Source : The Sunday Times , Dec 23, 2007
Q MY PARENTS died without a will stating which of their three children would be the sole owner of their HDB flat.
Two of us are married with an HDB flat each. Our brother is the only one without a flat.
As both of us have our own HDB flats, technically, neither of us are allowed to act as the administrator of my parents’ estate as we cannot own two HDB flats.
My brother is the only one eligible to become the administrator.
1. Can the administrator hold the HDB flat as long as we want? We want to keep the flat so my brother will have a place to live.
2. Can the administrator rent out the whole flat or some rooms? And when can that be done?
3. If the flat cannot be held, what are our options? Can we sell the flat, buy each other’s shares or give up our shares?
4. We do not really want to give up our shares in the flat as we think that once our brother owns it, he can sell it.
Are there any clauses that we can insert in any legal agreement that would allow us to retain our shares if he sells the flat?
A CONTRARY to your assumptions, a person who already owns an HDB flat can still act as the administrator of an estate that consists of HDB property.
The administrator is obliged, without delay, to distribute the assets to the deceased’s spouse and children or, if he has none, to other family members.
Any transfer of ownership of the flat would be in the name of the court-appointed administrator, the person authorised to make such transfers.
In your case, where there is an HDB flat, the administrator would have to resolve the distribution of the entitlement to the flat to the three beneficiaries within six years of the date of death.
Any transfer by the administrator after six years would require court approval.
The administrator may rent out the flat to earn income for the estate, subject to prevailing HDB requirements and depending on how the distribution process is going.
While the share of entitlement to the estate where there is no will is determined by law, the beneficiaries may - if they are over 21 years old and can give valid consent - arrange a scheme of distribution that would allow one or more of them to retain ownership of the flat.
Such an arrangement would be subject to HDB regulations governing the eligibility of the parties involved for ownership.
Depending on the agreement between the beneficiaries, those who are not eligible to own or who do not wish to own the flat may realise their shares based on the value of the flat or by taking a share of the sale proceeds.
Mabel LimPartnerHarry Elias Partnership
Advice provided in this column is not meant as a substitute for comprehensive professional advice. E-mail questions to lorna@sph.com.sg
Fixed deadline
In a case where there is an HDB flat, the administrator would have to resolve the distribution of the entitlement to the flat to the three beneficiaries within six years of the date of death.
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