MCA Quiz

Can a NOK appointed as representative of P under foreign law rely on that foreign LPA/foreign court order to withdraw P’s CPF assets?

• Depends. Can recognise if the foreign LPA/court order has been registered in Singapore

• No, NOK needs to be appointed as P's deputy under the MCA

• Yes, foreign LPA/court order recognised the authority of the NOK over P's assets

Answer explanation

The foreign LPA/foreign court order cannot be relied on solely for NOK to withdraw P’s CPF assets.

Our position is that the NOK  needs to get appointed as deputy of P under the MCA. He will need to seek his own legal advice from Singapore lawyers on what to do next. The Singapore lawyers can advise the NOK on how to get himself appointed as deputy under MCA.

P and his family are based overseas. Does the NOK (and P?) need to travel to Singapore to get appointed as Deputy under MCA? 

• Yes, since you are making the application to Singapore Court

• No, applications can be made electronically

• Maybe, it is advisable for NOK to appoint Singapore lawyers to act and advise him/her of the process

Answer explanation

It may not be necessary for them to travel to Singapore to get appointed.

However, NOK would need to appoint Singapore lawyers to act for and advise him/her on the process.

Can the CPF nomination of P be revoked by the Deputy/Donee?

• Yes, the deputy/donee can be empowered to do so

• No, revocation can only be done by the court.

Answer explanation

Revocation can only be done by the court. The donor/donee cannot revoke the CPF Nomination on behalf of P. Note that the wording of the court order must specifically state that the court has ordered the revocation of P’s CPF nomination.

Sample of a "correctly worded" revocation order

"The nomination of the Defendant as P’s nominee for his Central Provident Fund moneys and/or any shares in an approved corporation designated under section 26 of the Central Provident Fund Act (the “Act”) is revoked."

Sample of an "incorrectly worded" revocation order

“The Deputies shall have authority to revoke the existing nomination of beneficiaries/ recipients of P’s money in his CPF account (if any).”

Who should execute a court-ordered CPF nomination?

• The Deputy/Donee

• The Court

• Whoever is authorised by the court

Answer explanation

We need to look at the wording of the court order. The order should state who has been authorized to execute the CPF nomination.  If the order provides for the court to execute the nomination, please send to LEGAL for advice.

Does the court-ordered CPF nomination need to bear the court seal?

• Yes

• No

Answer explanation

No, this is not necesary

Where more than one deputy/donee has been appointed, must the deputies / donees act jointly?

• Yes, that is the whole point of appointing more than one person.

• No, the additional donee/deputy is a "spare"

• Depends on the wording of LPA/court order

Answer explanation

It depends. Need to see what the court order (for deputies) or LPA (for donees) says.

• If it says they are to act jointly, then they must act together.

• If it says they are to act jointly and severally, then they can take decisions together or separately.

• If it is silent, assume that they are to act jointly

Must the Board pay P’s CPF withdrawals to a trust bank account?

• Yes

• No

Answer explanation

No. It is not a legal requirement for the Board to make payment to a trust bank account where a deputy/donee has been appointed.

However, there is a need to consider the wording of the deputy court order. Does it direct the deputy to open a certain bank account for receiving payments for P? If yes, the Board should only make payment to that account. 

Can the Board pay to SNTC Account?

• Yes

• No

• Depends

Answer explanation

Depends on:

- whether a SNTC trust account has been set up for the benefit of P;

- whether the deputy/donee requests the Board to do make payment to the SNTC trust account; and

- the wording of the deputy court order.

Can the Board pay to a joint bank account held by P and another person?

• Yes

• No

• Depends

Answer explanation

The Code of Practice for Deputies states that P’s money must be kept separate. Hence, generally, we should not pay to a joint bank account.

However, if the court order specifies that P’s money is to be paid to a joint account, then we will follow the court order.