Sunday, November 16, 2008

Passing my property to grandsons


Source : Sunday Times - 16 Nov 2008


Q I would like my two grandsons, aged two and five, to inherit my condominium unit upon my death. I do not wish to let my daughter hold the property in trust for them until they are of legal age because I have my fears that the property may not be passed eventually to the two boys. Also, the annual fees of entrusting the property to a trustee company until the boys are of legal age are too expensive.
I will write a will appointing my siblings as trustees of my estate.
However, like me, they are all in their 60s. It will be another 19 years before my second grandson reaches 21. By then, we will be in our 80s. We may not even live until that age. What should I do?
A You have already stated all the possible solutions.
Assuming you have appointed your daughter to hold the property in trust for your two grandsons, under the law, she will have to transfer the property over to them when they turn 21.
Failing to do so will constitute a breach of trust and your two grandsons will have legal recourse against her in law. You should inform as many people as you can about the trust so that the two boys will know about its existence when they grow up.
Assuming you have appointed your siblings to be the trustees and you passed away before them, your siblings then become the trustees under your will. It is important that your siblings have their own wills as their trustees will continue to be trustees for your grandsons when they themselves pass away.
The final alternative is to appoint a trust company. There are now many trust companies in Singapore and they are closely regulated by the Monetary Authority of Singapore. You should ask around as their rates are now quite competitive.
Ang Kim LanGoodwins Law Corporation
Advice provided in this column is not meant as a substitute for comprehensive professional advice.

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