A Comprehensive Guide to the Lasting Power of Attorney (LPA) in Singapore

A Comprehensive Guide to the Lasting Power of Attorney (LPA) in Singapore

Planning for the future isn't just about financial security—it’s also about ensuring that your personal welfare and affairs are managed according to your wishes if you’re unable to make decisions yourself. In Singapore, the Lasting Power of Attorney (LPA) is a critical legal tool that empowers you to appoint trusted individuals to act on your behalf in such scenarios. One of the more common things I hear when I bring this up

In this guide, we’ll explore what an LPA is, how it works, and why setting one up is an essential part of your long-term planning.

What is a Lasting Power of Attorney (LPA)?

A Lasting Power of Attorney (LPA) is a legal document that allows an individual, known as the donor, to appoint one or more donees to make decisions on their behalf if they lose mental capacity. This might happen due to an illness like dementia, a severe accident, or other conditions that impair cognitive function.

The LPA serves two primary functions:

1. Personal Welfare Decisions: These include decisions about your healthcare, daily routines, living arrangements, and overall well-being.

2. Property & Affairs Decisions: These relate to financial matters such as managing bank accounts, paying bills, handling investments, and dealing with real estate.

Without an LPA, your loved ones would have to apply to the court to be appointed as a deputy, a process that can be time-consuming, costly, and emotionally stressful.

I've heard stories where the deputyship application process took up to 6 months. During this waiting period, family members were unable to access their father's bank accounts to cover medical costs. While many of us are fortunate to have supportive families who would stand by us, not all situations are so straightforward. The law is designed to address a variety of scenarios, and having an LPA makes it easier for the authorities to respect your wishes and manage your affairs efficiently.

Types of LPA in Singapore

Singapore offers two types of LPA forms, each catering to different needs:

1. LPA Form 1: This is the standard form that gives broad powers to your donee(s). It allows them to make general decisions regarding both your personal welfare and property/financial affairs. Most people use LPA Form 1 because it covers the essential areas of decision-making.

2. LPA Form 2: This form is for those who want to customize the powers they give to their donee(s). You might use this form if you wish to include specific instructions or limitations. Form 2 requires a lawyer to draft and endorse, as it involves more complex legal considerations.

Who Should You Appoint as Your Donee?

Appointing a donee is a significant decision. The individual (or individuals) you choose should be someone you trust deeply to act in your best interest, as they will be responsible for making crucial decisions on your behalf. You can appoint more than one donee, and they can either act jointly (making decisions together) or severally (making decisions independently).

Key considerations when choosing your donee(s):

• Trustworthiness: Choose someone who will respect your wishes and act in your best interest.

• Capability: Ensure that your donee(s) have the ability and willingness to manage the responsibilities involved, especially when it comes to complex financial decisions.

• Relationship dynamics: Consider the relationships between potential donees, especially if you’re appointing more than one. Joint decision-making can sometimes lead to conflicts, so think about how they’ll work together.

How to Set Up a Lasting Power of Attorney (LPA) in Singapore

The process of setting up an LPA is relatively straightforward, but it involves a few key steps:

1. Select Your Donee(s): Carefully choose one or more trusted individuals to act as your donee(s). Be sure to discuss this responsibility with them so they fully understand what’s involved.

2. Complete the LPA Form: Decide whether you’ll use LPA Form 1 (standard) or Form 2 (customized). Fill out the form with the necessary details, specifying the powers you’re granting to your donee(s).

3. Certification by a Certificate Issuer: The LPA form must be witnessed and certified by an accredited certificate issuer. This person can be a medical practitioner, lawyer, or psychiatrist. Their role is to ensure that you understand what you’re doing, that you’re making the decision voluntarily, and that you aren’t being coerced.

4. Submit the LPA for Registration: After certification, submit the LPA form to the Office of the Public Guardian (OPG). There is a registration fee (typically S$75 for Form 1 and S$200 for Form 2), though fee waivers are sometimes available for LPA Form 1 as part of government initiatives to encourage more people to set up an LPA.

5. Processing and Registration: Once submitted, the LPA will be reviewed by the OPG. If there are no objections during the mandatory six-week waiting period, the LPA will be officially registered. At that point, your donee(s) will have the legal authority to act on your behalf if you lose mental capacity.

Legal Considerations and Donee Responsibilities

When setting up an LPA, it’s essential to understand the legal responsibilities that come with it. Donees are legally obligated to act in the best interests of the donor. This includes:

• Acting honestly and with integrity: Donees must always prioritize the donor’s well-being and wishes.

