Isaac Fang, CFA Speak to Isaac

Will, trust, CPF nomination and LPA: what each one does

Four documents that people often lump together under "estate planning". Each does a different job, and none of them covers for the others.

By Isaac Fang, CFA First published 28 October 2026

Illustration of four old keys of different shapes laid in a row on a table beside a closed folder, one hand reaching for a key

When people say they have "done their estate planning", they usually mean one thing: a will, or a CPF nomination made years ago.

The trouble is that a will, a CPF nomination, a Lasting Power of Attorney and a trust each cover different ground. Having one does not fill the gaps left by the others. Here is what each does, in plain terms. This is general information rather than legal guidance, and your lawyer can confirm how any of it applies to you.

What does a will cover, and what does it not?

A will sets out how your estate is to be distributed after you die, and who carries out those instructions (your executor). While you are alive, it does nothing.

Under the Wills Act 1838, a will made by someone under 21 years of age is not valid. The will must be in writing, signed at the foot or end by the person making it, in the presence of two or more witnesses present at the same time, who then sign it too.

Two details catch people out. Marriage generally revokes an existing will, with some exceptions set out in section 13 of the Act, such as a will expressed to be made in contemplation of that marriage. And a will does not reach everything you might think of as yours. CPF money is the main example, which is the next section.

Why CPF money needs a separate nomination

The CPF Board states that CPF monies do not form part of your estate and cannot be controlled by your will. Whatever your will says, it does not decide who receives your CPF money. A CPF nomination does.

Without a nomination, the CPF Board says your CPF money is distributed by the Public Trustee's Office to family members under the intestacy laws or a Muslim Inheritance Certificate. You do not get to decide who receives it or in what shares. The CPF Board also notes that identifying the eligible family members can take up to six months, and that the Public Trustee's Office deducts an administrative fee before distributing.

According to the CPF Board, you can make a nomination once you turn 16, and you need two witnesses, who cannot be your nominees. Like a will, an existing CPF nomination is revoked by marriage, so it needs redoing after the wedding.

The CPF Board also lists what a CPF nomination does not cover: property bought with CPF money, payouts under the Dependants' Protection Scheme, and investments made under the CPF Investment Scheme. Those follow their own rules, so check them separately.

What a Lasting Power of Attorney is for

A will and a CPF nomination both deal with death. A Lasting Power of Attorney (LPA) deals with a different risk: being alive but no longer able to make decisions.

The Office of the Public Guardian describes the LPA as a legal document that lets a person aged at least 21 (the donor) appoint one or more people (donees) to make decisions and act on their behalf if they lose mental capacity one day. Donees can be given powers over personal welfare, property and affairs, or both.

An LPA has to be witnessed and signed off by an LPA Certificate Issuer, who charges a professional fee. There are two forms. Form 1 grants general powers with basic restrictions. Form 2 grants customised powers, and its clauses have to be drafted by a lawyer.

Without an LPA, the Office of the Public Guardian notes that loved ones may need to apply for a deputyship order if a person loses mental capacity. That is a court process, at the point when the family is least able to face one.

When a trust makes sense

A will, a CPF nomination and an LPA are the essentials. A trust is a further layer, for people who want more control over how and when assets reach their family.

The idea is simple. You (the settlor) move assets to a trustee, who holds them for the people you name (the beneficiaries), under terms you set in the trust deed. Ownership and benefit are separated. I explain it with a mango tree on the legacy planning page.

Trusts come in a few broad shapes:

  • Living trust. Set up and funded during your lifetime. The trustee holds the assets from the start, and distributions follow the terms you set.
  • Standby trust. Set up during your lifetime with little or nothing in it, ready to receive assets such as insurance proceeds later, so the money is then managed under the trust's terms rather than paid out in one sum.
  • Testamentary trust. Created by your will, so it comes into being after death and the assets pass through your estate first.

A trust can run for a long time. Under section 32 of the Civil Law Act 1909, the perpetuity period for a trust taking effect on or after 15 December 2004 is 100 years, or a shorter period set in the trust deed. Your lawyer can confirm how this applies to you.

A trust makes most sense when a lump sum would not suit the people receiving it: young children, a family member who needs support for life, or a family that wants assets released in stages. I work with Phillip Trustee Pte Ltd on investment trusts, where I can be appointed investment manager of the trust assets. The details are on the legacy and trusts page.

Insurance nominations

Insurance has its own nomination rules, separate from CPF. They sit in Part 3C of the Insurance Act 1966 (sections 132 and 133 in the current edition, formerly sections 49L and 49M), and apply to a life or accident and health policy that provides death benefits and insures the life of the policy owner, among other conditions. The policy owner must be at least 18.

A trust nomination (section 132) can name your spouse, your children, or both. It creates a trust of the policy moneys in their favour. Subject to an exception where premiums were paid to defraud creditors, those moneys do not form part of your estate and are not subject to your debts. The trade-off is that you cannot later revoke the nomination, or change the policy in ways that affect the benefits, without the written consent the Act sets out, generally from the trustee or the adult nominees.

A revocable nomination (section 133) can name any person, and you can revoke it at any time. It is also treated as revoked if you later make a will that deals with all the death benefits under that policy and gives the prescribed policy details. So a new will can override an old revocable nomination, which is worth knowing before you sign one. Your lawyer can confirm how this applies to you.

A simple order to set them up

There is no single right sequence, but this is the order I tend to walk through, from the broadest gap to the most tailored.

  1. CPF nomination. Quick to do, and it settles where your CPF money goes. Redo it after marriage.
  2. Will. Covers the rest of your estate, names an executor, and can name guardians for young children. Redo it after marriage too.
  3. Lasting Power of Attorney. Covers the years when you may be alive but unable to decide for yourself.
  4. Insurance nominations. Check each policy. Decide between trust and revocable nominations knowingly, and make sure they sit comfortably with your will.
  5. A trust, if it fits. Once the essentials are in place, consider whether some assets should be held on terms and released over time.

Review them all at the milestones: marriage, children, divorce, a death in the family. If you would like to talk through how a trust could sit on top of the rest, send me a message.

Questions

Do I need a lawyer for a will?

The Wills Act 1838 does not require a will to be drafted by a lawyer, but it does set strict formalities: it must be in writing, signed, and witnessed by two people present at the same time. A gift to a witness, or to a witness's spouse, is void, so beneficiaries should not act as witnesses. Your lawyer can confirm how this applies to you, and a lawyer is worth having where assets, family or overseas property make things less than simple.

Can a trust hold insurance proceeds?

Yes, in more than one way. A trust nomination under section 132 of the Insurance Act 1966 itself creates a trust of the policy moneys for your spouse and children, with trustees you appoint; separately, a standby trust can be set up to receive policy proceeds and manage them under its own terms. Your lawyer and the insurer can confirm what each policy allows.

What happens if I die without a will?

Your estate is distributed under the rules in section 7 of the Intestate Succession Act 1967, not according to your wishes. For example, a surviving spouse with children receives one-half of the estate and the children share the rest; a spouse with no children and no parents receives the whole estate. The Act does not apply to the estate of a Muslim, and your CPF money follows the separate CPF rules described above. Your lawyer can confirm how this applies to you.

Sources

New article drafted October 2026. Approved for publication by PhillipCapital PD, reported by JY 28 Oct 2026. Lightly edited for this site.

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