CPF OA

henrylbh

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Ain't you going out to space just to say something out of this world?
 

Dividends Warrior

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After reading through this thread, I am a little confused.

Is TS suggesting that he use his CPF OA to buy his mother's flat, then ask his mom to transfer the money back to him in private? If that's the case, why would the mom accept such an arrangement!?

If I am a parent and my child told me this deal, I would check his temperature! :s13:
 

dork32

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i did something like that to my mom, though not exactly.

there is trust between myself and my mom. she continues to come into the property as she like it. there is no difference in her lifestyle. i do not sabo my own mother.
 

dork32

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if there is complete trust and both parties honor their part of the deal, there is no problem.

if there is a clear distinct line between the mom and the kid, or you have other siblings then this may not be possible.
 

cheongmanz

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i did something like that to my mom, though not exactly.

there is trust between myself and my mom. she continues to come into the property as she like it. there is no difference in her lifestyle. i do not sabo my own mother.

What did you do?
 

dork32

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i shared a condo with my mom. she was the major shareholder.

i took her name out of the condo and bought a hdb for her.

if we are separate entities, by doing so, mom lost 400k in assets when she did the switch.

if we are one, we moved from owning one condo to (one condo + 1 hdb). now we get extra revenue each month because we are renting out the rooms of the hdb.
 

dork32

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the garmen is also very happy, coz i paid quite a lot in stamp duties doing this transfer
 

dork32

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Is TS suggesting that he use his CPF OA to buy his mother's flat, then ask his mom to transfer the money back to him in private? If that's the case, why would the mom accept such an arrangement!?

if the mom trust the son, there is actually no difference for her in terms of lifestyle

she continues to occupy her flat. she continues to live without the 350k that used to be locked up in her home. there are no changes at all provided the son do not kick the mom out.
 

wisely98

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After reading through this thread, I am a little confused.

Is TS suggesting that he use his CPF OA to buy his mother's flat, then ask his mom to transfer the money back to him in private? If that's the case, why would the mom accept such an arrangement!?

If I am a parent and my child told me this deal, I would check his temperature! :s13:

Just to clarify, mom determine $x for the flat. This is $y lower than current market price. Reason being flat is a few decades old now and she probably wishes to stay for XX more years here and decides $y is a discount in house value after XX years. Now, either the transfer is done at $x, which i'm not sure it will go (as some of you have pointed out, on seller's mental competency, etc) or $x+$y (i.e market price), which i may get $y out of my CPF.

Of course, my hypothetical example for discussion is: if mom doesn't want a single cent, does that mean i can get $x+$y out?
 

BBCWatcher

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Please note that in this scenario the elder parent assumes the significant risk that his/her child's assets will be forfeited in a creditor claim or other court judgment. The child's assets then include the home the parent lives in.

CPF assets are well protected against creditors and court judgments. So are separately titled assets.

If a child has so utterly mismanaged his/her financial affairs that this maneuver would be attempted, then I would rate the odds of subsequent disaster (a creditor seeking recourse or another adverse court judgment) to be quite substantial.

Dork32's scenario is different. In that case, a parent "traded down" but ended up with sole, clear title to a fully paid up (I assume) primary residence.
 

cheongmanz

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Of course, my hypothetical example for discussion is: if mom doesn't want a single cent, does that mean i can get $x+$y out?

This is something that confuses me. Why your mom doesn't want a single cent after selling her flat to you? Unless you are saying that your mom is going to depend on you to look after her which I believe most parents do when they entrust their money to their offspring.
 

Sinkie

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This is something that confuses me. Why your mom doesn't want a single cent after selling her flat to you? Unless you are saying that your mom is going to depend on you to look after her which I believe most parents do when they entrust their money to their offspring.

Anyway I think this thread it’s for discussion la
 

dork32

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Dork32's scenario is different. In that case, a parent "traded down" but ended up with sole, clear title to a fully paid up (I assume) primary residence.

the moral of the story is my mom "lost" 400k in this transaction. it is same as wiseguy's mom "losing" 350k in the transaction
 

dork32

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This is something that confuses me. Why your mom doesn't want a single cent after selling her flat to you? Unless you are saying that your mom is going to depend on you to look after her which I believe most parents do when they entrust their money to their offspring.

some of these older people do not need money at all.

afterall, if wiseguy did nothing, mom would not get any money as well.
 

henrylbh

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Just to clarify, mom determine $x for the flat. This is $y lower than current market price. Reason being flat is a few decades old now and she probably wishes to stay for XX more years here and decides $y is a discount in house value after XX years.

So it's like a sale and lease back? And it's assumed the discount of $y is her or your personal discretion for God knows how many years she is going to or allowed to stay there :s13:

That's her liberty to transfer/sell even at zero value, as long as her CPF plus accrued interest are returned to her CPF.

Now, either the transfer is done at $x, which i'm not sure it will go (as some of you have pointed out, on seller's mental competency, etc) or $x+$y (i.e market price), which i may get $y out of my CPF.

Since it's a related party transaction, unlikely HDB would interfere in the pricing as long as you and her meet the conditions of transfer and she is lucid in front of HDB officers :s13:

Of course, my hypothetical example for discussion is: if mom doesn't want a single cent, does that mean i can get $x+$y out?

IF mom doesn't want a single cent, she is prima facie not lucid :s13:

For love, mom will explicitly agree to anything for the sake of her only child, even though in the back of her mind she certainly holds anxiety even in her sleep till she uplorry :s13:

Why place mom in such a situation?
 

henrylbh

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I know of a mother who favoured her youngest son so much that she willingly let go her joint ownership with the son and let the son use to money to buy a bto flat with his wife.

She ended up staying with another married son who supports her without help from the brother. She never stayed in the new BTO, and for whatever transpired, she isn't ........
 

cheongmanz

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I think it is pretty obvious that if the mom is willing to give all her money from sale of flat to her son, it is not against the law. It is her money after all.
 

henrylbh

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I think it is pretty obvious that if the mom is willing to give all her money from sale of flat to her son, it is not against the law. It is her money after all.

Why would the law interfere when there is no complain?

What is money to mother when most mothers willing even to give up their lives for their children, though not the other way round :)
 
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