Integrating Your HDB with Your Estate Plan: A Step-by-Step Guide

June 6, 2025

Estate planning might sound like something only the wealthy need to worry about, but if you're a Housing Development Board (HDB) flat owner in Singapore, it's something you should think about too. 

Whether you’ve fully paid off your flat or are still chipping away at a mortgage, having a plan in place can ensure that your loved ones are taken care of and that your wishes are respected. 

Here’s a straightforward guide to help you seamlessly integrate your HDB flat into your estate planning, featuring easy checklists and tips.

1. Understand the Nature of Your HDB Ownership 

First things first, let’s clarify how you own your HDB flat. 

🤝 Ownership Type

Are you a joint tenant or a tenant-in-common? This distinction is crucial because it affects how your share of the property can be handled after you pass away.

💰 Mortgage Status

Is your flat fully paid for, or is there a remaining mortgage?

🚫 Legal Restrictions

Are there any standing obligations and restrictions like the Minimum Occupation Period or Ethnic Integration Policy?

2. Determine Your Estate Planning Objectives 

Think about what you want to happen to your flat when you’re no longer here. Your goals will significantly influence the planning process.

🤔 Who should inherit your HDB flat?

🤔 Is ensuring long-term housing for your family a priority?

🤔 Do you need to balance asset distribution among your children?

3. Review Your CPF Nomination 

CPF savings used to purchase the property need not be returned to the deceased member’s CPF account. If the property is held under tenancy-in-common, it becomes part of the estate. If it’s held under joint tenancy, ownership will automatically pass to the surviving co-owner(s).

Still, make sure your CPF nomination is updated to reflect your current wishes, as these funds are distributed separately from your will.

💡Tip Regularly update your CPF nomination after major life events like marriage or the birth of a child.

4. Use the Right Legal Tools 

Based on your ownership type, different legal tools will come into play.

If your flat is owned as a Sole Owner or Tenancy-in-Common, you can specify in your will who will inherit your portion. If no will exists, the share will be divided according to the Intestate Succession Act. Legal authorisation to manage the deceased’s estate must be obtained through a court order.

However, if it’s under Joint Tenancy, the surviving owners automatically inherit your share, bypassing the will entirely. These remaining owners must submit a Notice of Death to the Singapore Land Authority (SLA) to formalise this transfer.

💡Tip If you want more control, consider converting the joint tenancy into a tenancy-in-common.

5. Appoint a Lasting Power of Attorney (LPA) 

An LPA is crucial as it authorises someone you trust to manage your affairs, including your HDB flat (rent/sell), if you lose mental capacity. 

This is particularly important for those who:

👤 Are sole owners

🏠 Are living alone

💊 Have health issues 

👴🏻 Are elderly

6. Plan for Outstanding Loans or Liabilities 

Make sure any outstanding mortgage on your HDB flat is covered by the Home Protection Scheme (HPS) or other insurance plans. 

If not, set up contingency funds or additional insurance to cover loans to avoid burdening your beneficiaries with outstanding debt. 

7. Keep Beneficiaries Informed 

Transparent communication can prevent disputes among your loved ones. 

⚖️ Explain your decisions, especially if the distribution isn’t equal

🎯 Share what you intend for the property

💰 Clarify instructions for property handling, such as retention, sale, or splitting profits

8. Regularly Review Your Plan 

Keep your estate plan current. Regular reviews will help ensure your estate plan still reflects your current situation and wishes.

• Update your plan when life or family circumstances change:

💍 Marriage

💔 Divorce

🪦 Death

📉 Personal health changes

• Revisit ownership structure if you refinance or make major changes to the HDB

• Review legal documents such as your Will and LPA to ensure they remain valid and relevant

9. Consult Professionals 

Estate planning can get complex, so it’s wise to consult professionals for your peace of mind.  They can provide valuable advice and ensure your plans are legally sound and feasible.

Engage an estate planner or lawyer for structured planning and legal compliance.

Consult a property agent or lawyer if considering changes in property ownership or sale.

Estate Planning Scenario

“I have one HDB flat and three children. What options do I have in terms of including my HDB flat in my estate plan?”

Option A

Sell and divide proceeds equally among children

👍🏻 A simple and straightforward process that promotes equality

🧐 Consider loss of long-term rental income and sentimental value

Option B

Include a general clause in your Will, allowing the HDB to go to the child who already owns a private property. Balance other assets among remaining children (e.g. insurance payouts). The child who owns private property can legally retain* the property but cannot rent it out.

👍🏻 Maximises utility of the HDB

👍🏻 Preserves the income-generating property benefits within the family

👍🏻 Ensures smoother compliance with HDB ownership rules

👍🏻 Maintains fair asset distribution among children

*There are certain conditions to retaining a HDB if you currently own a private property:

1. Beneficiary must be eligible to own a HDB flat
2. Beneficiary must live in the HDB flat (i.e. sell or rent out private property). Beneficiary can retain both properties if the HDB was purchased before 30th August 2010. If the HDB was purchased after 30th August 2010, Beneficiary can only retain ONE property.

Conclusion

Properly planning the future of your HDB flat ensures that your legacy is preserved and your family’s needs are met. 

We hope this guide helps you approach estate planning for your HDB with more clarity and confidence.

Reference

1. Retain Flat Following Life Events

The views expressed in this media do not necessarily reflect the views of PFPFA Pte Ltd (“PFPFA”). The information provided herein is intended for general circulation and not intended for distribution to, or use by, any person or entity in any jurisdiction or country where such distribution or use will be contrary to local laws or regulation. You should also note that the information presented does not have regard to the specific investment objectives, financial situation or the particular needs of any specific individuals; and therefore, may not be appropriate to your individual needs. You should seek the advice of your financial adviser representative or a professional before making any commitment to purchase or invest in any investment product.

Estate planning services is provided by PFP Legacy Singapore, a sister company of PFPFA Pte Ltd. Estate planning and/or will-writing services are non-financial advisory services and thus are not regulated under the Financial Advisers Act.