CPF Accrued interest question

[Prof. Utonium]

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

I am just sharing from experience.

 

[The_Davis]

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

hmm.... get cpf to implement live chat?

 

[henrylbh]

I am just sharing from experience.

That's passing misleading info to people here who will then pass to others.

When a person dies, whenever he has outside his CPF will remain outside. His nominee has no claim/benefit on the CPF used and not returned. It goes to the estate.

 

[The_Davis]

I think we are going OT.. purpose of the thread is to discuss whether the accrued interest is materialized or cease to exist aka waived.

it will be useful for those who are staring at huge accrued interest amount.

 

[Prof. Utonium]

That's passing misleading info to people here who will then pass to others.

When a person dies, whenever he has outside his CPF will remain outside. His nominee has no claim/benefit on the CPF used and not returned. It goes to the estate.

From your reply, I think you misunderstood my replies in the first place. In no way was I giving misleading info.

 

[Prof. Utonium]

hmm.... get cpf to implement live chat?

CPF distribution is FOC if nominations made. A nominal fee for Public Trustee if not.

Unless for properties, can't really escape paying for legal help/documents.

 

[eric3743]

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...

Basic answer is that once a CPF member passed away, all the fund in the said CPF (at that point of time) would be distributed accordingly to CPF Nominee if available or to member estate.
> What are the CPF monies and assets of a deceased member made up of?
> What is the distribution process of CPF monies?
Hence there is no mentioned on Accured Interest for deceased.. which could mean it is for living CPF member in the CPF account saving.

Whatever happened to property or fund belong to the deceased CPF member have to refer to the said institutions or entity and/or the estate.
Example for HDB flat have to refer to HDB policy on > Retain Flat Following Life Events

 

[MindMatrix]

Basic answer is that once a CPF member passed away, all the fund in the said CPF (at that point of time) would be distributed accordingly to CPF Nominee if available or to member estate.
> What are the CPF monies and assets of a deceased member made up of?
> What is the distribution process of CPF monies?
Hence there is no mentioned on Accured Interest for deceased.. which could mean it is for living CPF member in the CPF account saving.

Whatever happened to property or fund belong to the deceased CPF member have to refer to the said institutions or entity and/or the estate.
Example for HDB flat have to refer to HDB policy on > Retain Flat Following Life Events

When a member dies, they look at the cash balances in the cpf accounts only. Accrued interest is wiped out.

Any property automatically passes to the surviving joint owner if it is under a joint tenancy, by default HDB flats are joint tenancy. The surviving owner does not have to pay the deceased's cpf usage or accrued interest. https://www.propertyguru.com.sg/pro...versus-tenancy-in-common-whats-the-difference.

 

[K|muRa^84]

I have a somewhat different question.

Can you repay OA monies used for housing (and consequential accrued interest) as and when you so desire?

 

[eric3743]

I have a somewhat different question.

Can you repay OA monies used for housing (and consequential accrued interest) as and when you so desire?

CPF Board welcome your monies.. anytime

 

[JuniorLion]

I have a somewhat different question.

Can you repay OA monies used for housing (and consequential accrued interest) as and when you so desire?

You can, just click on the right link when you log in. Or drop by CPF building and give them a cheque.

 

[K|muRa^84]

Thanks.

Hope the SA shielding trick still works when I’m 55.

 

[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?

anyone knows?

 

[Chromesthlesia]

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

Accrued interest and principal amount cpf used for property does not needs to be refunded.

The $200k similarly forms part of the property upon death.


did your dad pay for any pty using cpf?



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

Yes, written off.

Both principal amount and accrued interest are written off.


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

No... CPF is mainly for retirement. If the person dies, there is no need to refund the cpf used for principal amount and accrued interest property used for property.

No seggregation of P and I.

 

[Prof. Utonium]

anyone knows?

Yes.


