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Sunday, 29 May 2016

When Our Spouses Are Not Retail Investors .. How???


Uncle8888 is still thinking of better way of passing on his wealth to his surviving spouse ... if any.

In the meantime, this is the confirmed approach via Enhanced Nomination Scheme (ENS).

Q

What is Enhanced Nomination Scheme (ENS) and when is it implemented?

 


Previously when a member passes away, the Board will distribute his CPF savings to his nominees as a lump sum in cash according to the proportion indicated in his nomination form.

The new ENS option (available from 1 January 2011) enables CPF members to transfer their CPF savings to their nominees’ CPF accounts when they pass away, subject to the current Full Retirement Sum or Enhanced Retirement Sum and the Basic Healthcare Sum (BHS) applicable to the nominees at the time of transfer.

To learn more about BHS, please visit here.​
 

Q

How does Enhanced Nomination Scheme (ENS) work?

 


At the point of nomination, a member can choose to have his CPF savings transferred to his nominees’ CPF accounts when he passes away via 2 options:

He can choose to credit his CPF savings into the nominee’s Special Account (SA) or Retirement Account (RA) first, up to the current Full Retirement Sum or Enhanced Retirement Sum. If there is excess beyond the current Full Retirement Sum or Enhanced Retirement Sum, it will then be credited to the nominee’s Medisave Account (MA), up to the Basic Healthcare Sum (BHS) applicable to the nominee at the time of transfer.

Alternatively, he can choose to credit his CPF savings into the nominee’s MA first, up to the BHS applicable to the nominee at the time of transfer. Any excess beyond the BHS applicable to the nominee at the time of transfer will then be credited into the nominee’s SA or RA, up to the current Full Retirement Sum or Enhanced Retirement Sum.

Any balance after crediting into the respective accounts as described above will be paid in cash to the nominee. All crediting and payment processes are subject to prevailing CPF rules.

A member is allowed to indicate a single mode of nomination, that is, either cash, ENS or Special Needs Savings Scheme, for the same nominee.

Please note that the monies credited to the nominee’s CPF accounts can only be used or withdrawn in accordance with CPF laws.

Monies credited via ENS to a nominee’s MA, where the nominee is also a self-employed person, can be used to offset his MA liabilities.

To learn more about BHS, please visit here.​
 

Q

What is covered by Enhanced Nomination Scheme (ENS)?

 


The following will be distributed to your nominees in the proportion as stated in the nomination form:

All the savings in the Ordinary, Special, Medisave and Retirement Accounts; and
Discounted SingTel (ST) shares

The following are not covered by ENS:

(a) Cash and investments held in the CPF Investment Account under the CPF Investment Scheme-Ordinary Account (CPFIS-OA);
 
(b) Investments held under the CPF Investment Scheme-Special Account (CPFIS-SA);
 
(c) Dependants' Protection Scheme (DPS) claim proceeds * ; and
 
(d) Properties bought with CPF savings **.

Assets marked (a) and (b) form part of the deceased's estate and will be distributed according to the laws governing the estate.

* For DPS claim proceeds, please approach your insurer, Great Eastern Life or NTUC Income for more information.

** These will be distributed according to the manner of holding. If the property is held as joint tenancy, the deceased’s share of the property will pass by operation of law to the remaining surviving owner(s). Otherwise, the deceased’s share of the property will form part of the deceased’s estate.

Watch our 5 minute webcast on CPF Nomination to find out more on how CPF savings are distributed when one passes away.
 

Q

Who are eligible to make an Enhanced Nomination Scheme (ENS) nomination?

 


All CPF members whose nominees are Singapore Citizens or Singapore Permanent Residents (SPRs) are eligible.

However, if the nominees are no longer Singapore Citizens or Singapore Permanent Residents (SPRs) at the time of disbursement, they will receive the bequeathed CPF monies in cash.
 

Q

How do I sign up for Enhanced Nomination Scheme (ENS)?

 


Please visit any of our CPF Service Centres to make an ENS nomination. Our Customer Service Executives (CSEs) will assist and explain the nomination process to you. They will also act as your witnesses for the nomination.
 

Q

Are there limits on the amount that can be allocated into a nominee's CPF accounts under Enhanced Nomination Scheme (ENS)? What are these limits?

