Aside from the money you have in your banking and investment accounts, there is another fund you can pass on to your surviving family members after your death. In Singapore, the Central Provident Fund or CPF is a key pillar of the government’s comprehensive social security system. Although it does not form part of a deceased’s estate, it should still be considered in estate planning.

As an asset that you can pass to a beneficiary upon your death, your CPF money is part of estate planning in Singapore. Although it does not form part of the estate, an understanding of where does CPF money go after death allows you to ensure that your fund goes to your intended nominee.

What is CPF money?

Providing retirement earnings and healthcare for Singaporeans, the CPF is a mandatory social security savings scheme funded by contributions from employers and employees. If you are a working Singaporean, you and your employer make monthly contributions to the fund. These contributions go into 3 accounts that are designed to take care of your retirement, housing and healthcare needs.

Ideally, you would be able to withdraw your CPF savings at a certain age, or take advantage of monthly payouts when you reach 65 years old.

Where does CPF money go after death?

In the event that you die, your CPF money will be dealt with in accordance to whether you have made a CPF nomination before your passing.

Scenario 1: You made a CPF nomination before your passing

In this case, your CPF money after death will be distributed in cash (via cheque or GIRO) to the nominees in the percentage proposed in your nomination.

Scenario 2: You were not able to make a CPF nomination before your passing

The CPF savings will be forwarded to the Public Trustee for distribution in accordance with the Intestate Succession Act. For Muslims, the CPF savings will be distributed in accordance with the Administration of Muslim Law Act.

Through proper estate planning in Singapore, you will be able to consider who will be the recipient of your CPF money after death.

How do I make a CPF nomination?

Regardless if you are into estate planning or not, it is best that you make a CPF nomination as soon as you start accumulating savings in your CPF accounts. Here are some things to consider first:

1. Who should receive your CPF savings after you die and what percentage should each nominee receive?
2. Do you wish to authorise a specific person(s) to obtain your CPF account information after your passing? The Board, upon your request, will disclose your CPF statement(s) of account and your nomination details to this authorised person.
3. Select two witnesses and inform them of the appointment.

Once you are done with these decisions, you can make your CPF nomination online, or at CPF Service Centres. If you will be visiting the centres, you will have to complete the CPF Nomination Form in the presence of Customer Service Executives who can act as your witnesses.

What do surviving family members need to do to receive my CPF money?

If you are a Singapore citizen or permanent resident, the CPF Board will be notified of your passing by the relevant public agency. The  CPF Board will then distribute the CPF money after death accordingly.

For foreigners, the death needs to be reported to the CPF Board either through the mail or through the CPF Service Centres. The mailing address is:

Central Provident Fund Board

Withdrawal Schemes Department (WSD)

238B Thomson Road

#08-00 Tower B Novena Square

Singapore 307685

Note that your loved ones would have to present certain documents to facilitate the claim of the CPF money after death.

Even though your CPF money is not part of your estate, it is important that you take time to make sure that this fund will go to the right persons after you die.

CPF savings should still be noted in estate planning and wealth preservation strategies and solutions so the fund is also considered when you distribute your other assets.

Estate planning in Singapore also allows you to double-check whether you have named the beneficiaries for your possessions to avoid an added inconvenience to your loved ones. If you have children, it is essential you have proper estate planning for parents to provide for your family’s needs upon your demise.

That said, identifying and making action plans for your assets is a good start towards your estate planning process. If you would like to ensure a comprehensive plan for all areas of your estate, it is best to consult with an estate planning lawyer.