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Writer's pictureChloe Tay

The benefits of nominating beneficiaries

Updated: Jan 18, 2021

Almost everyone buys policies. But do we also make it a point to nominate beneficiaries? Compared to Will-writing which costs money and tends to be more troublesome, making nominations for your policies and CPF monies is as easy as it can get!


Will-writing is probably the most common Estate Planning method that we know of. However, if you recall from Oct 2017’s Monthly Digest, CPF savings cannot covered under your Will. And having to constantly update your Will each time you purchase a new policy, may not be the most practical option. Hence, Estate Planning needs to go beyond just having a Will, and Nominations tend to be just as necessary.


Part One:



1. Trust (irrevocable) Nomination

2. Revocable Nomination


Part Two:

  • Cash Nomination (the default nomination type): Your beneficiaries will receive your CPF savings in cash via cheque/ GIRO.

  • Enhanced Nomination Scheme (ENS): Your beneficiaries will receive your CPF savings in their CPF accounts.

  • Special Needs Saving Scheme (SNSS): Beneficiaries who are children with special needs, can receive their deceased parents’ CPF savings on a monthly basis.


Part Three:

Other common considerations

Key benefits of making a nomination

  • Your beneficiaries will receive a significantly speedier payout (average turnaround time of 5 working days after the submission of complete paperwork). In contrast, the hassle of getting a court-appointed executor (usually a lawyer) to apply for the Grant of Probate or the Grant of Letters of Administration (which cost more than $1,000) to distribute your policies’ proceeds, can take 6 months.This can make a whole world of difference if your family has on-going expenses such as family allowance, an outstanding loan, your children’s education etc. Also, funeral expenses can easily cost $10,000.

  • You minimize any potential for conflict in your family, as all proceeds will be automatically paid out to your beneficiaries, based on the percentage share that you have allocated. In contrast, there is usually much chaos and confusion when assets are distributed by default, in accordance to the ISA.

If you would like to get started on your nominations, or maybe you are unsure how to do so, simply contact Chloe for a quick and easy walkthrough. Remember, you want to leave your family a loving legacy, and not a legal mess.

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