BUY PROPERTY IN TRUST

[Werther]

My friend is asking if he is able to buy a property hold in trust for his son, also to avoid absd? anyone can advise here?

thanks

[Arcachon]

http://www.guidemesingapore.com/taxation/planning/singapore-trust-setup

[princess_morbucks]

My friend is asking if he is able to buy a property hold in trust for his son, also to avoid absd? anyone can advise here?

thanks

http://www.iras.gov.sg/irashome/uploadedfiles/e-tax_guide/stamp_duty_absd_on_purchase_of_residential_properties_revised_edition.pdf

See P19 Question 18


I am buying an apartment to be held in trust for my friend who is a Hong Kong
citizen and who does not own any property in Singapore. Does ABSD apply as
I am a SC?

When you buy the apartment as a trustee, you are required to declare the identity of
the beneficiary, who is the intended owner. Since the beneficiary in this case is a
foreigner, the ABSD rate of 15% applies.

Seems like if ur fren is buying for his son, the ABSD will not apply to his son, assuming his son is a SC and this is his first property.

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This was discussed in this thread some time ago :

http://forums.condosingapore.com/showthread.php/17890-Using-Family-Trust-to-buy-property-and-avoid-ABSD

[Werther]

Hello Arcachon and Princess

Thanks for the link. It's been helpful.

So it looks like my friend is able to buy but hold In trust for the child, as long as it is fully paid...

He did call up lawyer to seek clarifications but it seem most not familiar with such arrangement.

After holding for say 5 years, if decides to sell, will subject to any tax.?

Any disadvantage for such arrangement? Pls advise.

Thanks

[princess_morbucks]

Hello Arcachon and Princess

Thanks for the link. It's been helpful.

So it looks like my friend is able to buy but hold In trust for the child, as long as it is fully paid...

He did call up lawyer to seek clarifications but it seem most not familiar with such arrangement.

After holding for say 5 years, if decides to sell, will subject to any tax.?

Any disadvantage for such arrangement? Pls advise.

Thanks

You may like to read this website, although it does not answer your questions.
But maybe the person who set up that website may be able to assist you?
Do let us know the outcome.
Cheers!
http://singaporelegaladvice.com/what-is-a-trust-trust-law-in-singapore/

[Werther]

You may like to read this website, although it does not answer your questions.
But maybe the person who set up that website may be able to assist you?
Do let us know the outcome.
Cheers!
http://singaporelegaladvice.com/what-is-a-trust-trust-law-in-singapore/


Spoke to some lawyers on the above... some said cannot buy for minor, the trustee still must pay absd...