Wills & CPF - How does CPF fit in my Estate Plan

Can CPF be included in my Will?

The short answer is No.

However, there are several technical exceptions.

Under the Central Provident Fund (CPF) Act, CPF monies do not form part of your estate. Since a Will governs how to distribute your estate (which consists of all your assets, and your debts), CPF therefore, cannot be included in your Will.

While CPF savings cannot be distributed through a Will, making a CPF Nomination ensures that your savings are dispersed according to your wishes upon your demise. By making nominations for your CPF savings, you can streamline the distribution process and avoid unnecessary administrative delays and fees. Essentially, the individuals you nominate will receive your CPF monies directly, safeguarding your loved ones’ financial future in alignment with your intentions. Therefore, integrating CPF nominations into your estate planning strategy is crucial for managing your assets effectively in Singapore.

Are there any exceptions when it comes to CPF being included in my Will?

CPF investments and properties purchased with CPF funds (excluding discounted Singtel Shares) are considered part of your estate and can be distributed through doing your own Will. Integrating these assets into your broader financial strategy is crucial for estate planning in Singapore. By doing so, you have the opportunity to grow your retirement fund over time and provide for your beneficiaries. It’s important to regularly review and adjust your investment portfolio to align with your changing financial goals and risk tolerance levels. While CPF investment accounts cannot be nominated, as they are part of your estate, they are subject to distribution under a Will or Intestacy Laws in Singapore.

• CPF investments and properties that can be included in your Will include the following::

• Properties bought under your CPF savings.

• Investments made under the CPF Investment Scheme-Ordinary Account (CPFIS-OA) and CPF Investment Scheme-Special Account (CPFIS-SA) schemes.

  If you want to control how your CPF monies are distributed, you have to make a CPF nomination.

• The CPF nominations will cover the following:

• The CPF monies in your Ordinary, Special, Medisave and Retirement Accounts

• Unused CPF Life Premiums

• Discounted SingTel Shares

[Please note that payouts from the Dependants’ Protection Scheme (DPS) is not included in your estate, nor is it included in your CPF nomination. They will be administered directly by the insurer.]

What is a CPF nomination?

A CPF nomination is a way to specify the people who should receive your CPF monies upon your passing. The nomination covers all monies in your CPF except for properties and investments bought with CPF monies, of which we mentioned above**.**

You may make a CPF nomination in two ways:

Online or In-person.

Either way, you will need to get 2 witnesses to complete the nomination process. You may ask anyone including your friends or relatives to act as your witnesses so long as they are:

• at least 21 years old
• have sound mental capacity
• are not your nominees

[Please note that if you do decide to make an online nomination, you will only be able to select up to 8 nominees. If you intend to have more than 8 nominees, you will have to make your nomination in person.]

• Making your CPF nomination Online

  If you choose to make your nomination online, you may do it by logging in to My CPF Online Services with your SingPass.

  If you are making your nomination online, you and your witnesses will need a valid SingPass. Note that making a nomination online does not require your witnesses to be physically present, or to sign a hard-copy form. It can be done at any time and anywhere.

  To make your CPF nomination online, you’ll need to prepare the following:

1. Your SingPass (if you’re making an online nomination).
2. Your nominee(s) name, NRIC number and contact information.
3. Both witnesses’ name, NRIC number and contact information.
4. Witnesses’ mailing addresses (For non-Singapore Citizens/PRs).

• Making your CPF nomination in person

  If you are making a nomination in person, it may be convenient to note that the CPF Board’s customer service executives can act as your witnesses and clarify any questions you may have.

  If you prefer to make your nomination in person, you may do it by making an appointment with a customer service executive at the CPF service centre.

  Please bring all the documents stated below for your appointment at the CPF service centre.

  You’ll need to prepare the following:

1. A copy of your NRIC/passport.
2. Your nominee(s) NRIC number, email and mailing address
3. Both your witnesses’ name and NRIC number (if you’re using your own witnesses).
4. If the CPF Board’s customer service executives are acting as your witnesses - you do not need to prepare your witnesses’ particulars.

Who can I nominate in my CPF nomination?

You may nominate any person or organisation as your nominee. This includes foreign individuals. There is also no limit to the number of nominees that you can appoint.

However, there are a few scenarios that you may want to take note of concerning your nominees:

• CPF nominees that are underaged at the time of claim

  If your nominee is below 18 years of age at the time of claim, his/her share will be held by the Public Trustee’s Office (PTO) for administration until he reaches 18 years of age. During such time, the monies will earn interest, but fees are charged on the amount of interest earned by the PTO.

  For more information on the fees payable, you can find the details here.

• CPF nominees that are of unsound mind at the time of claim

  If your nominee is of unsound mind at the time of the claim, your nominee’s donee appointed via a Lasting Power of Attorney will handle the monies on behalf of the nominee. If your nominee does not have aLasing Power of Attorney, a court-appointed deputy would handle the monies on behalf of your nominee.

• CPF nominees that are bankrupt at the time of the claim

  If your nominee is bankrupt at the time of claim, then the monies will be forwarded directly to the Official Assignee.

When can I make a CPF nomination?

You may make a CPF nomination at any time.

You must be at least 16 years old and of sound mind.

[Click here](https://Click here) to make a CPF nomination now.

