Why are CPF Investment scheme (CPFIS) investments not distributed to nominees in the CPF nomination?
CPF Investment Scheme (CPFIS) investments are not covered under CPF nomination. When a member passes away, his CPFIS investments1 and any cash balance in his Investment Account will form part of his estate. Doing so allows beneficiaries of the estate to decide how best to manage these assets, including the preferred timing for the sale of assets such as unit trusts and stocks. These decisions should be made by the beneficiaries as the decisions could affect the value of the CPFIS investments. CPF monies covered under CPF nomination can then be disbursed quickly without having to await the beneficiaries’ decision on the CPFIS investments.
1 Except for insurance policies where the policyholder has made an insurance nomination with the respective insurance company. The nominated beneficiaries can contact the insurance company to claim the death benefits.
