Legal Tips

Disabled Dependent Insurance Scheme (DDIS) and the Public Trustee

Document Date: 29-Jun-1998

Here are some Frequently Asked Questions on the topic "Disabled Dependant Insurance Scheme (DDIS) and the Public Trustee" :

1. Can you let me know something about how the Public Trustee works?
2. If the Public Trustee is appointed to receive the DDIS proceeds, how would the Public Trustee normally distribute the proceeds?
3. Are there any charges payable to the Public Trustee for the administration of the estate?
4. Is the Public Trustee empowered to invest the proceeds?

1. Can you let me know something about how the Public Trustee works?

   The office of the Public Trustee is created under the Public Trustee Act. The Public Trustee is appointed by the Minister of Law with the powers to act and assist in the administration of small estates (ie below $ 50,000) and act as a trustee. The Public Trustee does not administer estates which includes on-going business.

2. If the Public Trustee is appointed to receive the DDIS proceeds, how would the Public Trustee normally distribute the proceeds?

   The proceeds would usually be distributed to the person who is the guardian of the disabled child. Where there is no guardian, the Public Trustee will disburse the funds accordingly towards the child's maintenance.

3. Are there any charges payable to the Public Trustee for the administration of the estate?

   Yes. For the administration of the estate, the fees are charged according to the following rates:
   

   6 % - for the first $5000 in the estate 4.75% for the next $2000 3.75% for the next $3000 2.5% for the next $10000 2% for subsequent amounts

4. Is the Public Trustee empowered to invest the proceeds?

   Yes, the Public Trustee is empowered to either invest the proceeds or put it in a bank account. Where the funds are invested, interest will be paid on the proceeds invested. The rate of interest payable for funds invested in 1998 is 4.75% p.a. Where the funds are kept in a bank (currently POSB), such monies earn interest at 3.75% p.a for 1998.

   The interest rates are reviewed every year.
   

Footnotes: The Disabled Dependents Insurance Scheme is a NTUC insurance scheme open to all parents/guardians who are presently caring for a disabled person registered with various Voluntary Welfare Organisations. This scheme enables policies to be issued on the life of the parent/guardian, with the disabled dependent as the sole beneficiary. The insurance proceeds will be distributed to the correct person(s)/establishment taking care of the disabled person.