CPF Accrued interest question

[The_Davis]

if you use cpf to pay for your mortgage under need to repay accrued interest when disposing of your pty?


if you happen to die but haven't sell off pty:
1. will pty be transferred to nominees in will without need to repay accrued interest?
2 . or will nominee need to pay up the accrued interest in order to take over the pty?

assuming you had utilize 24k x 30 years = 720k from cpf that would be a huge amt of accrued interest at the tail end...

 

[ceciltan]

I not sure but probably dun need to pay the accrued interest. In SG seem like your CPF money is not your money but rather your children money. After u die, they can take out all in full like how I took out my dad entire cpf after he die.

 

[cscs3]

I not sure but probably dun need to pay the accrued interest. In SG seem like your CPF money is not your money but rather your children money. After u die, they can take out all in full like how I took out my dad entire cpf after he die.

It depend on how long you lives. If you can pass age 55. You can start to use your money in OA. RA at later time.

 

[Thoreldan]

Main reason to repay accrued interest is to prepare for one's retirement.

If a person is dead, what retirement is there to talk about?

 

[SBC]

Good thought.

But need to know this gov’s Policy exactly. May not be exactly what you think is reasonable to us.

 

[henrylbh]

if you use cpf to pay for your mortgage under need to repay accrued interest when disposing of your pty?


if you happen to die but haven't sell off pty:
1. will pty be transferred to nominees in will without need to repay accrued interest?
2 . or will nominee need to pay up the accrued interest in order to take over the pty?

assuming you had utilize 24k x 30 years = 720k from cpf that would be a huge amt of accrued interest at the tail end...

Every property owner should know that when he sells his property, cpf used plus accrued interest need to return his CPF.

When an owner dies, whatever he has in CPF goes to the nominee and if none, to the public trustee to be distributed according to intestate laws.

The property will go the beneficiary and if no a will, to the estate/administrator to be distributed according to interest laws.

There is no need to return a cent to CPF except the beneficiary or estate need to settle any outstanding housing loan and decide whether to dispose
or keep the property, if eligible.

 

[sAVaGEmP5]

so u liquidate at market price and the beneficiary or new estate owner get to keep all the cash ? No need repay CPF ? (anyway repay CPF already still become your cash hor)

So it means its better to sell a HDB/condo whatever after owner die than b4 issit.

"When an owner dies, whatever he has in CPF goes to the nominee and if none, to the public trustee to be distributed according to intestate laws." So the CPF goes into nominee CPF or become liquid cash ?


Damn i gonna ask my parents to hang on.......

 

[havetheveryfun]

so u liquidate at market price and the beneficiary or new estate owner get to keep all the cash ? No need repay CPF ? (anyway repay CPF already still become your cash hor)

So it means its better to sell a HDB/condo whatever after owner die than b4 issit.

"When an owner dies, whatever he has in CPF goes to the nominee and if none, to the public trustee to be distributed according to intestate laws." So the CPF goes into nominee CPF or become liquid cash ?


Damn i gonna ask my parents to hang on.......

nominee will receive in cash by default (but the person who passed away can choose other forrms of payment methods) :

https://www.gov.sg/factually/content/what-happens-to-your-cpf-savings-when-you-pass-away

actually quite surprising a lot of ppl didnt know this.

 

[The_Davis]

Main reason to repay accrued interest is to prepare for one's retirement.

If a person is dead, what retirement is there to talk about?

my question is if the owner dies while his accrued interest amount is say $200k, what happens to this $200k??

I not sure but probably dun need to pay the accrued interest. In SG seem like your CPF money is not your money but rather your children money. After u die, they can take out all in full like how I took out my dad entire cpf after he die.

did your dad pay for any pty using cpf?

nominee will receive in cash by default (but the person who passed away can choose other forrms of payment methods) :

https://www.gov.sg/factually/content/what-happens-to-your-cpf-savings-when-you-pass-away

actually quite surprising a lot of ppl didnt know this.

this page never mentions anything about accrued interest... is it written off in that case??

Good thought.

