When I pass on, my nominees will not receive my CPF savings in cash. True or False?

You may have received a message or seen rumours circulating on social media about your CPF nomination. Are those rumours true? Read on to get the answers to common misconceptions about the CPF nomination.

 

Myth #1: My Medisave savings will go to the government when I pass on.

False! When you make a CPF nomination, you can specify who will receive your CPF savings and how much, upon your passing. This covers CPF savings in your Ordinary, Special, Medisave and Retirement Accounts, unused CPF LIFE premiums, and discounted Singtel shares. Even if you do not make any CPF nomination, your CPF savings will still be distributed to your family through the Public Trustee’s Office (PTO) under the Intestate Succession Act or the Inheritance Certificate (for Muslims).

 

Myth #2: My nominees will not receive my CPF savings in cash.

False! There is no basis to the rumours circulating via WhatsApp and online. By default, your nominees will receive your CPF savings due to them in cash, unless you voluntarily opted for a different type of CPF nomination.

While the majority of CPF members opt for cash nominations, from time to time, we do receive requests from members who want to explore other options.

For example, you can opt for the Enhanced Nomination Scheme (ENS) to bequeath your CPF savings directly into your nominees’ CPF accounts, or the Special Needs Savings Scheme (SNSS) to provide a long term, regular stream of monthly fixed payouts to special needs nominees.

 

Myth #3: My loved ones won’t receive my CPF savings if I don’t make a CPF nomination.

False! Your CPF savings will still be distributed to your family members even if you do not make a CPF nomination.

Without a CPF nomination, your CPF savings will be transferred to the Public Trustee’s Office (PTO) for distribution to your family members under the Intestate Succession Act or the Inheritance Certificate (for Muslims). Do note that the PTO charges an administration fee for this.

Nonetheless, you should consider making a CPF nomination if you want your CPF savings to be distributed according to your wishes. As part of our legacy planning, we want to be assured that our loved ones are taken care of even when we are no longer around. This includes identifying and distributing hard-earned assets such as our CPF savings – which if you weren’t already aware, cannot be distributed via a will.

 

Myth #4: Once I’ve made a CPF nomination, I cannot change it.

False! You can always change your CPF nomination by submitting a new one. In fact, you should review your CPF nomination regularly to ensure that it is still meeting your needs especially when there are changes to your marital status or family situations such as births and deaths. Do note that marriage will revoke any existing nomination to allow you to consider again how you want your CPF savings to be distributed in view of new addition(s) to your family.

For more information on how to make a CPF nomination and details on what a CPF nomination covers, visit the CPF website.

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