Q MY SISTER, a divorcee with two teenage kids, and I bought a five-room HDB flat in 1998 under a tenancy-in-common arrangement.
The flat was bought with my Central Providend Fund (CPF) money and I spent about $40,000 renovating it.
Initially, my sister paid only the conservancy charges and utility bills.
I am single and have nominated my eldest sister as the beneficiary of all my CPF savings. I do not have a will.
If I die before my divorced sister does, will the CPF nomination override the tenancy in common?
Is she still entitled to any share of the flat since she did not contribute any money to the purchase of the flat?
A A tenancy in common is one of two ways of co-owning a property, the other being joint tenancy.
In a tenancy in common, the owners own the interest in undivided shares in that they own shares in the property that has not yet been divided up between them.
On the other hand, in a joint tenancy, no individual can claim to be an owner of a distinct share in the property.
Also, as opposed to a joint tenancy, there is no right of survivorship in a tenancy in common, which means that when one tenant dies, his share or interest will not pass automatically to the survivor.
Therefore, in a tenancy in common, it does not really matter who dies first and such a tenant can leave his share to anyone in a will.
In both forms of co-ownership, the tenants are said to enjoy unity of possession - that is, even if one tenant in common occupies the whole of the property, he is not required to pay compensation to the other tenant.
In a tenancy in common, it is usual to set out each tenant's share of ownership - for example, equal shares, or one-third and two-thirds.
If no specific share is stated, they are presumed to be holding equal shares.
If you are a tenant in common with equal shares, and this is how the legal title reflects the position to be, it would not be possible for you override the legal title to claim a bigger share than your sister's.
It would also be so even if some other distinct shares have been specifically stated.
Your eldest sister whom you have nominated to receive your CPF money is a beneficiary only in respect of whatever funds are standing to your credit in your various CPF accounts.
Therefore, unless the flat is sold and its proceeds ploughed back into your CPF account, she would not be able to enjoy any benefit of your share in the flat.
A CPF nomination does not affect your divorced sister's share in the flat since she is already a co-owner and is said to have a vested interest in the property.
Also, her half share belongs to her already and you cannot deprive her of that.
If you wish your eldest sister to enjoy your share of the flat, you should make a will and in it, give her your share.
If you do not make a will, your share in the flat will be distributed according to the rules of intestacy - that is, if there are no surviving parents, your surviving siblings will take equal shares.
Amolat Singh Lawyer
Amolat & Partners
