Hi friends,
In my last email, I shared the first estate planning mistake I commonly see — not having a Will.
Today, I want to talk about another issue I’ve encountered many times over my 16 years meeting families in Singapore.
CPF nominations.
Many Singaporeans assume that when they pass away, their CPF savings will automatically go to their spouse.
But CPF actually works differently.
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💡 Mistake #2: Not Making a CPF Nomination
Without a CPF nomination, your CPF savings do not automatically go to your chosen beneficiaries.
Instead, the funds will be distributed according to Singapore’s intestacy laws through the Public Trustee’s Office.
While the money will eventually reach your family, the process can take time and administrative fees may apply.
More importantly, the distribution follows a fixed formula which may not reflect your personal wishes.
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For example:
• You may want your spouse to receive the full CPF amount first
• You may want to allocate specific portions to children
• You may want to set aside something for elderly parents
Without a CPF nomination, these preferences cannot be carried out.
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Over the years, I’ve also met clients who were surprised to discover they had never updated their CPF nomination after major life changes such as:
• Marriage
• Divorce
• Having children
These moments are usually when CPF nominations should be reviewed.
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Estate planning is not just about large assets or complex structures.
Sometimes, it is simply about ensuring the instructions you intend are clearly documented.
Small steps can make a significant difference for the family members you leave behind.
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In the next email, I’ll share Estate Planning Mistake #3, which involves assets many families forget to plan for.
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If you'd like a second opinion on your CPF nomination or estate plan, you're welcome to send me a WhatsApp message.
Happy to share how most families in Singapore structure their plans.
To a strong and lasting legacy,
Edward Shee (施文山)
CFP, MDRT 2023/2025, IBFA, AEPP
Associate Director, Financial Advisory
RNF No: SBS200040073
Synergy Financial Advisers Ltd
M +65 9048 2463 | W [email protected]
A 51 Bras Basah Rd, #07-03, Lazada One, Singapore 189554
Disclaimer
The information provided in this article is for general informational and educational purposes only and does not constitute financial, legal, or tax advice. The views and opinions expressed are those of the author and do not necessarily represent the views of Synergy Financial Advisers Pte Ltd.
Financial planning decisions should always be made based on your individual circumstances. You are encouraged to seek personalised advice from a qualified financial adviser before making any financial or estate planning decisions.
Edward Shee Boon Sun is a licensed representative of Synergy Financial Advisers Pte Ltd.