my mother in law intend to transfer the name of a low cost apartment to my wife which will be my wife 2nd property, her mother claim that she is old and do not want the hassle of transferring the name when anything happen. However, she wish that the property to be distributed fairly among her 5 children.
is there any consequent of this action, like tax, entitlement to subsidy etc?

This post has been edited by gedebe: Jun 19 2024, 03:29 PM

once transferred to your wife, it belongs to your wife.
anything else is talk only and depends on the grace of your wife.

tax? assessment tax (cukai pintu) and quit rent tax (cukai petak)

subsidy? since already got property under her name, dont think so.

transfer from pama to their children can be done free at land office (i think they call it penyaksian something like that)

Can be done easily with minimum fees, transfer before or after demised?

Tax - After the completion of transfer - within the next 5 years, if your wife decided to liquidate / sell the unit. If the selling price is > than the valuation during the transfer time, she will be subjected to RGPT % accordingly. If sell after 6th year, should not have any RGPT.

Subsidy - no. Rumah WIP or Selangorku only applicable for the 1st house ownership. For the bank loan, as long as it is the 2nd property you need the financing, you should be able to get up to 90% margin of financing. The fully paid unit are not considered.

Managing the unit will be time consuming - collecting rental, pay maintenance, pay assessment tax , PTG, repair etc.

i will chip in my 2 cents here, if the purpose is to split/disty into 5 ppl, then:-

1. your mum-in-law should just sell the apartment (her kids/your wive can assist her in liquidating the unit while she is still around)
2. then split the money FAIRLY among HER 5 children
3. no one can then argue who got more or who is the favorite etc. Too many times a family end up fighting because of these petty matters, just not worth it.

That only works provided she herself (or anyone for that matter) is currently NOT staying in the said apartment.

I bet her mom is still alive so they don't wanna sell it first.

where is the low cost apartment? KL or Selangor?

if Selangor, then your wife need to satisfy the conditions of receiving a low cost apartment.

if transfer to your wife, then the property belong to your wife (she can sapu all and not divide to her other 4 sibling)

if the intention is to distribute fairly, then just put it in a will for the executor to have the power to sell the property and proceeds distributed to all 5 children. Why don't transfer name to beneficiary? because
1. i doubt all 5 children fit the profile to be entitled to own a low cost apartment
2. when want to sell, all 5 need to agree to sell & sign docs. if 1 dont agree also cant do anything.

yes

Tq