There are two good reasons to do so:

There have been cases where a beneficiary receives money and then squanders it on an expensive holiday or a luxury car. Meanwhile, his CPF account has hardly enough money to see him through his old age or meet any big medical bills incurred by him or his family members.

A CPF member may have a mentally or physically handicapped child who will probably have no CPF at all. Allowing the member to transfer the money to the handicapped child's CPF account when he dies will ensure the child will always have an income when he reaches old age. Putting the money with a trustee is not a solution as very few can be trusted as far as money is concerned - not even some lawyers.

Lee Hong Leong