Oral Answer by Minister for Manpower Dr Tan See Leng on Investments Bought Using CPF of Deceased Member Going To Estate Upon Death
NOTICE PAPER NO. 1805 FOR THE SITTING ON 20 MARCH 2023
QUESTION NO. 4349 FOR ORAL ANSWER
MP: Mr Vikram Nair
To ask the Minister for Manpower (a) why do investments bought using the CPF Special Account or Ordinary Account of a deceased member go to his estate upon death and not to his CPF nominee; and (b) whether the CPF will consider allowing such investments to also go to the nominee rather than the estate.
1. CPF Investment Scheme (CPFIS) investments are disbursed to the deceased member’s estate. Doing so allows beneficiaries of the estate to decide how best to manage these assets, including the preferred timing for the sale of assets such as unit trusts and stocks. These decisions should be made by the beneficiaries as the decisions could affect the value of the CPFIS investments. CPF monies under the CPF Nomination scheme can then be disbursed quickly without having to await the beneficiaries’ decision on the CPFIS investments.
2. Members are informed when making their CPF nomination that the nomination does not cover CPFIS investments. Hence, CPF members who want their CPFIS investments to go to the same beneficiaries as their CPF nominees should do so through their will.