After an unexpected passing, how can family members legally and smoothly withdraw savings or manage investments?
The Singapore government’s official My Legacy platform provides clear guidance on this.
This article explains the key steps in a simple way to help families plan ahead.
Step 1: Confirm if There Is a Will
If a will has been made, the estate will be distributed according to the will. The executor named in the will needs to complete the following process:
1. Apply for a Grant of Probate: Submit the original will, death certificate, and other documents to the Family Justice Courts. Once certified, the executor is authorized to manage the assets.
2. Contact Financial Institutions: With the certified documents, the executor can apply to banks or investment firms to withdraw the funds.
If there is no will, the assets will be distributed according to the Intestate Succession Act. Relatives such as the spouse and children will need to apply for Letters of Administration to proceed.
Step 2: Managing Central Provident Fund (CPF) Savings
Savings in a Singapore Central Provident Fund (CPF) account are not automatically covered by a will. Beneficiaries must be appointed through the following methods:
1. CPF Nomination Scheme: Appoint beneficiaries in advance through the official website or offline services. The savings will be distributed directly to them without going through probate.
2. If no nomination is made, the CPF savings will be transferred to the Public Trustee’s Office for distribution according to the law, but this process involves higher fees and takes longer.
Step 3: Joint Accounts and Insurance Claims
• Joint Bank/Investment Accounts: These are typically inherited automatically by the surviving account holder, who can operate the account directly.
• Insurance Policies: Beneficiaries can claim the payout directly from the insurance company by presenting the death certificate and the original policy document.
Step 4: Grant of Probate and the Public Trustee’s Office
If the total value of the estate exceeds S$50,000 or there is no will, an application for a Grant of Probate or Letters of Administration must be made through the court. The process can take several months and requires the submission of the following documents:
• Death certificate
• Proof of relationship (e.g., marriage certificate, birth certificate)
• List of assets (bank statements, investment proofs, etc.)
For small estates (valued under S$50,000), the Public Trustee’s Office can be engaged to simplify the distribution process, though a small fee is required.
Planning Ahead: Reducing the Burden on Your Family
1. Organize Important Documents: Keep your will, account information, insurance policies, and other key documents in a safe place and inform your family of their location.
2. Use the ‘My Legacy’ Platform: This platform provides will templates, CPF nomination guides, and FAQs to help you plan ahead.
3. Update Information Regularly: Update your will or list of beneficiaries promptly following significant life events such as marriage or the birth of a child.
Conclusion
The unexpected can happen, but planning ahead can significantly reduce the administrative and emotional burden on your family. Use the ‘My Legacy’ platform to understand the detailed processes and communicate with your family early to ensure a smooth inheritance.
The content of this article is based on current Singaporean law and information from the ‘My Legacy’ platform. For specific cases, it is advisable to consult a legal or financial advisor.
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