What happens to the investments held in an investment account (e.g., CDP) when a person passes away?
If the deceased has left a Will, the investments will be distributed according to the instructions in the Will.
Check out this article on “How do I list/allocate myinvestments (e.g. shares of publicly listed companies, funds) in the platform?”
If there is no Will, the distribution will follow the applicable intestacy laws (e.g., Singapore’s Intestate Succession Act).
For investment accounts, brokerages typically transfer the securities to an estate account. These securities will then be transferred based on the instructions of the executor or administrator of the estate. Generally, executors/administrators transfer the securities as they are (in lieu of liquidating them first) to the beneficiaries unless otherwise specified in the Will.
This approach is often taken for practical reasons, as the timing and price of selling investments can be subjective. You will need to check with the respective institutions for their exact procedures.
Unfortunately, not all brokerages have publicly available information about this process on their websites, but you can refer to CDP as an example.
