5 Reasons Why You Need a Lasting Power of Attorney in Singapore

A Lasting Power of Attorney (LPA) isn’t just a morbid forethought, reserved only for the elderly or the terminally ill. It’s a powerful legal instrument that anyone can, and should, consider. Embark on a journey with us as we uncover the pivotal reasons behind the necessity of securing an LPA in Singapore. In this insightful exploration, we’ll unravel the five key reasons why having an LPA isn’t just a legal formality - it’s an essential step towards safeguarding your future. Prepare to gain a deeper understanding of how an LPA can protect your interests, uphold your wishes, and provide invaluable peace of mind for you and your loved ones.

”Certainty in uncertainty - that’s the motto to remember.”

• WillCraft

Here Are 5 Reasons Why You Should Make an LPA Now!

Reason 1: Decision Making Authority

Creating a Lasting Power of Attorney (LPA) provides the remarkable capability to select your own decision-maker in advance should you become unable to make decisions for yourself.

If you have an LPA in place

Should you, unfortunately, suffer a loss of mental capacity, your chosen ‘Donee’ steps in. This trusted individual then handles your financial matters and personal welfare aligned with your preference and best interests, easing a significant burden off your shoulders.

Let’s examine the roles of the ‘Donor’ and the ‘Donee’ in an LPA.

What is a ‘Donor’ or ‘Donee’?

Donor:

• The individual who creates and grants authority through an LPA.
• The Donor may appoint a trusted person known as the “donee” to make decisions on his/her behalf if he/she becomes mentally incapacitated.
• The Donor retains the ability to specify the scope and limitations of the authority granted to the donee.

Donee:

• The person appointed by the Donor to act on their behalf on matters outlined in the LPA.
• The Donee is entrusted with decision-making authority regarding the Donor’s personal welfare, including medical treatment and personal property and affairs, including their financials.
• The Donee is obligated to act in the best interests of the Donor and follow any instructions or preferences outlined in the LPA.

If you don’t have an LPA in place

Should you lose mental capacity, the Court might appoint someone to make decisions for you. This situation, known as an application for Deputyship, can lead to substantial legal fees and potential stress as the court-appointed decision-maker may not have been your choice. Such a situation can add unnecessary hardship to your loved ones during an already strenuous period, especially when family members aren’t able to get along.

A Lasting Power of Attorney allows you to dictate the degree of power your Donee can exercise, offering flexibility. For instance, a Form 1 LPA provides your Donee with general powers whilst maintaining basic safeguards, striking a balance between your protection and your Donee’s autonomy.

For more information on the different forms (Form 1 and Form 2), you can visit the MSF website here.

To sum up, an LPA is your ticket to planning for the future, proactively taking charge by appointing an authority to make decisions on your behalf should you lose mental capacity. This will safeguard both your interests and those of your loved ones in unexpected circumstances. It offers peace of mind to you and those who cherish you by lowering the likelihood of family disputes and anxieties that might arise during such trying times.

Reason 2: Asset Management and Estate Planning

When we discuss the importance of a Lasting Power of Attorney (LPA) in Singapore, asset management comes to the forefront as a key element. An LPA is not just a legal safety net for the elderly or terminally ill but also a practical tool capable of safeguarding the financial future of any individual throughout different stages of life.

By designating a ‘Donee’ to manage your estate in the event of mental incapacitation. This delegation of authority empowers the Donor to ensure that your financial and personal matters are handled competently and in alignment with your preferences, especially when you are unable to do so yourself.

The scope of management entrusted to the Donee under an LPA is comprehensive and multifaceted, encompassing a broad range of activities. From overseeing investments and financial transactions to managing day-to-day expenses and paying bills, the Donee assumes responsibility for the efficient and prudent management of your (the Donor’s) estate. Additionally, the Donee may be entrusted with making critical decisions regarding property ownership, such as buying, selling, or renting out property, ensuring that your interests are protected and that your affairs are managed in your best interest.

