CPF nomination question

[P R N D]

Hi all, if never submit CPF nomination and pass away. Will the next of kin get the full amount?

I heard there will 1.5% charges on the amount withdrawn (to next of kin) by CPF board if no nomination made?

So $300k total sum to be withdrawal, $4.5 (1.5%) will be taken away by govt, is that right?

Correct if I'm wrong. Thanks in advance.

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[a4973]

answered in FAQ 5 https://www.mlaw.gov.sg/content/pto/en/deceased-cpf-estate-monies/information-for-next-of-kin-cpf-monies.html

 

[P R N D]

answered in FAQ 5 https://www.mlaw.gov.sg/content/pto/en/deceased-cpf-estate-monies/information-for-next-of-kin-cpf-monies.html

Found, thanks.

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[henrylbh]

Example: S$300k

First 1k = $24 (2.4%)
Next 9k= $135 (1.5%)
Next 200k= $1500 (0.75%)
Total: $300k the fees are $1659

Is my calculation correct?

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Wrong. $1,659 is the total fee on 210k .

 

[BBCWatcher]

Example: S$300k
First 1k = $24 (2.4%)
Next 9k= $135 (1.5%)
Next 200k= $1500 (0.75%)
Total: $300k the fees are $1659
Is my calculation correct?

No.

$300,000 = $1,000 + $9,000 + $240,000 + $50,000

$1,000 x 2.4% = $24
$9,000 x 1.5% = $135
$240,000 x 0.75% = $1,800
$50,000 x 0.45% = $225

Total Fee on $300,000 = $2,184 (= a 0.728% fee on that amount)

....But why do you ask? Just make a nomination!

 

[a4973]

Oh... I missed out the 50k.

Go to CPF building, the CPF officer (need 2) can be the nomination witnesses? I heard somewhere they can be the witness too right?

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i did a nomination at Bishan CPF.
the officer attending to me & i believe the supervisor of the team witnessed for me.

 

[henrylbh]

Oh... I missed out the 50k.

Go to CPF building, the CPF officer (need 2) can be the nomination witnesses? I heard somewhere they can be the witness too right?

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Wrong again. If you are referring to the first 250k, then you missed out 40k.

 

[henrylbh]

Go to CPF building, the CPF officer (need 2) can be the nomination witnesses? I heard somewhere they can be the witness too right?

Best is to sign the form at the Branch. The form not only requires 2 witnesses, but you must sign the form in the presence of both witnesses i.e. you can't sign first and later time ask A and another time ask B to sign as witnesses.

I was called to CPF Board and was asked where (meaning the place) I witnessed the signing and how I and nominee were related to the nominator etc

 

[Tiger9119]

Best is to sign the form at the Branch. The form not only requires 2 witnesses, but you must sign the form in the presence of both witnesses i.e. you can't sign first and later time ask A and another time ask B to sign as witnesses.

I was called to CPF Board and was asked where (meaning the place) I witnessed the signing and how I and nominee were related to the nominator etc

CPF staff who serve you can call some senior staff to be the witness. This is what they did for me when I was at CPF Tampines branch.

 

[henrylbh]

No.

$300,000 = $1,000 + $9,000 + $240,000 + $50,000

$1,000 x 2.4% = $24
$9,000 x 1.5% = $135
$240,000 x 0.75% = $1,800
$50,000 x 0.45% = $225

Total Fee on $300,000 = $2,184 (= a 0.728% fee on that amount)

....But why do you ask? Just make a nomination!

I applied Grant of LOA for an estate of about 450k and the legal fee is only $1250 net including signing of 2 oaths.

 

[Prof. Utonium]

Nominate where possible so you won't trouble your NOK in applying for LOA.

Nominations are free.

LOA and PT service costs money.

 

[henrylbh]

Nominate where possible so you won't trouble your NOK in applying for LOA.

Nominations are free.

LOA and PT service costs money.

With or without nomination, it has nothing to do with applying for LOA.

 

[hwmook]

LOA is to get back money from bank right?

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No, LOA is only if you never die but cannot handle your money then NOK need to do that to get the money.

 

[henrylbh]

LOA is to get back money from bank right?

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When a person with CPF dies, his money either goes to the nominee/s or the public trustee who would levy a fee to administer the distribution of the money.

If the deceased has any other assets (excluding CPF), then a grant of probate or grant of letter of administration is required depending on whether there is or no will.

 

[Prof. Utonium]

LOA is to get back money from bank right?

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Henry answered it quite well.

Banks may not necessarily need LOA. It depends on the sum left in the deposit. Below a certain amount, it won't be required. Best check with respective banks.

For other assets such as HDB would be required. Only if you have no wills.

Some insurance *may* require LOA/Grant. Although this applies to group insurance by employer. They may need black and white to cover their arse from future family disputes.

 

[P R N D]

Thanks all the info.

Done.

CPF staffs are really efficient & courtesy. Nowadays govt service improved alot compare to last century.

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[The_Davis]

if money goes into public trustee and no one claims, what will happen??

 

[henrylbh]

No, LOA is only if you never die but cannot handle your money then NOK need to do that to get the money.

Where you heard that? You mean LPA?

 

[henrylbh]

if money goes into public trustee and no one claims, what will happen??

They will search for beneficiaries before it becomes unclaimed monies.

 

[The_Davis]

What do you think? Burnt & Throw to sea?

Public trustee under Government, ministry of law.

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so.... go to where?