Many people view inheritance property as a windfall. In my point of view, this may not necessary be true. When crafting a will, you have to put in thoughts and make the effort to consider important areas like applicable taxes ABSD (Additional Buyer Stamp Duty) and SSD (Seller Stamp Duty). Otherwise, you may end up causing more harm than good to your beneficiaries.
Recently, a member wrote in to enquire about the applicable taxes on inheritance property. I thought they were very good questions because he had raised concerns on areas that I have never considered before. So, I put forward his questions to Inland Revenue Authority of Singapore (IRAS) for an official reply. This is one of the merits of being SG Wealth Builder member – the opportunity to solicit official responses from government agencies concerning important financial issues.
The reply from IRAS revealed some dark sides that may lead to potential traps for beneficiaries of an inheritance property. And there are even serious implications if you are not careful about it. Thus, I am sharing this article to raise financial awareness.
Basically everyone can craft his own will without the aid of legal advisors. There are even free digital platforms that allow people to craft their wills. Although this is the case, it is not advisable to do so because most of us are not familiar with the laws in Singapore. In life, there is no such thing as free lunch. Therefore, you should always seek legal advice from qualified lawyers to ensure that your will is made in accordance to the law.
Before proceeding, I need to clarify that I am not a lawyer by training and this article is not meant to be a form of legal advice. I am writing this article to the best of my knowledge.
Need to pay ABSD for inheritance property?
I have a question on inheritance property. Hope you might be able to shed some light.
– Assuming parent passed away and had a private property
– Property passed onto their child who owns a HDB
Does the child need to pay additional stamp duty since this is technically their second property? Look forward to your response.
Below is the reply from IRAS on applicable taxes for inheritance property:
1) Stamp Duties, including ABSD, is [This is a premium article. The rest of the content is blocked and can be accessible by SG Wealth Builder Members only. To read the full content, please sign up as member.]
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