Let HDB flats be part of special needs trust

Let HDB flats be part of special needs trust

SINGAPORE - As a parent of a special needs child, I am happy to see that the Government is helping to pay the fees for setting up a Special Needs Trust Company (SNTC) trust account ("Govt subsidy for trusts for special needs kids"; June 14).

I understand that currently, the SNTC accepts only cash into the trusts. This may be the reason why the take-up rate is so low. Most Singaporeans are asset-rich but cash-poor.

As most families own their HDB flats, perhaps the SNTC and the HDB can work out the legal requirements so that parents can put their flats into the trusts after they die.

The SNTC can then manage the rental of the flat to give the beneficiary a life-long stream of income.

Given the inflationary environment we are in, it does not make economic sense to force parents to sell their flats in order to raise cash for the trust.

Granted, it will be more costly to manage an asset such as a flat compared to cash.

Perhaps it is possible to charge a small fee for providing the extra service.

John Yeo

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