5 Things about CPF Nomination of Your CPF Monies

CPF has been pushing for its account holders to state their Nomination for their CPF money.
Below are 5 points you should know about it!

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1) A nomination is recommended for CPF money to be distributed to your nominees.
Your CPF money is unable to be distributed according to your will.
Your CPF money will be distributed via
      a) a CPF nomination
      b) a public trustee if you do not have a nomination

2) Below is a table showing the items covered and not covered under the CPF nomination.

3) A will is unable to touch your CPF money.
Thus if you state in your will how to distribute your CPF money, it is not recognized.
A will states all your assets as estates, your debtors will have claim over your estates and the excess after paying off the debtors will be given to the dependents.

CPF money that is covered under a nomination will not form part of your estate. Because it is not part of your estate, your CPF money will go straight to your dependents or nominees in the event of your demise. It would not be claimable by your debtors!

4) Debt Repayment is Optional.
If you have any outstanding debt, chances are your nominees might use the CPF money for debt-repayment. However, that is their choice as they can also choose NOT TO REPAY YOUR DEBTS!

5) No Nomination? No Problem (sort of).
If you did not create a nomination, your CPF monies will be distributed via a Public Trustee.

It will still be distributed to your dependents, just not in the proportion that you wished they would receive it in.


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