Is making a CPF nomination free?

CPF Nomination Cost

Making a CPF nomination is free of charge for Singapore Citizens and Permanent Residents. There are no administrative fees or charges imposed by the CPF Board for submitting or updating your nomination form.

Key Aspects of CPF Nomination

• Process and Cost: The nomination process, whether done online via the CPF website or by submitting a physical form, incurs no monetary cost. This contrasts with other estate planning tools like a Will, which typically involves legal fees.
• Binding Nature: A valid CPF nomination overrides any instructions in a Will or Trust regarding CPF monies. This is a crucial point, as the nomination is the primary directive for the distribution of your CPF savings upon death (Source: CPF Board).
• Exclusions: While the nomination itself is free, it is important to note that certain assets are not covered by the CPF nomination and must be handled via a Will or direct nomination with the provider:
• CPF Investment Scheme (CPFIS) monies (must be included in a Will).
• Designated Policies under the CPF-related insurance schemes (must be nominated directly with the insurer, e.g., Great Eastern for DPS).
• Properties purchased using CPF (governed by Will or intestacy law).
• Liquidity and Succession: The nomination ensures that the funds are distributed according to your wishes, bypassing the potentially longer and more costly process of estate administration that might occur without one. For instance, if you have money in your Ordinary Account (OA) earning 2.5% and Special Account (SA) earning 4% (before age 55), a nomination ensures these funds pass directly to your beneficiaries.

Important Consideration: While the nomination is free, it is automatically revoked upon marriage. You must manually update your nomination after marriage or divorce to ensure your wishes are correctly reflected.