Singapore Property Lawyers Wrap Their Heads Around New Trust Rules
What the Ministry of Finance Wants You to Know
From May 9 onward, moving a residential property into a living trust will trigger an additional buyer’s stamp duty (ABSD) of 35%. That’s a hefty sticker that was introduced as part of the latest cooling measures.
How a Living Trust Works
A living trust is set up while an individual is still alive, naming a trustee to manage the assets for the benefit of a future beneficiary. In practice, it’s a way to hand over the reins without passing through court.
Why the New ABSD Is Here
- The Government previously raised the ABSD to 17% for Singaporeans buying a second property in December 2023.
- Under the old rule, seller‐side stamp duty (BSD) applied when the property went into a living trust.
- ABSD might also have applied depending on the beneficial owner’s profile.
- This new rule flips the script: ABSD now applies even when no beneficial owner is identified at the time of transfer.
What the Ministry Of Finance Says
In a statement on Sunday, the MOF explained that “ABSD will be payable even if there is no identifiable beneficial owner at the time the residential property is transferred into a trust.”
They believe this will help keep the property market stable and sustainable.
Refunds—A Small Silver Lining
Trustees aren’t left empty‑handed. If certain conditions are met, they can ask the Inland Revenue Authority of Singapore (IRAS) to refund the new ABSD. They must lodge the refund request within six months from the execution of the trust document.
So, whether you’re a property enthusiast or a savvy investor, make sure you’re in the loop before the next stamp duty stamp hits your wallet!
