In Singapore, whether your children can inherit and subsequently keep the HDB flat depends on a couple of factors:
- Are you holding it in the form of joint tenancy or tenancy-in-common?
- Do you have a will or estate plan?
- Are you a Muslim?
If your HDB flat is held as a joint tenancy with your wife, the right of survivorship will apply. This means that the wife will take the husband’s share automatically. The right of survivorship supersedes a will.
If you own the HDB flat is with your wife as tenants in common, your stake in the property will be distributed based on your will or the intestacy law (a set of distribution rules predetermined by the law) if you don't have a will. Your children can inherit your HDB if you have a will and has designated them as beneficiaries in your will.
If you are a Muslim, estate distribution will follow a different set of inheritance rules called the Faraid.
If your children are entitled to shares of the HDB flat after you passed away either by way of the will or by distribution under intestacy law, here are a few things to consider to determine if they can keep the inherited HDB flat:
1. Are they eligible to keep the inherited HDB flat.
For example, foreigners cannot own HDB flats, and thus, the beneficiary entitled to the flat must sell it, whether he/she has a private property or not.
2. If they are eligible to keep the HDB flat and it was bought before 30 August 2010, they may be able to keep both the private property and the HDB flat. If not, they will have to sell either the private property or their stake in the HDB.
Please note that if your “children” are underage or already hold an HDB, there will be complications.
If you are a Muslim, estate distribution will follow a different set of inheritance rules called the Faraid.
Read more: What Happens To My Stuff When I Die? (Singapore Edition), All About Probate & Administration (Singapore Edition), Immortalize x PropertyGuru Articles, How Does Muslim Inheritance Work in Singapore?