Distribution of Balance in Special Needs Savings Scheme on Demise of Child

25 Mr Christopher de Souza asked the Minister for Social and Family Development whether, under the Special Needs Savings Scheme, the Ministry will consider allowing parents of children with special needs to specify to whom the remaining money will be distributed in the unfortunate event of the passing on of the child.

Mr Masagos Zulkifli B M M: The Special Needs Savings Scheme (SNSS) enables parents to set aside their CPF savings for the long-term care of their children with special needs. Parents can nominate their children with special needs to receive a regular stream of fixed payouts upon the parents' demise.

If the SNSS nominee passes on before the parents, the CPF savings originally bequeathed to the SNSS nominee remain in the parents' CPF accounts. If the parents wish to, they can update their CPF nomination to specify how their CPF savings will be distributed upon their demise.

However, if the SNSS nominee passes on after the parents, any unused SNSS monies upon the demise of the nominee, will form part of the nominee’s estate, and be distributed either via a will or intestacy laws.

Parents who would like to decide how their bequeathed CPF savings will be distributed in the event that their SNSS nominees pass on after them can consider setting up a trust to specify how their bequeathed monies will be used. Parents of SNSS nominees who are assessed to lack mental capacity can also apply to the Court to make a will on their nominees' behalf.