Have you ever wondered?
CPF savings do not form part of your estate and are not covered by a Will. This is the rule of wealth transfer for CPF monies when one deceased.
There are 3 types of nomination.
- Cash Nomination – Your nominees will receive the CPF savings due to them in cash via cheque or GIRO. Cash nomination is the default unless you specifically opt for one of the other two types.
- Enhanced Nomination Scheme (ENS) Nomination – Your nominees will receive the CPF savings due to them in their CPF accounts.
- Special Needs Savings Scheme (SNSS) Nomination – Parents can nominate their children with special needs to receive the CPF savings due to them on a monthly basis.
What if you don’t make any CPF nomination?
CPF monies (balances left in a deceased member's Ordinary, Medisave and Special/Retirement Accounts) do not form part of the estate and are not covered by a Will.
If you don't make a CPF nomination, the money will be distributed via intestacy laws. It will take time to locate the legally-entitled beneficiaries, and a fee will be payable to the Public Trustee's Office to make the distribution.
You should make a CPF nomination if you want your CPF savings to be distributed according to your wishes.
You may nominate any person or organisation to the beneficiary of your CPF monies. However, you must be 16 years and above, and of sound mind to make a CPF nomination.
You can refer to this guide
Chew Hock Beng is a Certified Financial Planner, Chartered Financial Consultant, Chartered Life Underwriter & Chartered Family Office Specialist. He has community involvement experience and has held appointments like Honorary Treasurer & Exam Board Chair with Financial Planning Association of Singapore (FPAS), Education Sub-committee with IFPAS, PSG Chairman. Hock Beng is a certified IBF instructor with Financial Perspectives and an Adjunct Trainer with Falco Academy. Currently he is managing a team of independent financial adviser representatives, providing training, mentoring & coaching.