What happens to the deceased member's investments bought using his CPF savings?
CPF Investment Scheme (CPFIS) investments are not covered under CPF nomination. When a member passes away, his CPFIS investments* 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.
The estate administrator/executor can contact the respective product providers or agent bank to claim the investments and cash balance. These investments, cash balance and death benefits may be used to settle the deceased member’s debts in accordance with the Probate and Administration Act.
* Except for insurance policies where the member had made an insurance nomination with the respective insurance company. The nominated beneficiaries can contact the insurance company to claim the death benefits.
