SINGAPORE: New rules imposing an Additional Buyer’s Stamp Duty on residential properties transferred into a living trust will close a loophole in the existing system, said experts.
Dr Lee Nai Jia, deputy director of NUS’ Institute of Real Estate and Urban Studies said the move closes a loophole for such buyers, who are usually high net worth individuals. Mr Lam Chern Woon, Head of Research and Consulting at Edmund Tie, said the move serves to “level the playing field” among buyers.
This is because if the child’s interest in the property is contingent on a condition, such as graduating from university, he is not an “identifiable individual beneficiary” – a necessary criterion for a refund, according to authorities. He added that such arrangements, where wealthy parents buy properties on trust for their children, will also still probably continue.
"Some high net worth individuals or family offices may use complex multi-layer ownership structures to mask the true ownership of certain assets."