Overall, the LPA serves as a powerful tool for you to proactively plan for potential incapacity and ensure the seamless management of your affairs by a trusted individual (the Donee) of your choosing.

Additionally, it might be worth noting that LPAs, particularly Form 2 LPAs, permit a significant level of customisation in specifying the powers conferred to the Donee, ensuring your assets are managed in accordance with your wishes. Moreover, it is imperative to note that if expert assistance is required for drafting an LPA, professional services like WillCraft are readily available to guide you through the process.

So, we’ve mentioned a little on Form 1 and Form 2. But what exactly are they? Let’s take a second here to differentiate them.

What is the difference between Form 1 and Form 2 in an LPA?

1. LPA Form 1

• Designed for Donors who prefer granting basic powers with standard restrictions to their Donee(s).

• Provides simplicity and ease of use for straightforward LPA creation.

  For instance,

  Standard restrictions typically include limitations such as prohibiting the Donee(s) from making gifts or donations on behalf of the Donor, mandating acting in the Donor’s best interests, and requiring accurate record-keeping of financial transactions.

  These restrictions aim to balance the empowerment of the Donee(s) with safeguarding the Donor’s assets and interests.

  [Fun fact: 98% of Singapore Citizens who have made an LPA used the LPA Form 1.]

2. LPA Form 2

• Tailored for Donors seeking customised powers for their Donee(s).

• Requires legal drafting assistance from a qualified lawyer.

• Allows for tailored provisions to meet specific preferences and needs.

  For instance,

  This may include specifying which financial assets the Donee(s) can manage, outlining preferences for medical decisions, and authorising property transactions or legal representation.

  Overall, LPA Form 2 offers flexibility for Donors to customise powers beyond the standard provisions in LPA Form 1. It may include addressing unique situations not covered by the standard template.

  [It’s important to note that only a Singapore solicitor qualified to practise Singapore law in a Singapore law practice can draft the LPA Form 2.]

Without an LPA in place, your family may face strenuous court processes to obtain the legal authority to manage your assets. This additional stress and potential financial burden during an already challenging time can easily be avoided through the proactive step of creating an LPA.

Reason 3: Healthcare Decisions

An LPA for your personal welfare is a legal document that grants authority to a designated individual, the Donee, to make crucial medical decisions on behalf of you (the donor), particularly in instances where the Donor is incapacitated or unable to communicate your preferences. This document ensures that your healthcare wishes are respected and followed, providing peace of mind for both your and your loved ones.

Imagine this scenario.

John, a Singaporean citizen, suffers a severe stroke that leaves him unable to communicate or make decisions regarding his medical care. Before his illness, John had executed an LPA for his personal welfare, appointing his daughter, Emily, as his donee. With the authority granted by the LPA, Emily steps in to make important healthcare decisions on John’s behalf, such as consenting to necessary medical treatments, surgeries, or end-of-life care options. By adhering to John’s previously expressed wishes outlined in the LPA, Emily ensures that her father’s healthcare preferences are respected and followed during his time of incapacity.

In summary, an LPA for Healthcare is crucial as it empowers a designated individual to make vital medical decisions on behalf of the Donor in situations where the Donor is incapacitated. This ensures that the Donor’s healthcare preferences are honoured and followed, offering peace of mind for both the Donor and their loved ones during challenging times of incapacity.

Reason 4: Avoiding Court Intervention

If you become mentally incapacitated without an LPA,, your loved ones would need to apply to the court for deputyship to make decisions on your behalf. This process can be time-consuming, costly, and may not result in decisions aligned with your preferences. It may also be contentious when your loved ones are unable to agree on what the best course of action would be for you.

Imagine this scenario.

David, a Singaporean citizen, suffers a sudden stroke that leaves him incapacitated and unable to make decisions about his medical treatment or financial affairs. Since David did not have an LPA in place, his family was compelled to initiate court proceedings to appoint a deputy to manage his affairs.

