Holding Residential Property on Inter Vivos Trusts in Singapore: Transfers of Equity Interests

Abstract

Following amendments to the ACD regime in Singapore, transferring equity interests to and from a trust with no beneficial owners will attract ACD, as will the exercise of a power of appointment by a trustee to grant equity interests to a beneficiary. Renunciation of interests in a bare trust will also attract ACD. Together with the introduction of ABSD (Trust), it is now impractical to use trusts to hold residential properties for succession planning purposes. Remaining options are to gift the properties without any strings attached or bequeath the properties in a will and risk subsequent changes to death taxation.

Keywords: Tax Law, Trusts Law, Taxation of Trusts, Singapore Law, Stamp Duties