Biggest myths about CPF Nomination
LIFETIME MEMBERSHIP The Chinese has a saying “You come to this world with nothing, and you shall leave this world with nothing.” Death is an inevitable phase of life which everyone would have to go through. While your CPF savings certainly belong to yours, the ownership would cease upon death. This is a fundamental universal truth. However, being a responsible wealth builder, I believe in forward planning. In this article, I will share my thoughts on the biggest myths about CPF nomination.
In 2017, I have made my CPF nomination. The process was incredibly simple and easy. It is also free of charge. I was very impressed by CPF Board’s efficiency and service standard. Within three days, I got a follow-up call from a CPF officer confirming my nomination details were in order and within a week, I got an official letter from CPF Board.
Will versus CPF nomination
The biggest myth about CPF monies is that you can make a will on it. Many Singaporeans are not aware that CPF savings are not covered under will. According to CPF Board website, CPF savings are not part of your estate. The policy intent is to protect from creditor claims on any outstanding debts. This arrangement aims to “protect your CPF savings and ensures that your nominees receive your CPF savings expeditiously”. If you wanted your CPF savings to be distributed according to your wishes, then the only way is to make CPF nomination.
In the absence of a valid CPF nomination, your CPF savings would be transferred to another public agency called Public Trustee Office (PTO) upon your death. The biggest irony of all is that CPF nomination is free of charge.
When you are alive, making a CPF nomination does not cost a single cent at all. Yes, this is true! But if you did not make any CPF nomination, the PTO will charge your nominees for the distribution of your CPF monies upon your death, in accordance with the intestacy law.
The fees for dealing with CPF money are [This is a premium article. The rest of the content is blocked and can be accessible by SG Wealth Builder Members only. To read the full content, please sign up as member.]
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