply with HDB's eligibility requirements (e.g., citizenship, family nucleus).
It is unclear whether these external websites are accurate, as they do not provide reliable references for their information. Additionally, there is no mention of this on the HDB website.
Our suggestion is that if you fall into this category, the most accurate course of action would be to contact HDB directly regarding your specific case.
Additional rules that will apply regardless of the category you fall in
Foreign Person
If you are considered a foreign person in Singapore, you will need approval from Singapore Land Authority (SLA) if the property you are inheriting is does not fall into one of the categories under “TYPES OF PROPERTY FOR WHICH A FOREIGN PERSON CAN PURCHASE WITHOUT APPROVAL UNDER THE RESIDENTIAL PROPERTY ACT”.
Additional Buyer Stamp Duties & Property Count
There are no Additional Buyer Stamp Duty (ABSD) for transferring property from the deceased to the beneficiary. However, it will increase your property count if you inherit a property or even part of one (e.g. 30% of a private property). This increase in property count will subsequently affect your ABSD and other taxation matters.
Conclusion
For the testator, it’s important to understand that being able to gift a property does not automatically guarantee that the beneficiary can retain it, especially if an HDB flat is involved. What you can do is to cater for backup plans instead, such as for them to be entitled to its sale proceeds instead. For beneficiaries, the process is more straightforward. If you are set to inherit an HDB flat or currently own one, simply contact HDB regarding your specific case. They will provide you with precise guidance and the necessary steps to take.