When it comes to estate planning and wealth transfer, most people immediately think of drafting a will or Lasting Power of Attorney (LPA). It’s a natural first step as a will details how your assets are distributed after you’re gone. However, there’s an equally crucial component that deserves just as much attention: trust. In this article, we’ll explore why trust matters, scenarios where it shines, and the profound emotional impact it has on your loved ones. What is Trust? At its core, trust is a legal and financial arrangement that allows you to transfer assets like property, investments, or ..read more

Investment proceeds under CPF Investment Scheme (CPFIS) are not covered under the CPF nomination.  If you pass away, your investments under the CPFIS and any cash held in his Investment Account with your agent bank will form part of your estate. The estate administrator/executor may claim these directly from the agent bank for distribution to the beneficiaries of the deceased’s estate. Upon death, the CPFIS investments and cash in your Investment Account would cease to be protected and might be used to satisfy the deceased member’s creditors’ claim in accordance with the Probate and ..read more

In my recent article How will your CPF savings be distributed if you are no longer around, I explained that if you pass away without proper Nomination, your CPF savings (Ordinary, Special, Medisave and Retirement Accounts) will be transferred to the Public Trustee for distribution to your family under the intestacy laws. Under Intestacy Law, if you have no spouse, no children, no parent, no brother or sister, no grandparent, no uncle or aunt, the money will go to the government. Under the Civil Law Act amendments approved by Parliament yesterday, the Government will be able to distribute CPF s ..read more

Picture this: you’ve worked hard your entire life, accumulating assets and building a legacy. But what if, upon your passing, certain assets are left out of the will? These assets will fall into intestacy. In Singapore, The Intestate Succession Act (Cap. 146) applies in these situations. According to the law, regardless of what the person (non-Muslim) may have intended, the remaining assets will be distributed as below: If you do not have a will, the law decides how your assets are distributed, even if the consequences may seem unfair and undesirable. So what to do if you want to decide how ..read more

Picture this. One day, you’re unable to make the crucial life decisions that shape your future, from managing your finances to selecting your healthcare. Sounds scary, right? Let’s take a closer look at Madam Chung Khin Chun’s story. Madam Chung, an elderly Singaporean woman, was initially befriended by Mr Yang Yin, a former tour guide from China. Over time, he gained her trust and gradually took on roles as her tour guide, legal advisor, and personal representative. Mr Yang Yin utilized his position to manipulate Madam Chung, ultimately deceiving her and misappropriating her assets. He alleg ..read more

If you have made will, you know the importance of making your asset distribution clear so no confusion for your family members. But have you made an insurance nomination previously? Do you remember who were the beneficiaries? Do you need to revoke the nomination before the instruction in the will takes effect? In general, your Will overrides the insurance nomination made under your Insurance Policy. But this will not work in two scenarios: If your insurance nomination creates a Nomination under Section 49L Insurance Act or You have made a specific assignment. Understand implied trust A ..read more

In conjunction with the implementation of the new legal provisions in the Insurance Act on beneficiary nominations, the Life Insurance Association Singapore (LIA) issued a consumer guide, Your Guide to the Nomination of Insurance Nominees, in 2009. The Guide has since been revised, with effect from 1 January 2013, to reflect the FATWA ruling that Muslim policy owners may make both Trust and Revocable nominations over their life policies or accident and health insurance policies with death benefits. The revised Guide can be found here. The post Revised Guide to the Nomination of Insurance Nomin ..read more

Recently I received some questions from one of my readers of the blog. He asked if a person dies without a Will, how will the investments under joint account be distributed? I think this might be an interesting question to many. Question 1: Unit Trust bought under Cash with a local bank and subsequently the sibling of the deceased was added as a joint owner and the decease still remained as Main applicant. In this example, if unit trust was bought under joint name, the account will be handled according to the terms and conditions of the account. Generall ..read more

Most of the HDBs in Singapore are held in joint tenancy. Under joint tenancy, if one of the flat owners passes away, the deceased joint tenant’s share or interest in the flat will be passed on to the surviving joint tenant(s). For example, husband and wife (both above 21 years old) are holding the flat under joint tenancy. If the husband passes away, the surviving wife can take over the flat as the sole lessee if she is a Singapore Citizen or Singapore PR. If the lease had already been issued for the flat, a legal document known as the Notice of Death instrument will have to be prepared and lo ..read more