You are still alive so you have to repay the accrued interest. But I believe the SERS compensation should be enough to cover it hence you should not need to fork out cash payment out of your pocket.


It is explained at HDB website. In fact, questions you are looking for here are covered in various government websites.

 

[Chromesthlesia]

I have a somewhat different question.

Can you repay OA monies used for housing (and consequential accrued interest) as and when you so desire?

Yes. The amounts will reduce the

A) principal amount first; subsequently
B) accrued interest

When the CPF is fully refunded, you can then discharge the CPF charge. If you are intending to use cpf to continue to pay for your housing, try not to fully refund in order for the charge to remain, so that you can continue to use cpf. Like a nominal sum of $1.

https://www.cpf.gov.sg/Assets/members/Documents/FORM_HSDVR.pdf


Enbloc/SERS is an unique case. Because the government is the person requesting to 'forcefully' take back the HDB, usually for most cases, it is a direct contra from the sales of the enbloced property for the new property.

I do not know of anybody who actually gets/chooses/has sufficient P+I to refund back in cash. Usually enbloced houses are topped up in cash for houses with longer leases or direct leases.

I don't think that its not that its not possible (i could be wrong), but more of not a logical/common solution to opt for a cheaper flat as its not easy to get a cheaper flat from the sales of sers flats after the purchase of the flat.

Bear in mind that flats were much cheaper and affordable back then say less than $50k - $150k? and these flats tend to be very old. So the cpf used also comprises of a certain percentage before the older generation has paid off in cash.

What I'm trying to say is that the scenario that you mentioned is not common unless the loan was extended significantly due to some unfortunate situation..

 

[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.

From your reply, I think you misunderstood my replies in the first place. In no way was I giving misleading info.

I assumed in above comment you are saying that insurance payout 'is in excess of the remaining loan, the balance would be transferred to CPF'?

 

[Prof. Utonium]

I assumed in above comment you are saying that insurance payout 'is in excess of the remaining loan, the balance would be transferred to CPF'?

Yes.

BTW, I think I realised my mistake. I meant HPS. Not mortgage loan.

 

[K|muRa^84]

Thanks. The repayment will go into OA even after 55? Or RA instead?

Yes. The amounts will reduce the

A) principal amount first; subsequently
B) accrued interest

When the CPF is fully refunded, you can then discharge the CPF charge. If you are intending to use cpf to continue to pay for your housing, try not to fully refund in order for the charge to remain, so that you can continue to use cpf. Like a nominal sum of $1.

https://www.cpf.gov.sg/Assets/members/Documents/FORM_HSDVR.pdf


Enbloc/SERS is an unique case. Because the government is the person requesting to 'forcefully' take back the HDB, usually for most cases, it is a direct contra from the sales of the enbloced property for the new property.

I do not know of anybody who actually gets/chooses/has sufficient P+I to refund back in cash. Usually enbloced houses are topped up in cash for houses with longer leases or direct leases.

I don't think that its not that its not possible (i could be wrong), but more of not a logical/common solution to opt for a cheaper flat as its not easy to get a cheaper flat from the sales of sers flats after the purchase of the flat.

Bear in mind that flats were much cheaper and affordable back then say less than $50k - $150k? and these flats tend to be very old. So the cpf used also comprises of a certain percentage before the older generation has paid off in cash.

What I'm trying to say is that the scenario that you mentioned is not common unless the loan was extended significantly due to some unfortunate situation..

 

[BBCWatcher]

The repayment will go into OA even after 55? Or RA instead?

Yes.

When OA funds are used for real estate, upon sale of the property (except if the owner is deceased) the first available proceeds from the sale will be used to repay yourself, both the principal and accrued interest. If you're below age 55 all those dollars will flow back into your OA. If you're 55 or older, and if sufficient funds were not set aside in your RA already, then those dollars will flow into your Retirement Account then, once the FRS is reached, to your OA.

Normal age 55+ withdrawal rules still apply.