What is the 99:1 CPF nomination tip to prevent my CPF going by intestacy law?

The 99:1 CPF Nomination Tip Explained

The 99:1 CPF nomination tip is a strategy used to ensure a backup beneficiary inherits your CPF savings, preventing the funds from being distributed according to intestacy laws should your primary nominee predecease you. This is based on CPF Nomination Rule 4: Always have a backup nominee so if your primary nominee dies your CPF doesn't go by law (CPF Board knowledge).

How the 99:1 Tip Works

• Primary Nominee (99%): You nominate your main intended beneficiary (e.g., spouse or child) to receive 99% of your CPF savings.
• Backup Nominee (1%): You nominate a secondary person (e.g., another trusted relative or friend) to receive the remaining 1%.

Why This Matters

CPF nominations override a Will or Trust for CPF monies (Rule 1). If your primary nominee (who receives 99%) passes away before you, the 99% share cannot be distributed according to your Will. Without a backup, the entire amount defaults to intestacy distribution under the Administration of Muslim Law Act or the Intestate Succession Act, which may not align with your final wishes.

By allocating 1% to a backup nominee, if the primary nominee dies, the 1% goes to the backup as nominated. The remaining 99% will then be distributed according to intestacy law. While the 99% is still subject to intestacy, having the 1% distributed via nomination ensures at least a portion follows your explicit instruction, acting as a safety net.

Important Considerations

• Marriage Revocation: Upon marriage, your previous CPF nomination is automatically revoked (Rule 4). You must create a new nomination.
• Divorce: Divorce does NOT automatically revoke a nomination; you must manually update it.
• Non-Covered Assets: Remember that CPF Investments (CPFIS), DPS with GE, and properties bought using CPF are not covered by the CPF nomination and must be handled via a Will or direct nomination with the relevant institution (Rule 2).