EPF & Will

The Will cannot overwrite the EPF beneficiaries’ policy. Therefore whatever you write on the Will has no power to overrule what you have assigned at the EPF (KWSP) office.

I also found out that there is no substitute beneficiary with EPF which post some problems. Here are the cases:

1. Let’s say I nominate my spouse to take 100% of my EPF fund. If my partner and I passed away, the fund will be distributed according to the law. That is

• Surviving Spouse only – 100% to spouse
• Surviving Parents only – 100% to parents
• Surviving Issues only – 100% to Issues. Issues refer to children & grandchildren
• Surviving Spouse and Parents only – 50% spouse and 50% parents
• Surviving Spouse and Issues only – 1/3 spouse and 2/3 Issues
• Surviving Parents and Issues only – 1/3 parents and 2/3 Issues
• All Spouse, Parents & Issues – 25% spouse, 25% parents and 50% Issues

2. Let’s say I nominate my spouse to take 50% and my children to take 50%.

a. If I and my partner passed away, children will only have 50%++ and the other 50% will be distributed according to the law. If the children are below 18, they will not get anything until they reach 18. The guardian may apply a portion for the children expenses but it has to go through the red tapes.

b. If spouse survive then he can withdraw 50%. The rest will have to wait for the children to reach 18.

In above both cases with children below 18, it will be difficult for us to use the money for them. We need a court order and apply for a withdrawal for them with all the relevant documents. I am not sure how long it will take but a court order will take some time.