Reminder: Update Your CPF Nomination

Finally, the official reply as to why CPF monies not covered by a Will....
....it should have been in the CPF website's FAQ in the first place....



Why CPF monies, share of HDB flats not automatically covered by a willPublished
Dec 24, 2015, 5:00 am SGT

We thank Mr Francis Cheng for his feedback ("Let CPF monies, share of HDB flats be covered by a will"; Dec 12).

Mr Cheng suggested reviewing the Central Provident Fund Act so that CPF monies can be covered by a will, and standardising the manner of holding of HDB flats so that owners can specify in their will how their interest in the flat can be distributed.

First, CPF monies are not meant to be part of a CPF member's estate. This has the advantage of not subjecting the member's CPF savings to his debts upon his death.

This is to protect the member's CPF monies and ensure that the member's dependants receive the monies. Moreover, if CPF monies are distributed according to a will, any disputes arising from the existence and validity of the will may delay the receipt of the CPF monies by the dependants.

It is, therefore, in the interests of both members and their dependants for un-nominated CPF monies to be distributed by a public agency outside of the member's estate, in accordance with intestacy laws.

If the CPF member wants his CPF monies to be distributed in accordance with a will, the member can make a nomination of the same beneficiaries as those under the will. Upon the member's death, the CPF Board will pay the CPF monies to the nominees directly.

Most CPF members who have died had earlier made a nomination, and we continue to encourage members to make a nomination in their lifetime.

Second, on standardising the manner of holding of HDB flats, Mr Cheng has rightly pointed out that the law allows co-owners of HDB flats to hold their property as either joint tenants or as tenants-in-common. This provides flat owners the flexibility to choose the manner of holding of their flat, based on their individual needs and circumstances.

If they would like their interest in the flat to be automatically transferred to their joint tenants, they can opt for joint tenancy.

On the other hand, if they prefer to make a will to specify how their interest in the flat will be distributed, they can opt for tenancy-in-common.

Standardising the ownership would result in flat owners no longer having a choice in the manner of holding of their flat.

Shaun Goh
Director
Income Security Policy Division
Ministry of Manpower

Lim Lea Lea (Ms)
Director (Branch Operations)
Housing and Development Board

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Such info should have a permanent place in the FAQs, and then prominent advisories be rendered on a frequent basis as a reminder.  Until now, much of it had been left to public speculation or for the individual to seek answers on their own....



Let CPF monies, share of HDB flats be covered by a will
Published
Dec 12, 2015, 5:00 am SGT

The Ministry of Law and Central Provident Fund (CPF) Board stated that the CPF Act does not recognise wills, and that the distribution of CPF monies must be by official nomination ("CPF monies not covered by a will"; Wednesday).

However, the rationale for this policy was not explained. Elderly and illiterate CPF members may not understand or know the procedures on the distribution of CPF monies upon their death.

The authorities should review the CPF Act and streamline it so that CPF monies can be part of the deceased's estate and covered by his will. This is to make it less of a hassle for his beneficiaries; after all, a will is a legal document.

There is a similar conundrum with HDB flats. If the flat was purchased under joint tenancy, the share of the flat belonging to the dead man automatically goes to the other joint tenants, regardless of whether the dead man left a will.

If the flat was purchased under tenancy-in-common, the dead man's share of the flat will be distributed according to his will or intestacy laws.

What are the reasons behind these different policies?
Tenants can change their flat ownership from joint tenancy to tenancy-in-common if all parties agree. But some owners may not wish to alert the other co-owners on the change, to avoid animosity.

To provide more flexibility to flat owners on how they want their assets distributed, the HDB should standardise ownership of flats to just tenancy-in-common agreements.

Owners can then specify in their will how their share of the flat will be distributed, say, after the death of the other co-owner or if the surviving co-owner sells the flat.

Francis Cheng

OCBC 360 Deposit Account

The last time Standard Chartered bank did a promo similar to this, our heads spin 180 degrees. Who has time to grabble with all the rules, and terms & conditions?  And with this kind of promotions, there is always tallying to do.  That can take days because it isn't unheard of that in the end, the tallies doesn't add up, leading to a flurries of call and emails to Customer Service hotline.  That is, if you have the patience to deal with the robotic "Press 1", "Press 2" instructions, and in the case of banks which are also resource-constrained, it is often a long wait before a human come on board to help.

For those with the time and inclination to pursue its many guideposts, the latest "Wake Up Your Money" OCBC promotion is better than letting idle money lie in a close-to-zero interest rate account.

For us, our heads already spin 360 degrees staring at this OCBC 360 deposit account ad.

Call us goons for skipping any chance to wake up our money, but we are trying to de-stress, not throw in more hassles into our already over-worked life.

Those Pesky Credit Card Annual Fees

Time is central to everything else in this universe.

We have learnt to respect time a little more this year than in past years.

And when it comes to keeping a lookout for credit card's annual fees, and the subsequent process of reversals that would be involved, the savings in time takes precedent over the savings in monetary rebates from credit cards which do not offer outstanding value benefits. 

Because life is busy in every other aspects, it helps too to remove this one bit of hassle.

We keep those cards which do not charge. It's a plus to never have to worry about forgetting to reverse annual fees.  Peace!

Citibank Statements

Now that Citibank is no longer tied up with Tangs, we are thinking of giving up their other credit cards. That would leave us with Citibank-M1 card only.

Reason?

Citibank has the most unattractive monthly statement set in monotonous grayscale that's a pain to read.  Somehow, the presentation reminds of an accounts ledger, and who likes to be reminded that checking through credit card statements is as much a chore as going through bookkeeping sequences?

It gets worse when you have more than one credit card with them.  To make out the head and tail, you have to mark it out on your own.

The other banks are able to produce statements that are way better.

Typically Citibank.

Took us years of feedback to finally see that their log-in no longer has that dreadful on-screen keypad that nobody likes — even if it is for security reasons.

It would probably take us another few years of feedback before we see an improvement in their current statement interface.  We kinda run out of steam - and patience - on this one.