When purchasing property with a partner in Singapore, choosing the right ownership structure is crucial. The main options are Joint Tenancy, Tenancy in Common, and Holding Property in a Trust. Each has distinct implications for ownership rights, inheritance, and financial planning.
Joint Tenancy – The ‘What’s Mine is Yours’ Approach
Joint Tenancy is commonly chosen by married couples due to its simplicity and the right of survivorship. This means that upon the death of one owner, their share automatically passes to the surviving owner, bypassing probate. All owners have equal shares and rights to the property.
Pros:
- Automatic transfer of ownership to the surviving owner.
- Simplifies the inheritance process.
Cons:
- Lack of flexibility in distributing shares to others.
- Not suitable for co-owners who wish to have distinct shares or estate plans.
Tenancy in Common – Flexibility in Ownership
Tenancy in Common allows multiple owners to hold unequal shares in a property. Each owner’s share can be sold, transferred, or bequeathed independently. This structure is often used by friends, business partners, or unmarried couples.
Pros:
- Flexibility in ownership percentages.
- Each owner’s share can be included in their will.
Cons:
- Upon death, the deceased’s share goes through probate.
- Potential for disputes among owners regarding property decisions.
Holding Property in a Trust – Structured Estate Planning
Placing property in a trust involves transferring ownership to a trustee who manages it for the benefit of beneficiaries. This method is often used for estate planning, asset protection, or managing property for minors.
Pros:
- Avoids probate, ensuring a smoother transfer to beneficiaries.
- Provides control over how and when assets are distributed.
Cons:
- Setting up a trust can be complex and may incur additional costs.
- Requires careful planning and legal advice to establish correctly.
Making the Right Choice
Selecting the appropriate ownership structure depends on your relationship with co-owners, financial goals, and estate planning needs. It’s essential to consult with legal and financial professionals to understand the implications of each option fully.
Ready to Buy Property but Unsure About Ownership Options?
Let HHG Agents guide you every step of the way — from finding the right home to choosing the best ownership structure for your needs.
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