Be clear about how your CPF is split after you die

Be clear about how your CPF is split after you die

Monthly contributions to CPF goes into three accounts.

• Ordinary Account which can be used to purchase a flat, pay for insurance, investment and education
• Special Account which is designed for old age and investment in retirement-related financial products
• Medisave Account for hospialisation expenses and approved medical insurance.

A retirement account will be set up when you reach age 55 by combining ordinary and special account up to the prevailing minimum sum.

CPF savings will be distributed to family according to intestacy laws if no nomination is done after death has occur.

CPF nomination only cover assets under Ordinary, Special, Medisave and Retirement account and discounted Singtel shares brought in 1933

CPF nomination does not cover the following assets

1. Cash and investments held in CPF investment account under CPFIS-Ordinary Account
2. CPFIS-Special Account investment
3. Claim proceeds for Dependant’ Protection Scheme (DPS)
4. Properties brought with CPF savings

If there is a wish to cover item 1 and 2, it can be done with a will, if not they will be distributed according to intestacy laws.

DPS proceeds can also be covered by a will, however the DPS policy is under NTUC, you can opt to nominate under the Cooperative Societies Act.

Property depends on holding status. If the property is joint, it will be pass to the remaining surviving owner. If not it will form part of deceased estate.

CPFIS are options for CPF member to invest their CPF savings. First $60,000 of combined CPF account earns an extra 1 percent interest, thus to enable members to earn extra interest. CPFIS can only be done after setting aside $20,000 in Ordinary Account and $40,000 in Special Account.

CPF balance is protected from creditors. However, any investments from CPF savings will not be protected from creditors upon death. If there are creditors, you might want to liquidate all CPF investments before death so they are transferred back to CPF and protected from creditors.

CPF nomination can be done by filling up a nomination form which can be obtained on CPF website.