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Question on Child Development Account (CDA) – Willing it away PDF Print E-mail
Written by Wilfred Ling   
Thursday, 15 November 2012

Question: Wilfred, I’ve maximize the CDA account by giving birth to six children. With the government 1-1 matching, the CDA accounts are worth $144,000. To ensure that this CDA is taken care off upon my demise, I wish to will my CDA to my wife.

Answer: As a parent of your child’s CDA, you cannot will it away. The CDA account belongs to your children. It does not form part of your estate. In fact, the CDA account is a trust account. The trustee is the parent. If divorced, the trustee is the parent who has the the custody, care and control of the child. Note that ‘parent’ also refers to legal guardian. If the child is legally adopted, the trustee is the adopter of the child. If the trustee is dead and there is no other legal guardian, the personal representative of the deceased trustee becomes the trustee. Personal representative means the executor or administrator for the time being of the deceased trustee. If the trustee lacks mental capacity and there is no other legal guardian, the deputy of the trustee becomes the trustee of the CDA. If there is no deputy, the government (the Minister - not sure who) can appoint a trustee.

If there is fear that the CDA account will be mismanaged by unknown trustee, you should write a Will. The Executor/Trustee is the Trustee of the CDA.

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