Wolf Money(CPF Nomination)

 

(For those reaching CPF withdrawal age and can’t wait to get hold of your CPF fund fast, Maxwell branch is quiet)

The purpose of doing this post is to encourage CPF account holders without a nomination to do a nomination, in process saving some money. I was reminded to do my CPF nomination after I went to the CPF board to enquire about Careshield Life. My original nomination was revoked when I got married. I think now is a good time to do some legacy planning since I am probably on half life if I am lucky, it might be good to tie up the loose end on CPF fund.

The purpose of CPF nomination is for the CPF board to distribute the money in Ordinary, Special, Medisave, Retirement and CPF Life account excluding property purchased using CPF money, in accordance to the wishes of the deceased CPF account holders to the surviving family members. I was at CPF Maxwell branch to do my nomination in person, it was quite a breeze as CPF officers can do the account holders a favour by coming up with the two witnesses required for the nomination. Being an inquisitive person, I asked a ton of questions on the nomination. The customer service officer was very patience with my questions. There are a few important pointers to note on CPF nomination.

Without CPF nomination 

1.) A married deceased CPF account holder without nomination will have their CPF money transferred to the public trustee and money will be distributed in according to intestate succession law or Muslim intestate succession law where spouse and children will be given priority on claim or parents and siblings for those unmarried.

2.) CPF accounts without nomination will attract fees from the Public Trustee. Base on the table below, a $100,000 CPF administrated by Public Trustee will attract a fee of $834. If the amount is bigger, the fees will be larger. 

3.) There will be a delay in distribution of CPF money to family members for up to 9 months to a year if there is no CPF nomination made, no issue if the family had other source of funding to tie over the difficult period. If the CPF account holder is the sole breadwinner, it will be critical for the surviving members to have immediate access to the CPF money.

With CPF nomination 

1.) With nomination, the CPF Board will be administrating the CPF money in OA,SA,MA,RA and CPF Life account directly.

2.) The chief benefit is for the surviving members of the family to have access to the deceased’s CPF money when it is most needed. It takes a maximum of up to 1.5 months for CPF Board to payout the money. 

3.) The nomination allowed the CPF account holder to apportion their CPF money according to his or her wishes. For e.g, If the account holder wishes to exclude a “gambling god” (赌神) husband from the money, they could nominate their parents and children as the beneficiary, side stepping the husband.

Few important points to note

1.) Children aged 18 and below under nomination will be subjected to the rule of having the money held under Public Trustee till they reached 18 years or above.

2.) Any CPF money required the administration of the Public Trustee will involved fees which include money held on behalf of minors under 18 years.

3.) CPF Money held under Public Trustee on behalf of a minor will earn a yearly interest till the beneficiary reached 18 years.

4.) CPF nomination supersedes any will.

5.) There are no limit on the number of times a CPF account holder could resubmit a new nomination. A new nomination is required if a divorcee want to exclude her ex husband from the CPF Money. A divorce is not an automatic revocation of the current nomination. 

To have a good life is to plan for a good death. It will save the family members from the financial uncertainty and anxiety of losing a family member.

For more information, please go to Ministry of Law website or head down to any CPF branch. The friendly people at CPF Board will able to help.

https://pto.mlaw.gov.sg/deceased-cpf-estate-monies/information-for-next-of-kin-cpf-monies/

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