CPF balances, regardless of the amount, are exempt from estate duty as follows:
1. Where CPF balance is more than S$600,000, estate duty is imposed on the value of the other assets excluding CPF balance
| | a. Deceased leaves $1.5 million in CPF balance and nothing else | b. Deceased leaves $1.5 million in CPF balance and S$500,000 in cash, stocks, and other non-residential property assets |
|---|
| CPF Balance | $1.5 million | $1.5 million |
| Other assets | NIL | $500,000 |
| Total assets | $1.5 million | $2 million |
| Less exemption of $600,000 | $600,000 | $600,000 |
| Balance | $900,000 | $1.4 million |
Less exemption
(CPF balance in excess of $600,000) | $900,000
(1.5 million - 600,000) | $900,000 |
| Net value | NIL | $500,000 |
| Estate duty payable @ 5% | NIL | $25,000 |
2. Where the CPF balance is equal to or less than $600,000, duty is imposed on the excess value of other assets that exceeds the S$600,000 threshold when aggregated with the CPF balance.
| | c. Deceased leaves $300,000 in CPF balance and $500,000 in cash, stocks, and other non-residential property assets | d. Deceased leaves $600,000 in CPF balance and $600,000 in cash, stocks, and other non-residential property assets |
|---|
| CPF balance | $300,000 | $600,000 |
| Other assets | $500,000 | $600,000 |
| Total assets | $800,000 | $1.2 million |
| Less exemption of $600,000 | $600,000 | $600,000 |
| Balance | $200,000 | $600,000 |
Less exemption
(CPF balance in excess of $600,000) | NIL | NIL |
| Net value | $200,000 | $600,000 |
| Estate Duty Payable @ 5% | $10,000 | $30,000 |