Estate planning: Importance of CPF Nomination and how it can Link to a WILL

This post is triggered by a Discussion with a Fellow Status Friend who have planned to Top Up his CPF Retirement Account (RA) to Enhanced Retirement Sum by Age 55.

I will not go into Details for the above Plans.

Rather, something more important which ANYONE could be caught by surprise if they

1. failed to make a CPF Nomination or the Nominee also passed on

2. choose to Nominate to a MINOR without a Trustee.



What would happen if the deceased did not make a CPF Nomination?

Short Answer: 
The CPF Board will send the CPF money to the Ministry of Law: Public Trustee's Office, as required by law.

Long Anwer:The Next of Kin (NOK) or whom is eligible for the above,
a) have to go through ApplicationS
b) meeting the ConditionS
c) "Wasting Money" to get hold of money belonging to the Family

The below link will provide full answer/the procedures for an Individual to be distributed to him/her, or Click on Point 2 for that link.

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

The focus on this article is to highlight the COSTLY cost of not making a CPF Nomination.

Referring back to the ABOVE link,



The Highlighted paragraph is saying the CPF Money will become part of the Nominee Estate!

With a WILL all will be fine but if the same Nominee does not have a WILL the below charges will applies!



Source: https://www.mlaw.gov.sg/content/pto/en/deceased-cpf-estate-monies/information-for-next-of-kin-estate-monies.html

The above image will covers the wastage that cannot be avoided for point 1.

Now for point 2, if the Nominee is a Minor.



Source: https://www.mlaw.gov.sg/content/pto/en/deceased-cpf-estate-monies/information-for-next-of-kin-cpf-monies.html

By Nominating to a Minor, the Public Trustee Office will charge the above fees for "Holding" and "Investing".

If that is what the deceased wanted, then we should respect that but IF the deceased did not wanted the above, is always good to make sure the right decision is made for the nominee.

This blog post is not flaming any party or parties but helping to keep the public informed of the legit cost for not making a cpf nomination or/and a will.

Another Good Deed Done!