PKWA LAW QUOTED IN STRAITS TIMES ARTICLE ON CPF MONIES THAT ARE UNCLAIMED
PKWA Law’s family lawyer Charlene Nah was quoted in the Straits Times article on CPF monies that were left unclaimed because no nominations were made. This article illustrates the importance of making your CPF nomination.
Below is an extract from the Straits Times article with comments from Charlene:
A total of $211 million, largely made up of Central Provident Fund (CPF) monies, has been left unclaimed with the Insolvency and Public Trustee’s Office over the last six years. The sum was left by people who died without nominating a benefactor.
Ms Charlene Nah, associate director at PKWA Law, said small family units suffering successive deaths within a short period of time may be one reason for the increase in unclaimed CPF monies from the estates of the dead people.
In such cases, said Ms Nah, before the surviving family member can claim his share of the dead person’s CPF monies, he dies as well.
Ms Nah said some benefactors could also be deemed unsuitable to receive the monies as a result of mental health issues. “The Public Trustee does not release monies to beneficiaries who lack mental capacity, unless the mentally incapacitated person has a deputy appointed by the court or donee appointed under a Lasting Power of Attorney (LPA) to make such claims on their behalf,” she said.
In the absence of an LPA, Ms Nah said the benefactor will have to apply for a deputyship court order, which will take some time to be issued. The PTO would not be able to release the unclaimed CPF monies before the court order is issued, she added.
Said Ms Nah: “Having unclaimed CPF funds is an issue which policymakers may wish to look into to make sure that the hard-earned CPF money would go to the deceased person’s love ones.”
Source: The Straits Times
Author : Janice Tai
Article can be read here.