But need to know this gov’s Policy exactly. May not be exactly what you think is reasonable to us.

my thought is say really have to repay the accrued interest and then distribute according to will... wow.. you may end up with unhappy families

 

[Prof. Utonium]

if you use cpf to pay for your mortgage under need to repay accrued interest when disposing of your pty?


if you happen to die but haven't sell off pty:
1. will pty be transferred to nominees in will without need to repay accrued interest?
2 . or will nominee need to pay up the accrued interest in order to take over the pty?

assuming you had utilize 24k x 30 years = 720k from cpf that would be a huge amt of accrued interest at the tail end...

my question is if the owner dies while his accrued interest amount is say $200k, what happens to this $200k??



did your dad pay for any pty using cpf?



this page never mentions anything about accrued interest... is it written off in that case??



my thought is say really have to repay the accrued interest and then distribute according to will... wow.. you may end up with unhappy families

If there is a will, it would be transferred to the nominees. If not, divided according to the law.

There is no need to pay for the accrued interest. The only payment you need to pay is whatever legal documents and processes required for the transfer.

The purpose of accrued interest payment is for retirement sake. To close the loop hole of withdrawing a person CPF before reaching of retirement age.

The balance in CPF would be distributed according to nominations made.

If one bought a mortgage loan (for HDB) and the sum covered is in excess of the remaining loan, the balance would be transferred to CPF to be given out accordingly.

 

[The_Davis]

any links from cpf that states accrued interest not payable upon death?

 

[henrylbh]

If one bought a mortgage loan (for HDB) and the sum covered is in excess of the remaining loan, the balance would be transferred to CPF to be given out accordingly.

No such rule and it also doesn't make sense to have such a rule as it serves no purpose.

 

[nekoarc]

any links from cpf that states accrued interest not payable upon death?

From CPF site

Not covered under CPF Nomination:
Properties bought using your CPF savings
Payouts from Dependants’ Protection Scheme (DPS)*
Cash and investments held in the CPF Investment Account under the CPF Investment Scheme-Ordinary Account (CPFIS-OA)
Investments held under the CPF Investment Scheme-Special Account (CPFIS-SA)

These will form part of the deceased member’s estate. You can find out more about estate planning at the MoneySENSE website.

This suggests that CPF isn't involved in any property stuff at all, even if the property was bought using CPF. Might need to get an estate lawyer to check this exact situation, but it sounds like they DGAF and you get 100%

 

[The_Davis]

what is DGIF?

 

[nekoarc]

what is DGIF?

Sorry typo, meant DGAF (Don’t give a F$ck). Fixed.

 

[foxer77]

if you use cpf to pay for your mortgage under need to repay accrued interest when disposing of your pty?


if you happen to die but haven't sell off pty:
1. will pty be transferred to nominees in will without need to repay accrued interest?
2 . or will nominee need to pay up the accrued interest in order to take over the pty?

assuming you had utilize 24k x 30 years = 720k from cpf that would be a huge amt of accrued interest at the tail end...

if the.pty is pass down after the owner decease. dont think need to pay intrest after it.sold off.

 

[The_Davis]

see - so many "I think/thought"

 

[nekoarc]

Here's a better one:

What happens to the property bought with CPF savings when a member passes away?

When a member passes away, the CPF savings withdrawn from his CPF account for the property need not be refunded to his account. The property will form part of his estate if it is held in tenancy-in-common or will pass on to the remaining surviving owner(s) if it is held in joint-tenancy.

Edit:
Also a legal forum:

If I will my CPF to A and HDB house to B but my HDB house was fully paid by using my CPF, will B receive the full amount from the sale of my HDB house?

Upon a member's death, the CPF used to purchase a HDB house ceases to be refundable. Hence, B will receive the full proceeds of sale and A receives the balance of your CPF account.

 

[The_Davis]

ah... now that's pretty clear.

side track. in event of sers/vers/enbloc need to top up accrued interest or not after sales?

 

[sg_investor]

I wonder whether technology can save citizens a few thousand of legal fees for such common scenario.