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Bought too many homes: Cash-strapped dad sold his kids’ $2.4m trust properties
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This case provides compelling lessons on the risks of over-leveraging in properties.
ST ILLUSTRATION: CEL GULAPA
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- A father faced financial strain after buying two properties worth $2.4 million in trust for his children and sought court approval to sell them.
- The High Court approved the sale, mandating that the proceeds be deposited into trust accounts solely for the children's benefit, ensuring proper management.
- Since May 2022, trustees buying residential properties must pay a hefty ABSD, now 65 per cent, refundable only if the trust genuinely benefits the children, preventing ABSD avoidance.
AI generated
SINGAPORE - A man bought two properties totalling $2.4 million that were held in trust for his two young children but found himself in a bind a few years later when he could not keep up with the mortgage payments.
So he had to apply for a High Court order to sell the apartments. The court eventually approved the sale but instructed him to deposit the proceeds in trust accounts that would benefit his kids only.
