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Singapore Guide

What Happens to Your Money When You Pass Away

Coverage

CPF, Insurance, Property

Focus

Estate & Legacy

When someone passes away, their assets, CPF savings, and liabilities are handled under specific Singapore rules. Understanding this helps families avoid confusion, delays, and unnecessary stress.

Core Education

What Happens After Death - Financial Overview

The Financial Journey After Death

1

Death Occurs

Process begins

2

Assets Identified

Bank, investments, property

3

CPF Handled Separately

Does not follow will

4

Debts Assessed

Liabilities reviewed

5

Estate Distributed

To beneficiaries

6

Accounts Closed

Process complete

Key Understanding: Different assets follow different rules. CPF, insurance with nominations, and jointly-held property may bypass the will entirely.

Asset Categories

What Counts as 'Your Assets'

Understanding how different types of assets are handled after death.

Bank Accounts

Cash, savings, fixed deposits in your name.

Goes through: Estate

Nomination: No (follows will)

CPF Savings

OA, SA, MA, CPF LIFE balances.

Goes through: CPF Nomination or Public Trustee

Nomination: Yes (critical)

Insurance Payouts

Life insurance, accident insurance proceeds.

Goes through: Nominee or Estate

Nomination: Yes (recommended)

Investments

Stocks, funds, robo-advisors, brokerage accounts.

Goes through: Estate

Nomination: Some platforms allow

Property

HDB flat, private property, landed.

Goes through: Depends on ownership type

Important: Joint tenancy vs Tenancy-in-common

Business Interests

Company shares, partnerships, sole proprietorship.

Goes through: Estate (complex)

Note: May need business succession plan

Overseas Assets

Foreign property, bank accounts, investments abroad.

Goes through: Subject to foreign laws

Complexity: May require separate probate

Very Important

What Happens to CPF Savings After Death

CPF savings follow their own rules, separate from your will.

CPF Distribution Flow

With CPF Nomination

1

CPF savings identified

2

Paid directly to nominees

Faster, bypasses estate

Benefit: Nominees receive funds within weeks, not months.

Without CPF Nomination

1

CPF goes to Public Trustee

2

Distributed under intestacy rules

3

Delays possible

Risk: Your will does NOT control CPF distribution.

What About CPF LIFE?

  • Monthly payouts stop upon death
  • Remaining CPF LIFE balances may be paid to beneficiaries
  • Follows CPF nomination if made

CPF does not follow your will unless nominated.

Make Your CPF Nomination

Ensure your CPF goes to your intended beneficiaries

CPF Nomination Portal

Insurance Proceeds

What Happens to Insurance Payouts

With Nomination

  • Paid directly to nominee
  • Does not form part of estate
  • Faster payout
  • Generally not subject to creditors' claims

Without Nomination

  • Paid to estate
  • Subject to probate
  • Delays possible
  • May be used to settle debts first

Types of Insurance Covered

Life Insurance

Term life, whole life, endowment

Accident Insurance

Personal accident policies

Critical Illness

If claimable before death

Property Matters

What Happens to Property After Death

Property ownership structure determines how it passes on.

Sole Ownership

Property owned by one person only.

Result: Goes into estate, distributed via will or intestacy rules.

Joint Tenancy

Common for married couples.

Result: Surviving owner automatically inherits the whole property.

Tenancy-in-Common

Owners hold distinct shares.

Result: Your share goes into estate, not automatically to co-owner.

Property structure matters more than people realise. Many assume their property will automatically go to their spouse, but this depends entirely on how the property is held. Check your property title to understand your ownership structure.

Myth-Busting

What Happens to Debts After Death

Common Belief

"Family inherits the debt."

Reality

Debts are paid from the estate, not automatically passed to family.

How Different Debts Are Handled

Mortgage

If there is mortgage protection (HPS or private MRTA), the loan is paid off. Without protection, the estate or co-borrower must continue payments or the property may be sold.

Personal Loans

Paid from the estate. If the estate is insufficient, the debt is typically written off (unless there is a guarantor).

Credit Cards

Outstanding balance is settled from the estate. Supplementary cardholders are generally not liable for the principal's debt.

Business Guarantees

Caution: Personal guarantees for business loans can become a liability. The guarantee obligation may pass to the estate.

Key Point: If the estate is insufficient to cover all debts, liabilities are settled up to the estate value. Family members are generally not personally liable for the deceased's unsecured debts.

Practical Guide

Step-by-Step Financial Checklist After Death

Immediately

Obtain death certificate (multiple certified copies)

Secure important documents (will, insurance policies, property titles)

Locate any safe deposit boxes

Shortly After (First Few Weeks)

Notify banks and request account freeze

Notify insurance companies and initiate claims

Notify CPF Board

Check for CPF and insurance nominations

Identify all assets and liabilities

Later (Weeks to Months)

Apply for Grant of Probate (if will exists) or Letters of Administration

Settle outstanding debts from estate

Distribute estate to beneficiaries

Close accounts and cancel subscriptions/utilities

File final tax return (if applicable)

High Trust Section

Common Mistakes Families Make

Understanding these issues can help you plan ahead.

Gap

No CPF nomination

CPF goes to Public Trustee instead of intended beneficiaries, causing delays.

Gap

Assuming will covers CPF

Your will does NOT control CPF distribution. CPF requires a separate nomination.

Gap

Not knowing where accounts are

Family struggles to locate bank accounts, investments, and policies.

Gap

Mixing personal and estate funds

Using deceased's accounts before proper authorization creates legal issues.

Gap

Delaying notifications

Late notification to banks/insurers can complicate claims process.

Gap

Not understanding property ownership type

Joint tenancy vs tenancy-in-common determines how property passes on.

Gap

Ignoring overseas assets

Foreign assets may require separate probate in that jurisdiction.

Gap

Leaving everything undocumented

No list of accounts, passwords, or instructions creates chaos for family.

Many of these issues can be addressed early with clear legacy and family estate planning.

Neutral Framing

How Planning Helps

Today

Clear Nominations

Clear Instructions

Less Stress for Family

Planning is about clarity, not control.

It is about making things easier for the people you care about during a difficult time.

Thinking beyond today

Legacy planning is not just about documents. It is about clarity, continuity, and care for the people you leave behind.

PM us

Planning for Legacy and Family Estate

Understanding what happens to your finances is the first step. Thoughtful legacy and estate planning helps ensure your wishes are clear, your family is supported, and unnecessary stress is avoided.

PM us

For general education and planning discussion only. This page does not constitute legal advice.