Trusts, Nominations and Succession: 20 Questions on Where Insurance Proceeds, CPF and Your Estate Go

Succession planning is the process of arranging, during your lifetime, how your assets will be transferred and managed after your death or loss of mental capacity. In Singapore, insurance proceeds, CPF savings and the rest of your estate follow three different legal routes, and a single will cannot cover all of them. The 20 questions on this page address common points on nominations, wills and intestacy, trusts and cross-border succession. Claims documents and procedures are covered in Claims, complaints and servicing: 20 questions, and ownership structures for large policies in Jumbo life and high net worth: 18 questions. This page is general information and does not constitute legal advice.

Nominations

What are the two kinds of insurance nomination in Singapore, and how do they differ?

They are the trust nomination and the revocable nomination. After making a trust nomination, the policyholder gives up full ownership of the policy and the policy benefits belong to the beneficiaries. Under a revocable nomination, the policyholder keeps ownership and can change or revoke beneficiaries at any time without their consent (LIA, 2026-03). Both must be made by a policyholder aged 18 or above who is also the life assured.

Whom can a trust nomination name, and whose consent is needed to revoke it?

Only a spouse and/or children. Revoking a trust nomination, changing the policy, taking a policy loan or surrendering the policy requires the written consent of every beneficiary (for those under 18, a parent or guardian who is not the policyholder consents on their behalf), or of any trustee who is not the policyholder. The nomination must be witnessed by two people aged 21 or above who are neither beneficiaries nor the spouse of a beneficiary.

With no nomination and no will, what happens to the insurance proceeds?

Under section 150 of the Insurance Act 1966, the insurer may pay up to S$150,000 to a "proper claimant" (such as a spouse, parent, child or sibling) without a Grant of Probate or Letters of Administration; anything above that is paid to the court-appointed estate administrator. If there is a will and the insurer has been notified, the proceeds may be distributed under the will.

Why are CPF savings not governed by a will?

According to the CPF Board, CPF savings do not form part of the estate and so cannot be dealt with by a will; a separate CPF nomination is needed. Without a CPF nomination, the savings pass to the Public Trustee and are distributed under intestacy rules (Muslim law for Muslims), which can take longer.

Can a policy bought with CPF or SRS funds carry a trust nomination?

Generally not. LIA states that CPF Investment Scheme (CPFIS) policies, Dependants' Protection Scheme (DPS) policies, SRS policies, Integrated Shield Plans and CareShield Life supplement plans do not allow trust nominations, although most allow revocable nominations; annuities under the CPF Retirement Sum Scheme allow neither kind.

Further reading: Nominating insurance beneficiaries

Wills and intestacy

What are the basic requirements for making a will in Singapore?

Under the Wills Act 1838: a will made by a person under 21 is not valid (section 4); a will must be in writing, signed at the end by the testator, and signed or acknowledged in the presence of two or more witnesses present at the same time, who sign in the testator's presence (section 6); and any gift in the will to a witness or the witness's spouse is void (section 10). Where cross-border assets or complex family relationships are involved, the will should be drafted by a lawyer.

Without a will, in what shares is the estate distributed?

Under the Intestate Succession Act: if only a spouse survives, the spouse takes everything; if a spouse and children survive, the spouse takes half and the children share the other half equally; if only children survive, they share equally; if a spouse and parents survive (no children), each side takes half; if only parents survive, they share equally (MoneySense, 2026-09-28). Muslim estates are dealt with under Muslim law.

How are a foreigner's assets in Singapore inherited?

A foreigner's assets in Singapore generally require a Singapore Grant of Probate or Letters of Administration before they can be dealt with; grants from some Commonwealth jurisdictions can be resealed in Singapore. Which country's law applies depends on factors such as the type of asset and the deceased's domicile, so consult a Singapore lawyer.

Does Singapore still have estate duty?

Not under current rules. IRAS states that estate duty is no longer levied for deaths on or after 2008-02-15. However, the country where the deceased lived or where assets are located may levy estate or inheritance tax, so cross-border families need professional advice in the relevant jurisdictions.