 


Yes. A nominee can receive the bequeathed monies in his Special Account (SA)/Retirement Account (RA) up to the current Full Retirement Sum or Enhanced Retirement Sum and in his Medisave Account (MA) up to the Basic Healthcare Sum (BHS) applicable to the nominee at the time of transfer. These are also the existing limits for the Retirement Sum Topping-Up Scheme and the Medisave account (MA) respectively.​

To learn more about BHS, please visit here.
 

Q

What will happen to my existing nomination when I make a new Enhanced Nomination Scheme (ENS) nomination?

 


When you make a new ENS nomination, your existing nomination will be revoked. This will apply to all nominations made by you regardless of the mode of nomination (i.e., CASH, ENS or Special Needs Savings Scheme (SNSS)) for each of your nominee.

However, please note that the ENS nomination will not supersede your existing Minimum Sum Scheme nomination if you have made one.
 

Q

Can members choose how the bequeathed assets will be distributed between the nominee's CPF accounts under Enhanced Nomination Scheme (ENS)?

 


Yes. Members have 2 options: 

They may credit their savings to the nominee’s Special Account or Retirement Account (SA/RA) up to the current Full Retirement Sum or Enhanced Retirement Sum. Any excess will then be credited to the nominee’s Medisave Account (MA) up to the ​Basic Healthcare Sum (BHS) applicable to the nominee at the time of transfer. The balance will be paid to the nominee in cash.

Alternatively, they may credit their savings to the nominee’s MA up to the current BHS applicable to the nominee at the time of transfer. Any excess will then be credited to the nominee’s SA/RA up to current Full Retirement Sum or Enhanced Retirement Sum. The balance will be paid to the nominee in cash.

All crediting and payment processes are subject to prevailing CPF rules.

To learn more about BHS, please visit here.​
 

Q

Why are members not given a choice to nominate monies to the Ordinary Account of nominees under Enhanced Nomination Scheme (ENS)?

 


As ENS is meant to enable members to better provide for the retirement and healthcare needs of their dependants, monies cannot be nominated to the Ordinary Account.
 

Q

Is it compulsory to transfer my CPF savings to my nominees' CPF accounts upon death?

 


No, it is optional. You may wish to consider this option if you wish to help your nominees set aside more money for their retirement and healthcare needs.
 

Q

What will happen to the Enhanced Nomination Scheme (ENS) nominee's share of the CPF monies if he passes on before me?

 


If your nominee passes on before you, his share will be divided amongst the surviving nominees in the same proportion as their specified shares. You may revoke your nomination by submitting a Notice of Revocation of Nominations and we will pay your CPF savings to the Public Trustee for distribution to your family member(s) in accordance with the intestacy laws or inheritance certificate (for Muslims) in Singapore when you are no longer around. Alternatively, you can choose to make a new CPF nomination to have your CPF savings distributed according to your wishes.
 

Q

What will happen to the Enhanced Nomination Scheme (ENS) nominee's share of the CPF monies if he passes on after me but before the disbursement of my CPF savings?

 


If your nominee passes on after you but before the disbursement of your CPF savings, we will credit his share into his CPF account as specified in the nomination form, subject to the current Full Retirement Sum or Enhanced Retirement Sum and the Basic Healthcare Sum (BHS) applicable to the nominee at the time of transfer. These monies will form part of his own CPF savings. If the nominee has made a nomination himself, his CPF savings (including bequeathed CPF monies), will be distributed to his nominee. If the nominee has not made a nomination, his CPF savings (including bequeathed CPF monies), will be distributed by the Public Trustee according to the intestacy laws.

Any excess monies beyond the current Full Retirement Sum or Enhanced Retirement Sum and the Basic Healthcare Sum (BHS) applicable to the nominee at the time of transfer will be paid to the nominee's estate.

To learn more about BHS, please visit here.​
 

Q

How will my Enhanced Nomination Scheme (ENS) nominee receive my discounted SingTel (ST) shares?

 


Your ENS nominee will be given a choice to either (i) transfer the ST shares to his own Central Depository (Pte) Limited (CDP) account or (ii) ask CPF Board to sell the ST shares.

Under (ii), the proceeds from the sale of the ST shares, less transaction expenses, will then be credited to the nominee’s accounts in accordance to the chosen ENS option.
 

Q

How can I cancel my Enhanced Nomination Scheme (ENS) nomination?

 


You can make a new nomination which will supersede your earlier nomination. Alternatively, you can submit a Notice of Revocation of Nominations to revoke all your previous nominations.

Please note that if you have revoked your nomination, your CPF monies will be distributed by the Public Trustee according to the intestacy laws / Inheritance Certificate (for Muslims).

 

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