Does buying a property in trust for my child avoid ABSD?

No. ABSD (Trust) is payable up front when residential property is transferred into a living trust, at 65% for documents signed on or after 27 Apr 2023 (35% from 9 May 2022). Where all the beneficiaries are identifiable individuals, IRAS refunds the difference between 65% and the highest beneficial owner's own ABSD rate, on an application made within six months of the instrument.

What is the difference between a grant of probate and letters of administration?

A grant of probate is issued where the deceased left a valid will — it confirms the executor's authority to deal with the estate. Letters of administration are granted where the person died intestate (no will), appointing an administrator to distribute the estate. A buyer purchasing from an estate should confirm the correct grant is in place before completing.

If one co-owner dies, does their share always pass under their will?

Only if they held the property as tenants in common — then their share forms part of their estate and passes by will or intestacy. If they held as joint tenants, the right of survivorship applies and the interest passes automatically to the surviving joint tenant, outside the estate, regardless of any will.

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Paper 1 · Basic Land Law: Estates & Registration of Title · 17 min read

Trusts, Gifts, Succession & Future Interests in Property

Practise these sections, in sets of about 30:

Must-know for the exam

A minor (under 21) cannot contract to buy land (CLA s 35), so an adult trustee holds title on trust; resulting and constructive trusts need no writing (CLA s 7(3)).
Transfer into a living trust attracts ABSD (Trust) at 65% from 27 Apr 2023, paid up front and refundable down to the beneficiary's rate if claimed within six months (IRAS).
A buyer from an estate deals with the executor (grant of probate, with a will) or administrator (letters of administration, intestate), who needs the grant before validly selling.
On intestacy a spouse with issue takes 1/2 and the issue share 1/2 (ISA s 7); a child's lifetime advancements are not brought into account (s 9).
A gift of registered land is complete only on registration (LTA s 45); BSD and ABSD apply on market value, and a gift within 3 years before bankruptcy can be unwound (IRDA).
On a joint tenant's death survivorship passes the interest outside the estate, regardless of any will; a tenant in common's share passes by will or intestacy.
A valid will needs a testator aged 21 or over, writing, and a signature made or acknowledged before two witnesses present together, who sign in his presence (Wills Act ss 4, 6).
Marriage revokes a will unless made in contemplation of it; divorce does not. A gift to an attesting witness or the witness's spouse is void, but the will stands.
CPF savings go to CPF nominees outside the estate; an HDB flat passes under the will or intestacy, but a beneficiary keeps it only if HDB-eligible.
The perpetuity period is 100 years or a shorter stated period for instruments from 15 Dec 2004 (CLA s 32); a life tenant can sell only an interest ending at her death.

On this page · 8 sections

Not every property transaction is a straightforward sale between two adults. A parent may want to buy for a young child, an owner may gift a flat to a relative, and every owner will eventually die — triggering questions about who inherits and how the property can be sold. This lesson covers the CEA competencies on trusts, gifts, succession and future interests, all of which regularly appear in RES scenarios and in real practice.

Legal vs beneficial ownership: the trust concept

A trust splits ownership of property into two parts. The trustee holds the legal ownership — their name is on the title — but they hold it for the benefit of someone else. The beneficiary holds the beneficial (equitable) ownership — they are the person truly entitled to enjoy the property. Property held this way is said to be held on trust.

A common reason to use a trust is that a minor (a person under 21) cannot buy land in their own name: the Civil Law Act s 35 gives 18–20-year-olds contractual capacity but not for buying or selling land (leases of up to 3 years excepted). If a parent wants a property to belong to a young child, an adult trustee holds the legal title on trust for the child until the child comes of age. (A minor can be registered as proprietor, for example on a gift or inheritance, with the minority noted on the register — Land Titles Act s 39.)

Type	How it arises	Typical use
Express trust	Deliberately created by the owner, usually in a written trust deed or will	Parent settles a property on trust for a child
Bare trust	Trustee holds property with no active duties, purely for the beneficiary who is absolutely entitled	Nominee holding title for the true owner
Resulting trust	Implied by law, e.g. where one person pays but title is put in another's name	Contributor is treated as beneficial owner

Common types of trust

Writing. A declaration of trust over land must be manifested and proved by writing signed by the person able to declare it, or by will (Civil Law Act 1909 s 7(1), current at 1 Oct 2026). Resulting, implied and constructive trusts need no writing (s 7(3)), which is why a contributor can claim a share without any document.

