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Old 15-09-2018, 03:08 PM   #31
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this relative of mine .....

Is already Credited ...is HER PERSONAL POSB account not in Joint account with her kid.

I guess CPF is make it simple , hassle free wait people debate about the money." if " credit to a joint account ba .


PROVIDED the user ONLY HAVE ONE POSB account and happen is joint account perhaps CPF will credit to this account since you ONLY have one POSB account.
My apology. I read mail as email. Next time say by post lah.

Usually, CPF will use the posb account that's in their record.
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Old 15-09-2018, 04:04 PM   #32
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My apology. I read mail as email. Next time say by post lah.

Usually, CPF will use the posb account that's in their record.
well, we learn from one another here anyway is my relative confuse , she always thought go to join account .

but what I have mention , if user happen to have just one account and is joint I wonder CPF will pay out to this account ? I feel will since user ONLY have one POSB account next is joint

for my relative case , she got two POSB account one is personal , one is joint so naturally it will credit to Personal account.
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Old 16-09-2018, 04:46 PM   #33
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So you end up getting ownership of the flat and $350k in your pocket?

hi guys, just for discussion sake.

Objective: Take out maximum CPF OA (for whatever reasons)

Situation: To take over mom's flat. My SA met the current FRS. OA = $380k. My mom's RA met the Retirement Sum for her cohort. She used her OA to pay loan for flat. Current OA+accr interest is $100k. She sells flat to me for $350k.

Now, for me, i can fully pay the flat using my OA, as for her, she can get $350k in cash (correct me if i'm wrong). Assuming she doesn't keep a single cent, theoretically she can return the $350k to me and by doing so, I have "taken out" my CPF OA.

Does it work this way?
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Old 17-09-2018, 08:49 AM   #34
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Of course there's also the change in title. If somebody wants to give me his/her home, thanks I guess, but I'd never ask a parent to give me his/her home. That strikes me as most odd.

If you're really hell bent on extracting unrestricted cash from your CPF account, I think you're allowed to transfer at least Special Account funds to your parent's Retirement Account, then transfer your own OA funds to replenish your Special Account. Upon the parent's demise the Retirement Account residual goes to his/her CPF nominee. I hate to be morbid, but if your parent is in poor health then that won't take long. Yes, there are a fair number of people who do exactly what I just described.


Yes, good point. These costs are non-trivial.
Yes, i know what you mean. My example, an extreme case, is raised just for discussion. Objective is to assess if this is a possible way to get monies out of the system (if needed).
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Old 17-09-2018, 09:49 AM   #35
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Objective is to assess if this is a possible way to get monies out of the system (if needed).
Maybe, but what you’ve described is quite simply the “Sell your house and give me all the money, Mom!” method of raising funds. The government would be well within its rights to come after you with all force and fury if there’s even a faint whiff of elder abuse involved.

....Needed for what? Gambling debts?
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Old 17-09-2018, 10:16 AM   #36
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I don't understand why TS mentions about his mum "returning" the money to him while those are her retirement funds in the first place.
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Old 17-09-2018, 10:47 AM   #37
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Maybe, but what you’ve described is quite simply the “Sell your house and give me all the money, Mom!” method of raising funds. The government would be well within its rights to come after you with all force and fury if there’s even a faint whiff of elder abuse involved.

....Needed for what? Gambling debts?
Lol, that's definitely not the case, in respect of elder abuse and gambling debts. obviously there are certain conditions that i didn't share as it is personal and not relevant to the question.
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Old 17-09-2018, 11:52 AM   #38
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I don't understand why TS mentions about his mum "returning" the money to him while those are her retirement funds in the first place.
Right. It's a "Mom, give me your house, now!" maneuver.

This doesn't strike me as viable. The government is heavily involved every step of the way (HDB, CPF), and I'm sure the government is not naive. Questions will be asked, at the very least. It's also a very expensive way to raise cash.

obviously there are certain conditions that i didn't share as it is personal and not relevant to the question.
OK, but there better be a damn good reason why you'd even ask a parent to hand over his/her house to you. It's hard for me to imagine being so desperate that I would even make such a request. I love my parents, and they've already been incredibly generous during the first two decades of my life -- and beyond that, for that matter. That's more than enough, and I'm eternally grateful...and ready to help them out.