So, why is it disadvantageous for relying on a court’s decision without an LPA?

1. Time-consuming Process

   The court process for appointing a deputy can be lengthy and bureaucratic. It involves gathering evidence, filing applications, attending hearings, and waiting for court decisions. In John’s case, crucial decisions about his medical care and finances cannot wait for the slow pace of court proceedings.

2. Costly Legal Fees

   Court proceedings entail significant legal fees, including application fees, lawyer’s fees, and court fees. These expenses can quickly accumulate, putting additional financial strain on your family during an already challenging time. Your family may find themselves burdened with unexpected expenses that could have been avoided with an LPA in place.

3. Lack of Personalisation

   Court decisions are based on legal standards and may not always take into account your personal preferences, values, or unique circumstances. The court-appointed deputy may make decisions that do not fully align with your wishes or best interests, leading to outcomes that are not tailored to your specific needs or desires.

4. Potential for Disputes

   Court proceedings can sometimes result in disputes among family members or other interested parties regarding decision-making authority. Conflicts may arise over who should be appointed as the deputy or how decisions should be made. These disputes can prolong the process, exacerbate tensions within your family, and ultimately delay vital decisions affecting the incapacitated individual.

Relying on court decisions without an LPA can cause delays, high costs, impersonal decisions, and potential disputes, negatively affecting you and your family. With an LPA, individuals designate trusted representatives, ensuring efficient management of affairs and respect for their wishes during incapacity.

Reason 5: Peace of Mind

Creating an LPA (Lasting Power of Attorney) lets you have peace of mind by allowing you to designate trusted representatives to manage your affairs in the event of mental incapacity. This legal document ensures that your wishes are upheld and decisions are made according to your preferences, even when you are unable to communicate or make decisions independently.

By proactively establishing an LPA, you can safeguard your interests and ensure continuity in the management of your affairs during challenging circumstances.

Overcoming the Stigma: LPA is Not Just for the Elderly

One common misconception about an LPA is that it’s only for the elderly or those facing terminal illnesses. But let’s clarify this: anyone can benefit from having an LPA. Whether you’re in the prime of your life or confronting a difficult health condition, planning early gives you control over your future. The LPA is about taking ownership of your life, ensuring your interests are safeguarded, and ultimately, providing peace of mind for both you and your loved ones.

How do I go about making a Lasting Power of Attorney?

Application for Lasting Power of Attorney (LPA) in Singapore has been streamlined thanks to the Office of the Public Guardian (OPG) portal. To secure your future, you simply need to follow a step-by-step process. But first, keep in mind that the process requires the appointment of 1 or 2 Donees and potentially a Replacement Donee.

You’ll begin by drafting the LPA application online. Just simply login with your SingPass.

After you’ve filled in your details and wishes, the Donees will be notified so they can accept their appointments. It’s crucial at this stage to ensure that all information is accurate and clearly expressed to avoid any potential disputes in the future.

The OPG portal assists you in preparing the necessary documents for the LPA application. Don’t forget that your application must be certified by a recognised authority. These can include a practising lawyer, a registered psychiatrist, or a medical practitioner accredited by the Public Guardian.

Once the application is finalised and the Donees have accepted their roles, your next step is to visit an LPA certificate issuer. They will certify your LPA and submit it on your behalf.

With the digitalisation of the LPA process, it now takes 4 weeks for your LPA to be approved. You will receive notification informing you of its status.

Besides managing the LPA application online, if you need further assistance, you can visit a ServiceSG centre, or contact the OPG hotline at 1800-111-2222. On the other hand, if potential legal conflicts are a concern, it would be wise to engage experienced LPA lawyers for legal advisory and LPA certification services.

[To ensure everyone has the opportunity to protect their future, please note that the S$75 application fee for Singapore citizens registration using Form 1 has been waived by the OPG until 31 March 2026. Certainly a compelling reason to put your affairs in order soon!]

