“My child is under 18 years old and is the nominee for my EPF and insurance, and I appoint my sister as the executor of my Will, will the savings from my EPF and insurance payout go to my sister?”
This is a common concern for parents planning their estate. Let’s clarify the roles involved and how they affect the distribution of funds:
Understanding Key Roles:
Executor: The Executor is responsible for carrying out the instructions outlined in the Will and managing the estate according to the Testator’s wishes. Their role is crucial in ensuring that the estate is administered properly.
Guardian: A Guardian is responsible for the care and upbringing of minor children if both parents pass away. While they handle the children’s personal and day-to-day needs, they do not automatically have control over financial assets unless specified in the Will.
EPF: Who Receives the Savings from My EPF?
When a minor is nominated for the EPF, KWSP does not transfer the EPF savings directly to the executor or the guardian. The minor nominee will also not receive the savings directly. Instead, KWSP assumes the role of trustee for the funds.
KWSP will hold the savings securely until the minor nominee turns 18. During this period, the funds are kept safe and are not accessible to anyone unless the guardian applies to KWSP, subject to KWSP’s approval.
Insurance Policies: Who Holds the Payout for a Minor Nominee?
If the minor has a surviving parent, that parent will automatically act as the trustee for the insurance payout, managing it until the minor turns 18.
If there is no surviving parent, Amanah Raya will automatically become the trustee, managing the insurance payout in accordance with legal requirements until the minor reaches 18.
Does This Mean My Children Will Not Receive Anything Before They Turn 18?
Yes, if the Testator did not set up a testamentary trust, then the trustee will hold the assets on trust for the minor beneficiary. This could lead to potential complications in accessing funds for the children’s immediate needs.
To avoid these issues, it’s advisable to establish a testamentary trust. This allows you to have more control over how and when the funds are distributed to the minor children, providing added protection and structure for managing their inheritance.
Why is establishing a Testamentary Trust so Important?
- Immediate Needs: Children have needs that can’t wait until they turn 18, such as school fees, medical expenses, and daily living costs. A testamentary trust can ensure these are taken care of.
- Control Over Spending: Without a trust, there’s a risk that the funds might be mismanaged or spent too quickly. A testamentary trust allows you to specify how the money should be used, ensuring it lasts until the child reaches maturity.
- Avoiding Family Disputes: Money can bring out the worst in people. By setting clear guidelines through a testamentary trust, you can minimize the risk of family conflicts over the management of your child’s inheritance.
Setting up a testamentary trust is a way to protect your children’s future and ensure their financial well-being even if you’re not around.
For more information, you may refer to our previous articles:
Why do you need to set up a Testamentary Trust for your minor children?
How can a Testamentary Trust secure your children’s future better than a simple will – Part 1
How can a Testamentary Trust secure your children’s future better than a simple will – Part 2
You may make an appointment with our legal advisor here: https://calendly.com/finex-and-co-legacy-advisory/tea-talk-with-legal-expert
我的EPF和保险提名人是未成年人——他们能拿到这些钱吗？
“我的孩子还没满18岁，他是我的EPF和保险的提名人 (nominee)，而我把我的姐姐指定为遗嘱执行人，那这些EPF和保险的钱会给我姐姐吗？”
这是很多父母在规划资产时会担心的问题。我们来搞清楚这些角色是什么，以及它们如何影响资金的分配：
重要的角色：
遗嘱执行人 （Executor）：执行人负责根据遗嘱的指示处理事务，确保资产按照立遗嘱人的意愿分配和管理。
监护人 (Guardian)：如果双亲都不在了，监护人就负责照顾未成年子女的生活和教育需求，但不会有自动权力来管理属于这些未成年提名人的资产。
EPF：谁能拿到我的EPF储蓄？
当公积金 (EPF) 的提名人是未成年人时，KWSP（公积金局）不会直接把EPF的储蓄给执行人或监护人。未成年提名人 (nominee) 也不会直接拿到这些钱。KWSP会作为受托人 (Trustee) 来保管这些钱。KWSP将会保管这些钱直到提名人满18岁。在这期间，钱是不能随便动用的，除非监护人向KWSP申请，而且得到批准。
保险：未成年提名人能拿到保险赔偿吗？
如果未成年人的其中一个父母还在的话，那个父母会自动成为保险赔偿的受托人 (Trustee)，直到孩子满18岁。
如果父母都不在了，Amanah Raya会自动成为受托人 (Trustee)，按照法律规定管理保险赔偿，直到孩子满18岁。
那我的孩子在他们18岁之前就不能拿到这些钱了吗？
没错，如果立遗嘱人没有设立遗嘱信托，受托人 (Trustee) 会代为保管这些资产，直到未成年受益人年满18岁。这可能会导致在孩子急需资金时出现问题。
家长可以设立遗嘱信托来避免这些问题。这样可以更好地控制资金的发放方式和时间，为未成年孩子的继承提供额外的保护和管理。
为什么设立遗嘱信托这么重要？
- 立即需求：孩子的生活开销，如学费、医疗费用等，可能等不及他们满18岁。遗嘱信托可以确保这些费用得到及时处理
- 控制支出：如果没有信托，资金可能会被误用或花得太快。遗嘱信托让你能指定资金的使用方式，确保这些钱能够合理支配，直到孩子成年。
- 避免家庭争执：钱常常会引发争端。通过设立遗嘱信托，你可以明确规定孩子继承的管理方式，减少家庭纷争的风险。
设立遗嘱信托就是为了保护你孩子的未来，确保他们的财务安全，即使你不在了也不用担心。
想了解更多，可以参考我们的相关文章：
为什么你需要为未成年子女设立遗嘱信托？
遗嘱信托如何比简单遗嘱更好地保障您的孩子未来 – 第一部分
遗嘱信托如何比简单遗嘱更好地保障您的孩子未来 – 第二部分