Secret trusts. A will may leave a flat to a friend outright, while the testator told the friend in his lifetime, and the friend agreed, to hold it for someone else. Equity enforces that fully secret trust against the friend, even though the will says nothing about it.

ABSD when property is put on trust

Buyers sometimes assume that buying "on trust" for a child avoids Additional Buyer's Stamp Duty (ABSD). It does not. Since 9 May 2022, any transfer of residential property to a trustee to hold on a living trust attracts ABSD (Trust) at the entity rate: 35% from 9 May 2022 and 65% for documents signed on or after 27 Apr 2023 (IRAS, read 1 Oct 2026). It is paid up front, because at that point there may be no beneficial owner to assess in the normal way.

A remission is given by refund where the property is held for one or more identifiable individual beneficiaries only. The refund is the difference between 65% and the ABSD rate of the beneficial owner with the highest rate, and the application must reach IRAS within six months of the instrument's execution. For a Singapore Citizen child buying her first home, that rate is 0%, so the whole 65% can come back, but only after it has been paid.

The trap

A parent tells you they will buy a condo "in trust for my 5-year-old daughter" to sidestep ABSD, since the child owns nothing. The trust does not sidestep anything. ABSD (Trust) of 65% is payable up front on the transfer to the trustee. A refund down to the daughter's own rate is possible, but only on application within six months, and the property then counts in her property count for her future purchases.

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Quick self-check · 5 questions

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Why can't a 15-year-old buy a condo in her own name, and what is the usual route?Show answer
A person under 21 cannot contract to buy land (Civil Law Act s 35). An adult trustee holds the legal title on trust, and the child is the beneficial owner. The trust must be declared in signed writing (s 7(1)).
What ABSD applies when residential property is transferred into a living trust, and can it be refunded?Show answer
65% ABSD (Trust) for documents from 27 Apr 2023 (35% from 9 May 2022), paid up front. Where beneficiaries are identifiable individuals, IRAS refunds the difference down to the highest beneficial owner's rate on application within six months.
A non-Muslim dies intestate leaving a wife and three children. How is a $1.2m share divided?Show answer
Wife $600,000; each child $200,000. Under the Intestate Succession Act s 7, the spouse takes 1/2 and the issue share the other 1/2 equally: $600,000 ÷ 3 = $200,000.
How must a will be witnessed, and does a later divorce revoke it?Show answer
Signed or acknowledged before two or more witnesses present at the same time, each signing in the testator's presence. Divorce does not revoke a will; a later marriage does, unless the will was made in contemplation of it.
A joint tenant leaves 'all my property' to his son by will. Does the son get his share of the condo?Show answer
No. By the right of survivorship, the interest passes automatically to the surviving joint tenant and falls outside the estate, so the will cannot dispose of it. Only a tenancy-in-common share passes by will or intestacy.

Common questions

Does buying a property in trust for my child avoid ABSD?: No. ABSD (Trust) is payable up front when residential property is transferred into a living trust, at 65% for documents signed on or after 27 Apr 2023 (35% from 9 May 2022). Where all the beneficiaries are identifiable individuals, IRAS refunds the difference between 65% and the highest beneficial owner's own ABSD rate, on an application made within six months of the instrument.
What is the difference between a grant of probate and letters of administration?: A grant of probate is issued where the deceased left a valid will — it confirms the executor's authority to deal with the estate. Letters of administration are granted where the person died intestate (no will), appointing an administrator to distribute the estate. A buyer purchasing from an estate should confirm the correct grant is in place before completing.
If one co-owner dies, does their share always pass under their will?: Only if they held the property as tenants in common — then their share forms part of their estate and passes by will or intestacy. If they held as joint tenants, the right of survivorship applies and the interest passes automatically to the surviving joint tenant, outside the estate, regardless of any will.

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Study material aligned to the public CEA syllabus. Not financial or legal advice — verify current figures with the relevant authority (IRAS, HDB, CEA, MAS).