Take the proactive step today and safeguard your future. With the modern convenience of online applications, creating an LPA has never been easier!

I don’t have a mobile phone. Can I still make an LPA?

Yes, you most definitely can. Visit a certificate issuer and they will assist you in making a hardcopy LPA!

If any of the following situations apply, you may opt to submit a hardcopy application form for your LPA:

1. The individual acting as the Donor, Donee, or Replacement Donee faces physical disability or other circumstances that prevent them from using the online application portal (OPGO).
2. OPGO is inaccessible for any reason.
3. The Donor lacks an electronic device required for creating and accessing a Singpass account to receive SMS messages.
4. The individual acting as the Donor, Donee, or Replacement Donee is ineligible for a SingPass account.

Ensure to include a cover letter explaining the reason(s) for opting for a hardcopy LPA application and provide relevant supporting documents if necessary. Approval for the submission of a hardcopy application form is subject to the discretion of the Public Guardian.

You may access the various forms of the hardcopy of an LPA to fill out here.

How does WillCraft help in creating an LPA?

Looking for a straightforward, user-friendly solution to create your LPA? WillCraft is your answer. With its intuitive online platform, you can seamlessly prepare your LPA application. You’re guided every step of the way by their experienced team, ensuring that your LPA is expertly crafted to suit your needs. Plus, with the added benefit of our online Will creation, making future preparations has never been simpler.

So, take hold of your future today. Safeguard your interests and provide reassurance for your loved ones. Make your Lasting Power of Attorney (LPA) with WillCraft, and rest easy knowing that no matter what tomorrow brings, you’re prepared.

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Want to know more about us?

Discover how your LPA can be tailored to meet your specific needs and preferences on our platform. Explore our Packages and Pricing page, where we offer transparent options for different services, all with flat fees and no hidden costs. Additionally, find answers to your most pressing questions on our FAQs page.

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Frequently Asked Questions

Will my Donee be able to make decisions on my behalf even though I am still mentally sound?

A Donee has no authority unless the LPA has been activated. To do so, the Donee would need to bring the Donor to a registered medical practitioner and be declared to lack mental capacity in making decisions on his or her personal welfare and personal property and affairs.

Can my Donee abuse their powers after my LPA is activated?

The Office of the Public Guardian oversees matters concerning mental capacity. Donees are required to act in the Donor’s best interest and abide by the Code of Practice. Donees will be expected to keep records of the decisions they have made on behalf of the Donor including providing supporting documents such as receipts or medical reports.

Can I revoke my LPA?

An LPA can be revoked at any time while you have mental capacity. You would need to inform the Office of the Public Guardian and your Donee that you are revoking your LPA.

Will my Donee have access to the LPA?

With the ease of the Office of the Public Guardian online portal, both the Donor and the Donee will have access to the LPA. All they would need to do is log into their account via their SingPass.

Will I get a hardcopy of my LPA?

The Office of the Public Guardian no longer provides a hardcopy of LPAs. You can always access your LPA via their online portal. However, if you still wish to have a hardcopy, you may print a copy from the online portal.

How long does it take for my LPA to be approved?

It takes 4 weeks for an LPA to be processed. You will receive a notification from the Office of the Public Guardian on the status of your LPA.

Why is it important to do LPA in Singapore?

Setting up an LPA (Lasting Power of Attorney) in Singapore is important because it allows you to appoint a trusted individual to make decisions on your behalf in case you lose mental capacity in the future. This legal document gives you control over who will manage your affairs and make decisions regarding your welfare, property, and finances when you are no longer able to do so yourself. By creating an LPA, you can ensure that your interests are protected and that someone you trust will act in your best interests during challenging times. It provides peace of mind knowing that your affairs will be managed according to your wishes, even if you are unable to communicate or make decisions independently.