Wealth, is a subject that often concerns especially those who have it, and know they will need one day in the future to release it to others.
EPF's recent "innovation" to allow EPF contributors to transfer some of their EPF savings to close family members is a move that brings to mind the Chinese word for crisis (危機); danger and opportunity.
EPF believes that close family members should theoretically be safe recipients of one's hard-earned life savings. But this is only a presumption on their part, as transferees will have full powers to deal with the funds as if they were their own after the transfer. The pertinent question therefore is whether can EPF do anything to stop the transferee contributor from withdrawing funds under permissible withdrawals before retirement under current regulations. The simple answer is NO. While transferors may make known how the transferred savings are to be utilised, they certainly have no means to ensure the transferee follows that. And certainly, they cannot expect or require EPF to safeguard and enforce anything on their behalf.
Here at Generations-ASIA, we have the tools and products that, when appropriately implemented together with this new 'withdrawal' category of one's EPF savings transfer, will work to provide the necessary legal safeguards to allow only the utilisation of the transferred funds exactly as intended by the transferor party. So email us at enquiry@generations-asia.com for a free 20-minute consultation where we will explain and show you how to effectively protect your life savings from being utilised against your wishes. After all, we truly believe your wishes are something you value highly and will do what it takes to see it carried out.
Source URL: Wealth transfer plan a risky move | The Star
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