Singapore Exchange (SGX Group) has worked with the Monetary Authority of Singapore (MAS) and the Public Trustee’s Office (PTO) to simplify the process for intestate claims for assets held with The Central Depository (CDP) valued at $5,000 or below. The simplified process will come into effect today.
The simplified process removes the need for a next-of-kin to obtain legal documentation to claim the assets of a deceased person who did not make a will. Prior to the change, the cost of obtaining such legal documentation could exceed the value of assets held with CDP.
SGX Group, MAS and PTO worked together to establish the necessary safeguards to allow small value claims to proceed, while minimising the risks of abuse or disputes. One such safeguard is that applicants must obtain signed letters of consent from all other beneficiaries to ensure there are no competing claims on the assets under intestate succession rules. Applicants who wish to utilise the simplified process must fulfil the conditions set out in the Appendix, before submitting an application to CDP.
“This effort aims to support family members as they try to settle the affairs of their loved ones. Through this new process, relatives of those with assets of $5,000 and below need not incur costs that outweigh the value of the claim,” said Loh Boon Chye, Chief Executive Officer, SGX Group.
“With this new procedure, we hope to relieve the administrative burden on family members of deceased persons, which will particularly benefit those facing difficult financial circumstances,” said Francis Ng, Public Trustee, Ministry of Law. “The simplified procedure is expected to reduce the time needed to process such claims and remove the need for legal documentation.”
Appendix
The procedure will only apply to accounts containing assets valued at $5,000 or less. All of the following conditions must also be fulfilled:
1.The deceased person passed on without making a will.
2. The Applicant must obtain signed letters of consent in the form prescribed by CDP from all other next-of-kin who are entitled to the estate under the Intestate Succession Act or the Administration of Muslim Law Act (as shown in an Inheritance Certificate issued by Syariah Court Singapore).
3. If the Applicant is not the deceased person’s nearest living relative, the Applicant must obtain consent from the deceased person’s nearest living relative for CDP’s disclosure of the deceased person’s personal data to the Applicant. The nearest living relative is the eldest individual in the first of the following sub-paragraphs (i) to (v), whichever is applicable:
(i) the deceased person’s spouse at the time of death;
(ii) the deceased person’s child;
(iii) the deceased person’s parent;
(iv) the deceased person’s brother or sister; and
(v) any other relation of the deceased person.
For example, if the deceased person was never married and had no children but has surviving parents and siblings, the deceased person’s nearest living relative is the older parent.
4. There are no conflicting claims to the estate or disputes among beneficiaries.
5. The Applicant has a securities account with CDP.
6. The Applicant must verify the supporting documents in such manner as required by CDP. Applicants may request a video call appointment to verify original supporting documents. The documents include the deceased person’s death certificate and evidence of the Applicant’s relationship with the deceased person. The Applicant must be personally present during the video call appointment for verification. For in-person meetings, the Applicant may contact CDP at +65 6535 7511 to arrange an appointment.
