Last Updated on by Tree of Wealth
Ever pondered what happens to your savings after you pass on? Specifically, those hard-earned funds you’ve accumulated in your CPF as a Singaporean?
Seeking clarity on how to guarantee your family or close ones can access your CPF savings as you’ve planned?
Concerned if they’ll truly receive the funds you’ve diligently saved for them?
The key to all these questions lies in a simple action: making a CPF nomination.
Lets delve deeper to understand:
Defining CPF Nomination
To break it down, a CPF nomination is essentially you (the nominator) designating one or more persons (the nominees) to inherit:
- The residual CPF savings from your Ordinary, Special, MediSave, and Retirement Accounts (OA, SA, MA, and RA) in a monetary form,
- Any remaining CPF LIFE premiums, and
- Applicable Special Discounted Share scheme, once you’re no longer around.
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Interestingly, this entire process is cost-free both for you and for your nominees when the time comes to access these savings.
It’s worth noting that this is all part of the CPF Nomination Scheme.
There are also variants of the CPF nomination like the Enhanced Nomination Scheme (ENS) and the Special Needs Saving Scheme (SNSS), which we will unpack later in the discussion.
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What Doesn’t Fall Under a CPF Nomination?
While you can bequeath several assets via the CPF nomination, some items remain off the list. These include:
- Real estate acquired using your CPF savings,
- Payouts from the Dependent’s Protection Scheme (DPS),
- Assets linked to the CPF Investment Scheme (CPFIS).
Criteria for Making a CPF Nomination
To initiate a CPF nomination, you need to:
- Be at least 16 years old.
- Possess a clear state of mind, meaning you’re fully able to make decisions without being influenced by any long-standing mental impairments that might lead you to perceive things not ordinarily considered rational.
- Hold an active CPF account.
Who is Eligible to be Your Nominee?
Beyond considering immediate family like spouses or parents, you have the liberty to choose any individual as your nominee, even if they’re not CPF account holders themselves.
You have the flexibility to nominate any individual, irrespective of their age or nationality, or even an organization. If your chosen nominee isn’t a Singapore Citizen or a Permanent Resident, ensure you furnish their complete name, foreign ID number, and postal address on your nomination form. This allows CPF to efficiently reach out for a seamless distribution of your CPF savings.
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How Are CPF Funds Distributed Depending on Your Nominee’s Status?
Nominee Below 18 Years
If the nominee is under the age of 18, the funds will be safeguarded by the Public Trustee’s Office (PTO). They will only gain access to these funds once they reach the age of 18.
Nominee of Unsound Mind
For nominees who are not mentally competent, their court-appointed deputies will manage and oversee the distribution of the monies.
Nominee Declared Bankrupt
In situations where the nominee is bankrupt, the funds will be directed to the Official Assignee (OA). This is a legal procedure since the property of someone declared bankrupt legally belongs to the OA.
Nominee Above 18, Mentally Competent, and Not Bankrupt
If your nominee fits this category, they will be contacted within 15 working days upon the confirmation of your demise. They will then be provided with options on how to withdraw the funds, whether in cash or through General Interbank Recurring Order (GIRO).
The Number of Nominees: Is There a Limit?
The great news is there’s no upper limit to how many nominees you can designate! But if you’re opting for an online nomination, the platform allows up to 8 nominees. For those with more than 8 in mind, a visit in person to one of the CPF Service Centres becomes necessary, accompanied by added paperwork for each extra nominee.
Currently, Singapore boasts 5 CPF Service Centres situated in Bishan, Maxwell, Tampines, Woodlands, and Jurong. Don’t forget to secure an appointment at least a day prior since they only accommodate scheduled visits.
Precedence When a Nominee Predeceases You
Should a nominee pass on before you do, their designated share of your CPF savings will be equally divided among the remaining nominees as per your previous instructions. If a situation arises where all your nominees have predeceased you, your CPF savings will be entrusted to the Public Trustee Office (PTO). From there, it will be allocated to your legal heirs in accordance with the Intestate Succession Act. Do note, however, this process comes with a one-time administrative fee (with a minimum charge of $15).
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Revisiting Your CPF Nomination: When and Why?
It’s always wise to occasionally revisit and reassess your nominees, particularly during significant life events. Such moments might include:
- Tying the knot,
- The arrival of a child,
- Going through a divorce, or
- The unfortunate passing of a nominee.
Life evolves, and so might your preferences and feelings. Therefore, aligning your nominations with these significant events is a prudent approach.
A crucial thing to bear in mind: walking down the aisle and saying “I do” will nullify any prior CPF nominations you made. So post-wedding, it’s advisable to renew your CPF nomination, ensuring your savings reach your spouse and any potential new additions to your family.
Interestingly, while marriage has this effect, a divorce doesn’t. Your CPF nominations remain untouched and valid even after a divorce.
Determining and Modifying Your CPF Nomination: Here’s How
To review if you have an active CPF nomination and delve into its specifics:
- Visit cpf.gov.sg and navigate to “My Messages.”
- An existing CPF nomination will manifest as a specific message. For a deeper look, follow the “Nomination Details” link and subsequently “View My Nomination Details.”
