Is it possible? Anyone tried it? Say create a family trust to buy a property and have it willed to children whom are still minor. can avoid absd?
Is it possible? Anyone tried it? Say create a family trust to buy a property and have it willed to children whom are still minor. can avoid absd?
This is a very good idea. I am also keen to know.Originally Posted by leesg123
brother leesg123, you are a GENIUS! I would like to know too. There are legal consultants lurking in this forum, it is time for you to contribute
Trusts cannot take loan. Property must be fully paid for.
Permanent 10% property tax.
Trust management fees abt 1% of AUM.
Still worth it or not depends on invidual risk and return expectations.
A trust is just an agreement where the trustee holds the ownership of a property for the benefit of the beneficiary so I don't think you can create a 'family trust' to buy a property/avoid ABSD.
The ABSD will be imposed on the purchaser (trustor) accordingly with or without the trust agreement.
try transacting and see if u kenna tax on profits.
Wow, sglee is indeed a genius!
It lead me to google search and I found this.
http://www.rodyk.com/usermedia/docum...y%20Notes2.pdf
Where parents provide for their children
Parents who desire to provide a property or some share in the family home to
their children will have to also bear in mind issues related to the residential
property count and ABSD implications.
Some parents currently hold property on trust for their child simply because
the child was a minor at the time the parents saw a good opportunity to
purchase property for the benefit of the child’s future. It is also quite common
for parents who hold real estate assets to provide that their properties be
divided equally to all their children upon their death. This arrangement may be
preferred to a trust, as property transferred pursuant to a will does not attract BSD, and therefore, ABSD (note however that if the property is not transferred
in accordance with the will, full duty will be charged on the excess entitlement
acquired by the beneficiary).
In both these scenarios, whether the child is a beneficiary under the will or a
trust, it should be noted that notwithstanding the child's indirect interest as
beneficiary, at the relevant time, the property in question would arguably go to
the child’s residential property count and affect his own ABSD liability in
future. If the child is Singaporean, it would be taken that this child already
owns one existing property (this is even though the interest in the existing
property may only be a part-share), so that ABSD will be payable on the
child’s first purchase in his personal capacity.
This one should work for you. I'm rooting for you.Originally Posted by yowetan
Our government is also a genius ! This will also ensure continuation of wealth or value of the GDP in our economy Thank You princess and brother sglee123 for sharing!Originally Posted by princess_morbucks
if you can think about it ... government already think about it beforehand ... lol
Originally Posted by 狮子王
But in future if they ever remove ABSD, then those who bought under the trust will have the last laugh, or maybe they are already dead by that time .Originally Posted by wt_know