Do I have to follow faraid portions for CPF nomination?

No, Proceeds from CPF nominations received by nominees do not have to be distributed through Faraid. The nominations are considered as hibah made by the contributor during their lifetime solely to the nominees and are not subject to Faraid distribution. However, it acts as a good guide for you to estimate how much you would wish to give individual persons from your family. You can also choose to nominate your friends and also charity organizations as well.

The Fatwa Committee decrees that:

Each CPF contributor is responsible to evaluate the option which is most suited and fulfills the needs and protects the welfare of his/her family in the administration of his/her CPF savings. S/he may choose to either utilise the nomination instrument, or distribute according to Faraid, or exercise both options together. This evaluation and assessment must take into consideration the financial condition of his/her beneficiaries and who is in more need of the money.

At the same time, CPF contributors must be aware that a nomination cannot be made with the intention and purpose of unfairly denying the rights of the other beneficiaries.

For the full fatwa text reviewed in 2010, please visit: https://www.muis.gov.sg/officeofthemufti/Fatwa/CPF-Nomination/.