The reality here is that you have a relatively high CPF balance precisely because you've had many years of relatively high (or higher) income. If you're in financial distress, it's not because of lack of income. If something went horribly wrong, it's all on you. A gambling debt isn't a bad guess in these circumstances.

As it happens, you can tap your CPF funds in a dire emergency, and with zero transaction costs. You (or a loved one) just heads over to a CPF customer service office, explains the situation (e.g. a terminal illness), and CPF arranges an exceptional withdrawal. Here are the exact rules for that particular provision:

You can apply to withdraw your CPF savings on medical grounds if you

i. are physically or mentally incapacitated from ever continuing in any employment; or
ii. have a severely impaired life expectancy; or
iii. lack capacity within the meaning of Section 4 of the Mental Capacity Act (MCA) and the lack of capacity is likely to be permanent; or
iv. are terminally ill.
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Old 17-09-2018, 01:19 PM   #39
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Yes, i know what you mean. My example, an extreme case, is raised just for discussion. Objective is to assess if this is a possible way to get monies out of the system (if needed).
Got other ways of extracting some money from CPF than taking advantage of own people. Mother loses right of ownership. Money in the hand of elderly is very susceptible to being robbed Like love scam etc

God knows what's in the head of DIL or future DIL or God knows whether son will have change of heart.

If need be, use own CPF to buy own property and continue to stay with mum.
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Old 17-09-2018, 01:27 PM   #40
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So you end up getting ownership of the flat and $350k in your pocket?
He said "Assuming she doesn't keep a single cent, theoretically she can return the $350k to me and by doing so, I have "taken out" my CPF OA"

Still most here will think otherwise Mother got conned by first love scam
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Old 17-09-2018, 02:08 PM   #41
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He said "Assuming she doesn't keep a single cent, theoretically she can return the $350k to me and by doing so, I have "taken out" my CPF OA"

Still most here will think otherwise Mother got conned by first love scam
Exactly, it's just a hypothetical scenario and many are fast to jump right in, not to provide any direct answer but to judge. tsk tsk.
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Old 17-09-2018, 02:15 PM   #42
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Exactly, it's just a hypothetical scenario and many are fast to jump right in, not to provide any direct answer but to judge. tsk tsk.
Anyway I think last time many also exploited the loophole of contributing cpf to their old ages parent to reduce their taxable income and then their parent will return to them the money, and this loophole was closed
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Old 17-09-2018, 02:17 PM   #43
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Right. It's a "Mom, give me your house, now!" maneuver.

This doesn't strike me as viable. The government is heavily involved every step of the way (HDB, CPF), and I'm sure the government is not naive. Questions will be asked, at the very least. It's also a very expensive way to raise cash.[/i]
I'm assuming that if the sale and purchase is done at market price and she's the legit seller and I'm the legit buyer. I guess any arrangement of monies after the deal, is private and is not flouting the law in any sense, right?
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Old 17-09-2018, 02:20 PM   #44
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Yes it’s a theoretical scenario but I am surprised this question was raised because “return” is not a right word.

It’s not a return btw. If u want her to return ur cpf money, u need to then return her the house (legally, that is with a deed) or something of equivalent value.

So u did not take out your cpf money this way. U took away her house AND money.

He said "Assuming she doesn't keep a single cent, theoretically she can return the $350k to me and by doing so, I have "taken out" my CPF OA"

Still most here will think otherwise Mother got conned by first love scam
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Old 17-09-2018, 02:41 PM   #45
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I'm assuming that if the sale and purchase is done at market price and she's the legit seller and I'm the legit buyer. I guess any arrangement of monies after the deal, is private and is not flouting the law in any sense, right?
How much is your Mother resale hdb? If it's worth more than your $350k, most likely you won't be able to buy from her at your price too
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