Purchase Money Trust Deed Template for Singapore

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Key Requirements PROMPT example:

Purchase Money Trust Deed

"I need a Purchase Money Trust Deed for a Singapore property purchase where my father is providing the purchase money of SGD 2.5 million, but I want the property held in trust for my tHRee children as beneficiaries, with ABC Trust Company as the professional trustee."

What is a Purchase Money Trust Deed?

A Purchase Money Trust Deed is utilized when a party provides funds for property acquisition but wishes to have the property held in trust. This arrangement is common in Singapore for family property holdings, business arrangements, and asset protection strategies. The deed details the trust's terms, trustee powers, beneficiary rights, and property management requirements under Singapore law. It must comply with strict local trust and property regulations, including requirements for proper execution, registration, and stamp duty payment. The document is particularly relevant when there's a need to separate legal and beneficial ownership of property acquired tHRough specific purchase funds.

What sections should be included in a Purchase Money Trust Deed?

1. Parties: Identifies the Grantor, Trustee, and Beneficiary

2. Background: States the context and purpose of the trust deed

3. Definitions: Defines key terms used tHRoughout the document

4. Declaration of Trust: Formal creation of the trust and specification of trust property

5. Powers of Trustee: Outlines the authority and responsibilities of the trustee

6. Trust Terms: Specifies conditions, duration, and purpose of the trust

7. Governing Law: Specifies Singapore law as governing law

8. Execution: Signature blocks and attestation

What sections are optional to include in a Purchase Money Trust Deed?

1. Successor Trustee Provisions: Used when providing for replacement trustees in cases where continuity planning is required

2. Trust Protection Mechanisms: Additional safeguards for trust assets, recommended for high-value trusts or complex arrangements

3. Tax Provisions: Specific tax treatment instructions when tax optimization is a key consideration

What schedules should be included in a Purchase Money Trust Deed?

1. Schedule 1 - Property Description: Detailed description of trust property and title information

2. Schedule 2 - Purchase Money Details: Details of purchase price, payment terms, and source of funds

3. Schedule 3 - Trustee Remuneration: Details of trustee compensation if applicable

4. Appendix A - Property Documents: Copies of relevant property documentation

Authors

Alex Denne

Head of Growth (Open Source Law) @ Genie AI | 3 x UCL-Certified in Contract Law & Drafting | 4+ Years Managing 1M+ Legal Documents | Serial Founder & Legal AI Author

Clauses
Industries

Trustees Act (Chapter 337): Primary legislation governing trusts in Singapore that establishes trustee duties, powers, and responsibilities. Essential for defining the trust relationship and obligations in a Purchase Money Trust Deed.

Conveyancing and Law of Property Act (Chapter 61): Fundamental legislation that regulates property transactions and transfer of interests in land in Singapore. Critical for the property transfer aspects of the trust deed.

Land Titles Act (Chapter 157): Governs registered land transactions and implements the Torrens system in Singapore. Essential for ensuring proper registration and title transfer procedures.

Stamp Duties Act (Chapter 312): Regulates stamp duty obligations on property transactions in Singapore. Important for compliance with tax requirements in property transfers.

Property Tax Act (Chapter 254): SecoNDAry legislation governing property taxation matters that may affect the trust arrangement and property holding.

Misuse of Drugs Act (Chapter 185): Contains provisions related to forfeiture of property, which may affect trust property rights and need consideration in the deed drafting.

Bankruptcy Act (Chapter 20): Contains provisions affecting property rights in bankruptcy situations, relevant for protecting the trust property.

Personal Data Protection Act 2012: Governs the handling and protection of personal information that may be included in the trust deed.

MAS Guidelines: Regulatory guidelines from the Monetary Authority of Singapore that may affect trust arrangements and property transactions.

Singapore Law Society Practice Directions: Professional guidelines for legal practitioners in Singapore affecting the preparation and execution of trust deeds.

Singapore Land Authority Requirements: Specific requirements from the land authority regarding property transactions and registration of interests in land.

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