Why It Is Important to Nominate a Beneficiary for Your EPF Account
•By Mahersaham Team
Artikel ini juga tersedia dalam Bahasa Melayu
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Many people today have an EPF account but forget to nominate a beneficiary or make a nomination.
Some do not even realise how important it is to nominate a beneficiary. Yes, it is important!
If your EPF account has no nominee, it will cause difficulties in the future. This article explains why it is important to nominate a beneficiary for your EPF account and how to make a nomination.
Nomination is the process of choosing an individual or institution to receive and administer our EPF savings in the event of our death.
We must plan ahead by making a nomination to reduce hardship and to ensure our heirs receive financial security after we pass away.
For the beneficiary nomination process, you may choose an individual or an institution such as Amanah Raya Berhad (ARB) to manage your EPF account after death. The individual must be:
1. Aged 18 years and above
2. A Malaysian citizen OR Permanent Resident. If not a citizen, they must have been an EPF member before 1 August 1998
The individual or institution involved acts as an executor or administrator responsible for distributing our savings to the rightful heirs in accordance with Islamic Law upon our death.
If we choose ARB as the nominee, ARB will become the administrator of 100% of our savings and manage our estate after our death.
By nominating a beneficiary for your EPF account, it will make it easier for the nominee to withdraw the funds and distribute the estate to the rightful heirs according to their needs and circumstances.
However, if there is no nominee, the claims process becomes more complicated as it will take a long time before your heirs can claim the funds.
Without a nominee, it will cause complications for our family members in the future.
When our family members come to claim the estate, the process will take a long time as it requires verification and lengthy procedures.
This process could take up to a year before the heirs can finally claim the estate.
By making a nomination, we have essentially prepared an inheritance for our heirs.
At the very least, this inheritance can help our heirs or family continue their lives with the financial provisions left behind.
You should also know that many people pass away today without having managed their estate, causing numerous issues such as unclaimed money and other problems.
To avoid difficulties in the future, you must nominate a beneficiary for your EPF account.
Not sure how to nominate a beneficiary for your EPF savings?
Do not worry, simply fill in the Online Nomination Form on the EPF Portal. Then submit it at any nearby EPF branch. Done!
Make sure the nominee you appoint is a responsible and trustworthy person.
We hope this was helpful!
If there is no nominee, your heirs will face a lengthy and complicated claims process that could take up to a year, involving additional verification and legal procedures.
Yes, you can update or change your EPF nomination at any time by submitting a new nomination form at any EPF branch or through the EPF online portal.
No, making a nomination for your EPF account is completely free. You only need to fill in the nomination form and submit it.
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