Holding Residential Property on Inter Vivos Trusts in Singapore: Transfers to Trustees
(2022) 28(10) Trusts & Trustees 938-948
Posted: 6 Oct 2022 Last revised: 21 Mar 2023
Date Written: October 1, 2022
As a response to the “missing beneficial owner” problem highlighted by the Zhao Hui Fang case, amendments have been made to Singapore’s stamp duty regime. ABSD will now be levied at 35% on transfers of residential property to trustees, with a remission available if certain conditions are met. These conditions effectively mean that residential property held on inter vivos trusts in Singapore must be given to beneficiaries without conditions or powers of revocation or variation. This has major ramifications for succession planning, since such restrictions largely defeat the purpose of using a trust to hold property in the first place.
Keywords: Tax Law, Trusts Law, Taxation of Trusts, Singapore Law, Stamp Duties
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