Recently I received some questions from one of my readers of the blog. He asked if a person dies without a Will, how will the investments under joint account be distributed? I think this might be an interesting question to many.
Unit Trust bought under Cash with a local bank and subsequently the sibling of the deceased was added as a joint owner and the decease still remained as Main applicant.
In this example, if unit trust was bought under joint name, the account will be handled according to the terms and conditions of the account. Generally, the law of survivorship applies. That means the surviving party will take over the investments.
However, if the joint account holder is a minor (below age 21), things can become complicated as the minor cannot give further instruction to the bank or unit trust platform.
Nevertheless, you should not assume it is based on survivorship, and it is important to go through the terms and conditions of that particular account.
CPF board close the investment account under the agent bank, within these period of time before the grant of probate, the bank should not release any cash holding investment Unit trust fund to the other joint account party as the fund was under Subsidiary Singapore Tax Certificate (Designated Unit Trust Pursant to Section 35(12) of the Singapore Income Tax Act)
First of all, if a person passes away without a will, there is no grant of probate, it should be called “letter of administration”. Secondly, CPF Investment account cannot be held under joint name. So I think you may have some wrong information from other sources.
By and large, unlike CPF account, the distribution of CPFIS investments is not covered under CPF nomination. When a member passes away, his investments under the CPF Investment Scheme (CPFIS) and any cash held in his Investment Account with his agent bank will form part of his estate. The estate administrator/executor may claim these directly from the agent bank for distribution to the beneficiaries of the deceased’s estate. You can refer to my early article “What happens to investments under the CPF Investment Scheme (CPFIS) when a member passes away” for more information.
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