Be very careful when using a trust to buy a home for a minor

IN a column in The Level Ground earlier this year, I wondered if there may be measures taken to curtail the buying of homes in the name of minors who are Singapore citizens.

Parents using trusts to buy private homes for their children, who are under the age of 21 and are citizens, can get round the paying of additional buyer’s stamp duty (ABSD) as long as the home is the first to be held in the name of the child.

Purchasing homes in trust for children can make financial sense, as the said homes can be used to generate rental income and potentially enjoy capital appreciation.