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Using Trust to Bypass Additional Buyer Stamp Duty
#1
This is not a secret so I am able to post it out. Below is an extract from IRAS:

Quote:An entity means a person who is not an individual. It includes the following:
  • An unincorporated association
  • A trustee for a collective investment scheme when acting in that capacity
  • A trustee-manager for a business trust when acting in that capacity
  • The partners of the partnership whether or not any of them is an individual, where the property conveyed, transferred or assigned is to be held as partnership property
If a property is jointly purchased by buyers of different profiles, the profile with the highest ABSD rate will apply.

If A purchases a residential property to be held on trust for the beneficial owner B, ABSD is charged based on the profile of the beneficial owner, B.

It means the Father can buy a property and put it under your 1 month's old son and assign the trustee as the mother. When price is right or anytime the parents feel like it, they can sell the property for profit or keep it for future use. As long as the son never see the trust deed, he will never know such thing exist nor he can sue his parents for mismanagement of the trust after sold and pocketed the money. As long they continue pay the property taxes for this property, the son will never suspect.  Cool
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#2
Haha, easily there are 3 illegal things over there already.
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#3
LOL... How many people are actually doing this?
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#4
That is a good idea, stamp duty is just a measure and it could be lifted anytime before a child turn 21. What if it increase instead? :O
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#5
Good to know it......
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#6
Thanks for sharing.....
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#7
When you are rich, there are many ways to have your ABSD waived or discharged.

Just don't make any rush decision when you are not rich.
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#8
Poor people like us cannot even buy another property with or without additional buyer stamp duty.
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