• Maintaining proper records: Donees should keep accurate records of any financial transactions or decisions they make on the donor’s behalf.

• Avoiding conflicts of interest: Donees must not use their position for personal gain or allow their own interests to influence their decisions.

In cases where a donee breaches their duties, they can be held legally accountable, including being removed from their role by the court.

Reviewing and Updating Your LPA

Life circumstances can change, so it’s important to review your LPA regularly to ensure it still reflects your wishes. Here are some situations where you might want to update your LPA:

• Changes in your donee(s)’ circumstances: If your donee can no longer fulfill their responsibilities due to illness, relocation, or other reasons, you may need to appoint a new one.

• Changes in your personal or financial situation: If your financial situation changes significantly, or if your personal needs evolve (e.g., requiring specialized care), you may want to update the instructions in your LPA.

• New relationships or family dynamics: Family relationships can shift over time, and you may want to reflect these changes in your LPA by appointing new donee(s) or adjusting the powers you’ve granted

The Role of a Will vs. a Lasting Power of Attorney

One common response I hear when discussing the importance of an LPA is, ‘But I’ve already written a will.’ While a will is essential for determining how your assets are distributed after your passing, a Lasting Power of Attorney (LPA) serves a different purpose. An LPA focuses on managing your wellbeing and making decisions on your behalf while you are still alive but unable to manage your own affairs.

Understanding this distinction is crucial. A will addresses what happens after you’re gone, whereas an LPA ensures that your wishes are honored and your affairs are handled properly if you become incapacitated.

Frequently Asked Questions (FAQs) About LPA

1. Can I revoke an LPA once it’s registered? Yes, you can revoke an LPA at any time, as long as you still have mental capacity. To do so, you’ll need to fill out the revocation form and submit it to the Office of the Public Guardian. As of now, it costs S$30 to revoke your LPA.

2. What happens if I don’t have an LPA and lose mental capacity? Without an LPA, your family would need to apply to the court to be appointed as your deputy, which can be a lengthy and expensive process. During this time, important decisions about your welfare and finances might be delayed.

3. Can I have more than one donee? Yes, you can appoint multiple donees in your Lasting Power of Attorney (LPA). You have the option to specify whether the donees should act jointly, meaning they must make decisions together, or severally, allowing them to make decisions independently.

It's important to carefully consider this choice. While appointing donees to act jointly might seem like a safer approach, it could also lead to delays if the donees cannot agree on decisions. On the other hand, allowing donees to act severally can facilitate more efficient decision-making but may lead to conflicting actions if not properly coordinated.

4. What’s the difference between an LPA and a will? A will governs how your assets are distributed after you pass away, whereas an LPA allows someone to make decisions on your behalf while you’re still alive but incapacitated. Both are essential parts of long-term planning, but they serve different purposes.

Final Thoughts

Setting up a Lasting Power of Attorney in Singapore is a responsible and proactive step to ensure that your personal welfare and financial affairs are managed according to your wishes if you lose the capacity to make decisions. It provides peace of mind to both you and your loved ones, knowing that someone you trust will be there to safeguard your interests.

While thinking about such scenarios can be challenging, having these conversations and putting the proper legal structures in place will alleviate stress in the long run. Take the time to carefully consider your options, and consult with a professional if you need guidance on customizing your LPA to suit your unique circumstances.

Should This Be Relevant to You

If planning for the future is something you’re considering and you’re comfortable with my support, I’m here to assist you. Setting up a Lasting Power of Attorney (LPA) is an important step to ensure your affairs are managed according to your wishes.

I offer personalized help to guide you through completing, certifying, and registering your LPA at no cost. My goal is to make this process as seamless and stress-free as possible for you.

If you have any questions or concerns about how to proceed, or if you simply want to explore your options, please feel free to reach out. Let’s discuss how I can support you in securing your future with confidence.

Best regards,

Roy & Kok Wee

roychuacb@propelpals.com
tankokwee@propelpals.com

Disclaimer:
The content provided on this blog is intended to be as factual as possible. However, should any portion appear to express an opinion, please understand that it is not financial advice. The information shared here reflects our personal views and does not represent the opinions of any specific company or organization. We strongly encourage you to consult with a qualified and trusted financial advisor before making any financial decisions, as the content may not be suitable for your individual circumstances, and we do not guarantee its accuracy or completeness.