The 5 Pillars of Life

As I was helping with my client’s death claim recently, I got to recap on some of the issues arising from CPF monies on death. I was surprised that many people had so many different versions on how CPF monies are distributed upon death. The common misconceptions are: CPF monies will only transfer to beneficiaries CPF accounts, Medisave monies cannot be withdrawn, CPF monies goes back to government, CPF monies are equally shared between Parents and Spouse regardless with Children or not…

If valid CPF Nomination was made prior death
* CPF Board will invite the beneficiaries to come forward to file a Claim. Monies need not go to Public Trustee…
The following will be distributed to your nominees in the proportion as stated in your nomination upon your death:
(a) Savings in the Ordinary, Special, Medisave and Retirement Accounts;
(b) Discounted SingTel (ST) shares.

The following are not covered by CPF Nomination and will form part of the deceased estate:
(a) Cash and investments held in the CPF Investment Account under the CPF Investment Scheme-Ordinary Account  (CPFIS-OA);
(b) Investments held under CPF Investment Scheme-Special Account (CPFIS-SA);
(c) Properties bought with CPF savings; and
(d) Dependants’ Protection Scheme (DPS) claim proceeds

When CPF Nomination was not made
* The CPF savings will be paid to the Public Trustee in accordance to Section 25 of the CPF Act (Cap 36) for distribution to the family according to the intestacy laws(Interstate Succession Act Cap 146) upon demise.
* If deceased is a Muslim, then the CPF monies will be distributed in accordance to the Administration of the Muslim Law Act (Cap. 3)
* Even if the deceased made a Valid Will, this money will still be distributed according to the Intestacy Law.
* If deceased nominated a minor as beneficiary, the Public Trustee will hold the money in trust till minor reaches 18 years old.
* If deceased did not make a nomination and a minor is given a share as per the intestacy law, the Public Trustee will hold the money in trust till minor reaches 21 years old.
* When the Public Trustee is holding to the minor’s monies in trust, the parents or legal guardian have to make applications for monthly maintenance or education use.

Its good to make your CPF nomination
* You can freely nominate your CPF monies as per what you really desire. This is especially so if you have aged parents and that you are married with Children now.
* This will reduce the hassle that monies goes to Public Trustee and subjected to the instestacy and minor’s share to be held till 21 years old.
* You can decide if you prefer to nominate Adults or Minors. If beneficiaries are all adults, the monies need not be held in trust till minor reaches 18 years old and we need not apply for monthly maintenance which we are not sure how easily the applications can be approved.

Points to note about making CPF nominations
1) A marriage will automatically revoke an earlier nomination.
2) A divorce does not revoke an earlier nomination.
3) A Will does not supersede an earlier nomination.
4) If your nominee is below the age of 18 years at the time of payment, his/her share will be forwarded to the Public Trustee for administration until he/she reaches 18 years of age.
5) If any of your nominees is an undischarged bankrupt at the time your CPF savings are paid out, the Board will be legally obliged to inform the Official Assignee (OA) of any assets that are due to him as his estate is vested in the OA by virtue of the laws in Singapore relating to bankruptcy.

Act Now
Well. What are you waiting for? Download the forms from CPF Website. Fill up the form properly, sign in the presences of 2 valid witnesses and send to CPF office. Its actually a 10 minutes job.