Assets (e.g. bank accounts) in Joint Names
The value of the asset subject to estate duty would generally depend on the contribution made by the deceased to acquire the asset.
If the deceased solely provided the funds, the full share will be assessed. If the other joint owner can show evidence that he or she also contributes equally towards the asset, then only half share of the value of the assets will be assessed.
Central Provident Fund (CPF)
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 |
The CPF monies are subject to Estate Duty regardless of whether the monies have been distributed. Therefore, it is necessary to declare the CPF monies when filing Estate Duty.
Immovable Property Owned by the Deceased
The market value of the property at the time of death should be declared.
There is a $9 million exemption for residential properties, regardless of whether the properties are let out or owner occupied.
The value of non-residential properties will be aggregated with the value of the other assets up to an exemption of $600,000.
Please refer to Exemptions for more details.
Insurance
- If the policies were effected by the deceased on his own life, the insurance proceeds payable on his death is subject to estate duty.
- If policies were effected by the deceased on the life of another person (e.g. where the children are the life assured), the cash/surrender value of the policy as at the date of death is subject to estate duty.
Such policies are subject to estate duty. However, if the deceased never had any interest in the policy, it will be assessed as a separate estate where an exemption of $600,000 will be given.
In the case of the HPS, the policy is assigned automatically to HDB, which means any insurance payout goes to the board directly to pay off the outstanding part of the loan. Hence, it would not attract estate duty.
If the policy has been assigned to the bank, i.e. the mortgagee that extends the loan, the insurer will liaise directly with the mortgagee to pay off the loan upon death.
Any balance of the insurance money, after offsetting the mortgage loan is subject to estate duty. If the policy has not been assigned, the insurance proceeds are subject to estate duty.
Shares
Supplementary Retirement Scheme (SRS)
Yes, regardless of whether the SRS account comprises cash or other investments.