Do I need to make a CPF nomination if I already have a Will?

The answer is Yes.

It is recommended to make a CPF nomination even if you already have a Will. A CPF nomination allows you to specify who will receive your CPF savings in the event of your passing. Any distribution of your CPF savings in a Will are of no effect.. By making a CPF nomination, you can ensure that your CPF savings are distributed according to your wishes in a timely manner. It provides an additional layer of control and specificity for the distribution of these funds.

What happens if I do not make a CPF nomination?

If you do not make a CPF nomination, your CPF monies will be distributed according to the intestacy/inheritance laws of Singapore. The distribution will be handled by the Public Trustee’s Office (PTO).

Please note that in order for the Public Trustee’s Office (PTO) to distribute the money, your beneficiaries would be required to pay a fee. For more information on the fees payable, you can find the details here.

What if my nominee passes away before me?

If your nominee passes away before you and you have not made any new nominations when you pass, the CPF monies will be distributed to the rest of the surviving nominees proportionate to their specified shares.

What happens after I make a CPF nomination?

If you have made a CPF nomination, your CPF savings will be distributed in cash to your nominee(s) by default unless you choose otherwise. Your nominees will receive this via cheque or GIRO. This is the default option.

How to change my CPF nomination?

You cannot amend your existing CPF nomination. However, you may simply make a new nomination. The new nomination will supersede the one made previously, the old one will no longer be in force.

How do I claim CPF of the deceased person?

• Report the demise of the deceased person

If the deceased was a Singapore Citizen or Permanent Resident, there is no need to inform the CPF Board. The CPF board will contact the nominees directly.

If the deceased was a foreigner with a CPF account, the death needs to be reported at a CPF Service Centre or by post/email.

Either way, In both cases you’ll need to provide the following specific documents:

1. The deceased’s original death certificate and current passport duly cancelled due to his/her demise, or a copy certified by an official from a Singapore Overseas Mission with his/her official seal/stamp.
2. A letter from the relevant authority confirming the deceased’s identity number, if the death certificate doesn’t show it.
3. Evidence of your relationship with the deceased.
4. Your identity card or passport, and contact details.

• Find out whether the deceased person has a CPF nomination

  You may check if there’s a CPF nomination by:

1. Going through his or her personal belongings or asking close family members.
2. Checking My Legacy vault to see if the person had left a digital record.
3. Contacting the CPF Board directly for help.

If the deceased had made a CPF nomination, the CPF Board will contact the person’s nominee(s) directly about the distribution of the deceased’s CPF savings within 15 working days.

The CPF board will send you a letter informing you of the actions required. In summary, you will have to complete an application to withdraw the deceased member’s CPF by logging in to your CPF account with Singpass. The form will require the following information:

• The deceased’s name and CPF account number.
• The deceased’s date of nomination and date of death.
• Your bank account details.
• Your CDP account number (if the deceased has discounted Singtel shares).

However, if the deceased did not make a CPF nomination before passing away, the distribution of their CPF savings will be transferred to the Public Trustee’s Office (PTO) directly and handled according to the intestacy laws in Singapore. This means that the CPF Board will disburse the savings to the deceased’s family members based on predetermined regulations, which may not align with the deceased’s wishes. It is essential to make a CPF nomination to ensure that your CPF savings are distributed according to your preferences. Failure to do so can lead to complications and potential disputes among family members after your demise.

What If I Lose Mental Capacity After Making My CPF Nomination?

Your CPF nomination will remain valid even after you lose mental capacity.

This nomination will remain since you can no longer revoke your existing nomination or make a new one, except for in the following scenarios:

Scenario 1: All nominees pass away before you.

Scenario 2: The Court makes an order to revoke the existing CPF nomination.

In the above cases, your CPF monies will be distributed according to the Intestate Succession Act by the Public Trustee’s Office (PTO).

Conclusion

In conclusion, while CPF savings cannot be included in a Will, understanding the importance of making a CPF nomination is paramount for comprehensive estate planning. WillCraft offers an intuitive online platform designed to facilitate the creation of a legally valid Will, including the integration of CPF investments and properties into your estate plan.

Our user-friendly interface empowers you to personalise your Will in under 30 minutes, ensuring that your assets align with your wishes. With our platform, we will help you along the way with helpful prompts and tips guiding you through the entire drafting process. Additionally, we give you the option of having your Will reviewed and witnessed by our team of lawyers to ensure that your Will meets all legal requirements and reflects your unique preferences, providing peace of mind and financial security for your loved ones. What’s more, you can do all of this at the comfort of your own home!

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Frequently Asked Questions

Do I need to make a CPF nomination if I already have a Will?

Yes, you do. Since the CPF nomination handles monies that are separate and not included in your estate under a Will, you’ll need to have a CPF nomination to direct how to distribute the CPF monies.

Why is CPF not covered by a Will?

CPF is not covered by a Will because it is governed by specific nomination rules set by the CPF Board. These nomination rules allow CPF members to specify how they would like their CPF savings to be distributed in the event of their passing, and these instructions take precedence over any directions stated in a Will. By following the CPF nomination rules, individuals can ensure that their CPF savings are distributed according to their wishes. It is important for CPF members to regularly review and update their CPF nominations to reflect any changes in their circumstances or preferences.