Will Writing for HDB Owners

For most Singaporeans, their HDB flat is their largest asset - often worth $400,000 to over $1 million. Yet many don't understand how HDB ownership affects their will. Depending on how you own your flat, your will may have no effect on it at all. This guide explains what every HDB owner needs to know about estate planning.

The Critical Difference: How You Own Your Flat

HDB flats can be owned in two ways, and this single factor determines everything about how your flat passes on after death.

Joint Tenancy

This is the most common ownership structure for married couples. Key characteristics:

• Right of survivorship: When one owner dies, their share automatically passes to the surviving owner(s)
• Your will has NO effect: You cannot will your share of a joint tenancy property to anyone else
• Equal ownership: All joint tenants own the property equally (50-50 for two owners, etc.)
• No probate needed: Transfer happens automatically outside the estate

Tenancy-in-Common

This ownership structure gives each owner a distinct, separate share. Key characteristics:

• No automatic transfer: Your share does NOT automatically go to the other owner(s)
• Your will applies: You can leave your share to anyone you choose
• Unequal shares possible: Owners can hold different percentages (e.g., 60-40, 70-30)
• Probate required: Your share becomes part of your estate

Comparing the Two Ownership Types

How to Check Your Ownership Type

You can check your HDB ownership structure in several ways:

Online via My HDBPage

1. Log in to My HDBPage with Singpass
2. Click on "My Flat"
3. Select "Purchased Flat"
4. Check "Flat Details" - your ownership type will be shown under "Manner of Holding"

Via Your Title Deed

Your title deed (if you have a physical copy) states the manner of holding.

SLA INLIS

You can purchase a title search from Singapore Land Authority's INLIS service for $5.25.

Changing Your Ownership Type

You can convert between joint tenancy and tenancy-in-common, but there are implications:

Joint Tenancy → Tenancy-in-Common (Severance)

Any joint tenant can unilaterally "sever" the joint tenancy by:

• Filing a "Notice of Severance" with SLA
• This converts ownership to tenancy-in-common with equal shares
• The other joint tenant(s) don't need to agree
• Cost: Approximately $60-100 in filing fees

Tenancy-in-Common → Joint Tenancy

This requires:

• Agreement from all owners
• Equal shares (you cannot be joint tenants with unequal shares)
• A formal legal instrument registered with SLA

Why Would You Change?

To Tenancy-in-Common:

• You want your share to go to someone other than the co-owner (e.g., children from previous marriage)
• Estate planning purposes - to control who inherits your share
• To hold unequal shares reflecting different financial contributions

To Joint Tenancy:

• You want the simplest transfer to your spouse if you die first
• To avoid probate delays and costs
• You're confident you want the survivor to inherit everything

HDB Eligibility Rules for Beneficiaries

Unlike private property, HDB flats come with eligibility requirements. Your beneficiary must meet these rules to retain the flat:

Citizenship/PR Requirements

• At least one owner must be a Singapore Citizen
• For 2-room Flexi flats in non-mature estates, owner can be PR
• Non-citizens/non-PRs cannot own HDB flats

Family Nucleus Requirements

Depending on the flat type, there may be family nucleus requirements (e.g., Public Scheme requires a family nucleus).

Existing Property Ownership

Your beneficiary cannot own another HDB flat or have an interest in one (with limited exceptions).

CPF and Your HDB Flat

If you used CPF to buy your flat (as most Singaporeans do), there are important implications:

CPF Refund Upon Death

When you pass away, the CPF used to purchase the flat (plus accrued interest) must be refunded to your CPF account. This happens regardless of who inherits the flat.

Where Does the Refunded CPF Go?

• If you have a CPF nomination: Goes to your nominees
• If no nomination: Goes to your estate (distributed by will or intestate rules)

This Can Create Problems

Consider this scenario:

• Mr. Tan owns an HDB flat worth $500,000 as tenants-in-common with his wife (50-50)
• He used $200,000 from CPF to pay for his share
• He leaves his share of the flat to his son in his will
• When Mr. Tan dies, his $200,000 CPF must be refunded
• If the son (who inherits the flat share) doesn't have funds to refund the CPF, the flat may need to be sold

Outstanding HDB Loan

If there's an outstanding HDB loan:

HDB Loan Insurance (Home Protection Scheme)

Most HDB owners have HPS coverage, which pays off the outstanding loan upon death. Check if your policy is current.

Bank Loan

If you have a bank loan instead of HDB loan, check your Mortgage Reducing Term Assurance (MRTA) coverage.

No Insurance?

If there's no insurance coverage, the loan must be repaid from the estate or by the beneficiary. Plan for this in your will.

Practical Scenarios

Scenario 1: Married Couple, Joint Tenancy

Situation: Mr. and Mrs. Lee own their HDB as joint tenants. Mr. Lee wants to ensure his children from his first marriage receive something.

Solution:

• The HDB will automatically go to Mrs. Lee - the will cannot change this
• Mr. Lee should ensure other assets (savings, investments, insurance) are left to his children
• Alternatively, consider severing the joint tenancy (but discuss with spouse first)

Scenario 2: Siblings Owning Together

Situation: Two unmarried siblings bought an HDB together as tenants-in-common (50-50). One sibling wants their share to go to a nephew, not the other sibling.

Solution:

• As tenants-in-common, each sibling can will their share to anyone
• Important: Ensure the nephew meets HDB eligibility requirements
• If nephew doesn't qualify, he may need to sell within the stipulated period

Scenario 3: Sole Owner

Situation: Mrs. Wong is a widow and sole owner of her HDB. She wants to leave it to her three children equally.

Solution:

• Her will can specify the flat goes to her three children equally
• Children will need to decide: one buys out others, or sell and split proceeds
• Consider specifying which option in the will to avoid disputes
• At least one child must meet HDB eligibility to retain the flat

Will Writing Tips for HDB Owners

1. Know Your Ownership Type First

Check before you write your will. If you're a joint tenant, don't include the HDB in your will - it creates confusion even though it has no legal effect.

2. Be Specific About the Flat

Include the full address: "Block 123 Ang Mo Kio Avenue 4, #05-678, Singapore 560123"

3. Consider the CPF Refund

Ensure there are funds available to refund CPF, or acknowledge the flat may need to be sold.

4. Name Eligible Beneficiaries

If possible, leave the flat to someone who meets HDB eligibility. Otherwise, acknowledge they may need to sell.

5. Plan for Multiple Beneficiaries

If leaving to multiple people, specify how disagreements should be resolved (e.g., "if they cannot agree within 6 months, the flat shall be sold and proceeds divided equally").

6. Don't Forget the CPF Nomination

Your will doesn't cover CPF. Make a separate CPF nomination to ensure your CPF (including the refunded housing amount) goes where you want.

Summary Checklist for HDB Owners

• ☐ Check your HDB ownership type (joint tenancy or tenants-in-common)
• ☐ Understand whether your will affects your flat
• ☐ Verify your beneficiaries meet HDB eligibility requirements
• ☐ Account for CPF refund requirements
• ☐ Check your HDB loan insurance (HPS) coverage
• ☐ Make a CPF nomination (separate from your will)
• ☐ Include clear instructions in your will
• ☐ Review and update when circumstances change