Forum: Let banks disburse money to nominees just like CPF

For most Singaporeans, the disbursement of their biggest two assets when they die is already in place. Namely, Central Provident Fund (CPF) monies will go to their CPF nominees. Their home, if under joint tenancy, will also likely be left to a surviving spouse. Most people do not need a will to facilitate their transfers.

But this is not the case for cash in a bank account. To release such deposits, a bank needs a letter of probate from the executor of an estate. Getting this letter takes time and effort. There are also legal costs involved. 

A not-so-well-off relative died in December, and the family has, to date, spent almost $3,000 trying to withdraw funds from his bank deposit. I am not even sure if he had enough in the bank to cover the legal fees incurred.

My relative believed that by doing up a simple will (sample downloaded from a bank), he could save his family some costs and effort. But it was not so, as shown by the long process involved. He probably should not have done a will and let the intestate process take over and save his beneficiaries and witnesses for his will the hassle.

Given Singapore’s ageing population and expected rise in the number of deaths, banks in time to come will have to devote more manpower to process letters of probate submitted by executors. 

If only all banks had an equivalent cash nominee provision like the CPF, then when a bank account holder dies, the funds in the account would just be distributed according to the beneficiary nominated. 

I think the Government should study if this should be legislated.

Tay Kian Tiong