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When a Father Tried to Reclaim a $1.5m Condo Given to Son

A man in Singapore is suing his ex-wife and son over a $1.5 million condominium, alleging that the purchase was done under a "sham" arrangement aimed at evading taxes. The condo was bought in 2015 by the couple for their son, who was under 21 and unable to hold the property in his name. The condo was bought using a trust, with the parents as the trustees. This allowed them to avoid paying the Additional Buyer's Stamp Duty (ABSD) that was applicable for the purchase of a second property.
 
However, after the couple's marriage broke down in 2020, the man made claims that there had been no intention to give the condo to his son, and that the trust arrangement was solely a plan to evade paying the additional buyers stamp duty (ABSD) tax. The court, however, found that the trust was not created for the purpose of evading taxes. Factors such as the man's education and intelligence, the wrong tax amount cited in his evidence, and the couple's discussions prior to the divorce about setting aside funds for their children's needs, all indicated that the trust was created for the benefit of their son and not for evading taxes.
  trust framework
It is important to note that trusts can be a legal and effective means of estate planning and asset protection, but they should not be used to evade taxes or abuse the legal system. When considering property investment, it is crucial to follow the rules and regulations and seek professional assistance when needed. For further assistance and guidance, please do not hesitate to contact us.

For original full article please refer to Straits Times website.
Source: Straits Times © SPH Media Limited. Permission required for reproduction.
Article Date: 15 Jan 2023
Author: Tan Ooi Boon

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