How does a Lasting Power of Attorney (LPA) differ from a will?

An LPA applies while you are alive but have lost mental capacity, allowing appointed donees to manage your personal welfare and property and affairs; a will distributes your estate after death. Under the Mental Capacity Act, anyone aged 21 or above may make an LPA, which must be certified by a certificate issuer. A certificate issuer may be a doctor accredited by the Public Guardian, a practising lawyer or a registered psychiatrist (MSF / OPG, accessed 2026-10); fees depend on the certificate issuer's quote.

Trusts

Who regulates trust companies in Singapore, and how do you check a licence?

Trust companies are licensed under the Trust Companies Act 2005 and supervised by MAS. To check whether a company holds a trust business licence, search the MAS Financial Institutions Directory. Some institutions, such as banks, are exempt trust companies and may provide trust services within the scope of their permission.

How does a policy trust differ from a trust nomination?

A trust nomination is a statutory nomination made under the Insurance Act for a single policy, with beneficiaries limited to the spouse and children, and is relatively simple to arrange. A policy trust usually means a licensed trust company holds or receives the policy benefits under a trust deed; the range of beneficiaries and the conditions and timing of distributions are more flexible, but there are set-up and annual fees.

How should revocable and irrevocable trusts be understood?

A revocable trust lets the settlor keep the right to revoke or amend the trust; it is flexible, but the assets are less fully separated from the settlor. Once an irrevocable trust is set up, the settlor generally cannot withdraw the assets unilaterally, so the separation is greater. The legal effects and tax consequences of each should be assessed by a lawyer.

Can a trust protect assets from creditors?

It depends. LIA notes that policy benefits under a trust nomination are generally protected in bankruptcy, but if assets were transferred to avoid known debts, the court may set the arrangement aside. A trust should not be understood as shielding assets from debts or from division of matrimonial assets in every case.

What roles and types of fee does setting up a trust usually involve?

The roles are the settlor, the trustee and the beneficiaries, with an optional protector. Fee types usually include a set-up fee, an annual administration fee, transaction or distribution fees and legal fees; the amounts depend on the trust company's quote.

Further reading: Whole life insurance and policy trusts

Cross-border succession

How do beneficiaries in mainland China or Hong Kong claim proceeds from a Singapore policy?

They make a claim with the Singapore insurer. The basic documents listed by LIA include the death certificate, the death claim form, a FATCA and CRS tax residency self-certification, the claimant's identity document and proof of relationship. For a death overseas, relevant permits are also needed, and overseas documents must be notarised or authenticated and translated into English (LIA, 2025-11).

How do family offices, trusts and insurance fit together?

A common approach is for a trust or family holding entity to hold the policies and family office assets, with insurance providing liquidity on death. A single family office applying for the 13O fund tax incentive must have designated investments of at least S$20 million at application and at the end of each basis period, and at least S$50 million for 13U. Single family office funds approved on or after 2026-08-01 must hold a private banking account with a MAS-licensed financial institution at application and in each basis period; funds already enjoying the incentive have transitional arrangements (MAS FDD Cir 05/2026).

How does a change in marital status affect policies and nominations?

A revocable nomination can be changed at any time after divorce, remarriage or the birth of a child. Under a trust nomination, the spouse remains a beneficiary and revocation needs their written consent. After marriage or divorce, review your insurance nominations, CPF nomination and will together, and consult a lawyer where children from a remarriage or a prenuptial agreement are involved.

What role does insurance play in succession planning, and what are its limits?

Its role is to provide a definite sum of cash on death which, with a nomination, can bypass the probate process, making it easier to pay debts and living expenses. Its limits are that it covers only policy assets, cannot deal with property, shareholdings or the rest of the estate, and cannot replace a will, an LPA or family governance arrangements.

When do you need a lawyer rather than only a financial adviser?

See a lawyer for making a will, setting up a trust, cross-border assets, blended families, children born outside marriage, succession of business shareholdings or Muslim estates. A financial adviser can help with insurance and nomination arrangements, but drafting legal documents and judging their validity is a lawyer's professional domain.

Further reading: Succession and family governance

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