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Thread: Using Family Trust to buy property and avoid ABSD?

  1. #1
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    Default Using Family Trust to buy property and 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?

  2. #2
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    Quote Originally Posted by leesg123
    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.

  3. #3
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    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

  4. #4
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    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.

  5. #5
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    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.

  6. #6
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    try transacting and see if u kenna tax on profits.

  7. #7
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    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.

  8. #8
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    Quote Originally Posted by yowetan
    This is a very good idea. I am also keen to know.
    This one should work for you. I'm rooting for you.

  9. #9
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    Quote Originally Posted by princess_morbucks
    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
    ...
    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.
    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!

  10. #10
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    if you can think about it ... government already think about it beforehand ... lol

    Quote Originally Posted by 狮子王
    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!

  11. #11
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    Quote Originally Posted by wt_know
    if you can think about it ... government already think about it beforehand ... lol
    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 .

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