- If you’re more inclined towards a face-to-face approach, pop into any CPF Service Centre with your NRIC/passport to glean insights into your existing nomination.
- Remember, should you opt to modify any details, it’s deemed as a fresh nomination, which replaces the preceding one.
What If I Don’t Opt for a CPF Nomination?
Skipping a CPF nomination might leave you with some questions. Where does my savings go? Will my dear ones benefit? Or does it revert to the CPF Board?
Here’s the drill:
Without an explicit nomination, the Public Trustee’s Office (PTO) assumes responsibility for disbursing your CPF savings among legally recognized heirs. This identification process can stretch up to half a year, locating and confirming rightful claimants.
Such legitimate claimants comprise your direct kin and nearest blood or legally related relatives.
Yet, there’s a catch: you don’t get a say in which family member secures what portion of your savings.
Moreover, the recipient(s) will need to foot a one-off charge, starting from $15, to the PTO for this facilitation.
So, to have better control over your savings distribution and spare your kin this fee, preemptively making a nomination is the way to go.
CPF Nomination for Muslim Members in Singapore
The CPF nomination process for Muslim residents of Singapore has its unique aspects.
When a Muslim CPF member passes away, the CPF Board steps in to wind down the member’s CPF account. The residual funds are then entrusted to the Public Trustee (PT). This PT is tasked with apportioning the deceased’s CPF savings in alignment with Shariah law.
If a Muslim member hasn’t actively set a CPF Nomination, the distribution still falls under the Public Trustee Office’s (PTO) purview. This is in line with the beneficiaries outlined in the Inheritance Certificate specifically crafted for Muslims, which is officially issued by the Syariah Court of Singapore.
Remember, beneficiaries will bear the brunt of a singular fee payable to the PTO during this distribution process.
CPF Enhanced Nomination Scheme (ENS)
The ENS stands apart from the traditional CPF Nomination Scheme. Rather than your nominees receiving your CPF savings in liquid cash, these savings are channeled directly into their CPF accounts.
This scheme is particularly useful if you believe your nominees might be financially imprudent or have tendencies to splurge. Keeping funds in their CPF acts as a monetary guard rail, ensuring the money serves more responsible purposes like healthcare or securing their retirement.
CPF Special Needs Savings Scheme Nomination (SNSS)
This scheme is tailored for nominees who are children with special needs requiring enduring care. Should you opt for the SNSS, post your demise, your child would benefit from monthly payouts sourced from your CPF savings.
It’s vital to note that digital nominations are off the table for both the ENS and SNSS schemes. The standard protocol involves reaching out to the CPF Board and scheduling an in-person appointment at one of the designated 5 centres.
What You Need To Make CPF Nominations
1. Online Nominations
If you’re planning to nominate online, it’s essential to keep certain details about you, your nominees, and witnesses at hand for a smooth process. However, online nominations have an upper limit of eight nominees.
For those opting for face-to-face sessions, ensure you carry photocopies of the required documents.
- Nominee(s): Their full name, NRIC/Foreign Passport/Identification Number, mailing address, and their relationship to you (the nominator).
- Authorized Person: This refers to you. You need your full name and NRIC/Foreign Passport/Identification Number.
- Witnesses: Names of the two witnesses, their NRIC/Foreign Identification Number, email address, and contact number.
Opting for Transparency in CPF Information: You have the choice to designate specific individuals, possibly your nominees, who can access details of your CPF account after your demise.
2. Understanding CPF Nomination Witnesses
Witnesses are pivotal to the nomination process, affirming that the decision stems from an individual in a sound mental state.
For online CPF nominations, two witnesses are required:
- Must be 21 or older.
- Must possess clear mental faculties.
- Should be valid SingPass account holders.
- Cannot be among the nominee(s).
- Cannot be the nominator.
Once chosen, these witnesses will receive either an SMS or an email. This notification prompts them to log in to the CPF Online Services using their SingPass and bear witness to your nomination. A crucial point here: both must acknowledge having been informed about your online nomination within a seven-day window from the day you submit the nomination.
Failure on their part to do so means you can’t finalize the online nomination process.
Importantly, your witnesses will not be privy to the specifics of your nomination.
Opting for a physical nomination? Your witnesses can be those fitting the above criteria or the service professionals at CPF Service Centres.
Remember, whether online or in person, the nomination is deemed complete only once both witnesses have attested to the nomination.
Wrapping Up on CPF Nominations
Navigating the nuances of CPF might seem daunting, but understanding CPF nominations is paramount. Why? It’s the linchpin to ensuring your hard-earned CPF savings are safeguarded and will benefit those you care about after your departure.
Securing your loved ones’ futures and knowing they’ll be provided for is an unparalleled peace of mind. Now, with a comprehensive grasp of CPF nominations, you can confidently dictate how your savings will be allocated, provided you’ve made a nomination.
The unpredictability of life underscores the need for forward planning. As life evolves and milestones are reached, ensure your nominations reflect your current wishes.
Should someone in your circle wonder about the fate of their CPF savings posthumously or wish to dive deeper into CPF nominations, do them a favor: share this informative piece.
Seeking guidance on financial or estate planning? We collaborate with impartial financial advisors ready to assist you on this journey.
