Why consider distributing your CPF savings through a Trust upon your demise? Some concerns you may have:
For aged parents or spouse, they may be easily scammed or there may be undue influence from others. There could also be concerns on their mental capacity at the point of your demise.
Your beneficiaries may not be used to handling big sums of money, resulting in squandering everything within a short period of time.
You want to control who to give for the remaining monies that they did not finish using up VS leaving it to the beneficiary’s estate to distribute your monies according to their intentions.
By appointing a proper Trustee in a Trust deed (and Letter of Wishes), you ensure that the monies meant for your beneficiaries are safeguarded for them. The beneficiaries also have legal recourse if there is a breach of fiduciary duties.
Your CPF savings meant for your intended young beneficiaries will be placed with the Public Trustee’s Office (PTO). PTO will only allow partial release if the guardian can prove significant financial hardship.
The individual trustee will be legally responsible to hold and distribute your CPF savings (upon your demise) according to your intentions.
A Corporate Trustee will be suitable if you have no one in mind. Corporate Trustee can last many years.
You can stipulate the amount they receive on regular basis to prevent over-spending. Instalments can be monthly, quarterly or annually instead of one lumpsum.
If the primary beneficiaries do not fully utilise the monies, the remaining money will go to your choice of substitute beneficiaries VS their choice of beneficiaries.
Your guardians will have easier access to the CPF monies left for your minor children through your Trust for their maintenance and care. Your appointed Trustee will follow your intentions to distribute monies for their needs.
Instead of a lump sum, you can choose to give your CPF savings on a periodic basis; monthly, quarterly, half-yearly, or even yearly, minimizing the risk of your CPF savings being squandered away.
Continue to provide for your loved ones, even after your lifetime, by allowing your CPF savings to be distributed periodically to your named beneficiaries.
Find out more at Why set up ProviTrust
If you wish to have a free consultation, do email us at [email protected] or via the contact form below, and we will get in touch with you.
EPPL Digital is a new digital platform created and owned by EPPL to facilitate estate planning and trust solutions such as ProviTrust.
Precepts Trustee Ltd (Previously known as Rockwills Trustee Ltd.) is a licensed trust company (Trust Business License No. TC000040) regulated by the Monetary Authority of Singapore (MAS).