Protect Your Family's Future with Lasting Power of Attorney (LPA)

Who can make decisions on your behalf if something goes wrong?

Your estate includes everything you own – bank accounts, pensions, property, health care wishes, pets, insurance policies*, investments, etc. Your estate net value considers your assets and liabilities, fees and expenses, and the type of property owned (if applicable).
An estate plan involves planning how you would like your estate distributed after you pass away. It is important to plan for the time when you are no longer able to care for your loved ones, no matter what your age or net worth.
There are multiple ways to transfer your estate, including a will, trust, probate and lasting power of attorney.

Lasting Power of Attorney (LPA)

When preparing for the future, you’re likely to have done the following:

Protected your future income through insurance.
Grown your existing income with investments.
Planned how you want your estate to be dealt with through estate planning.

However, have you planned for the unlikely event of losing your own mental capacity?

Failure to plan for losing your mental capacity can cause many difficulties for family members, so it is important to plan ahead.

What is an LPA?

Aside from writing a will and setting up a trust, another way to transfer your estate is through the lasting power of attorney (LPA). An LPA is a legal document that lets you (the donor) appoint one or more people (donees) to act on your behalf about your personal welfare, financial affairs and property, all in the event of your losing mental capacity.

The minimum age to make an LPA varies in different countries.

In Singapore, to make an LPA, you must be 21 or over. To be valid, you need to register an LPA with the Office of the Public Guardian (OPG). In Singapore, LPAs are becoming increasingly popular. The number of registered LPA’s has increased dramatically in recent years, from 2,681 in 2014 to 120,000 in 2022.

What Type of Decisions Can My Donees Make on My Behalf?

Decide where you live and what level of care you receive
Invest, plus receive income or dividend payments from your financial assets on your behalf
Rent or sell your property
Open or close bank accounts for you
Correspond on your behalf

Your Donees May Become Invalid or Voided If:

They lack the mental capacity to make decisions for you
You go through a divorce with a donee
The donee declares bankruptcy or is a trust company that becomes insolvent

What Happens if I Do Not Have an LPA?

Not having an LPA can cause all sorts of difficulties for your loved ones. Your loved ones will not have an automatic right to make legal decisions on your behalf. One of your loved ones will have to go through Court to become your deputy, a more time-consuming and expensive process than obtaining an LPA!

Choosing Your LPA Form

In Singapore, you can grant your donees general or specific decision-making powers.

LPA form 1

Grants general powers with basic restrictions to donees
Ability to appoint up to two donees and one replacement donee
Standard wording
98% of Singaporeans with an LPA choose this one

LPA form 2

Grants customised powers to the donee
Annex to Part 3 of this LPA form will require support from a lawyer

Once you have downloaded an LPA Form, you will need to:

Select your donees.
See an LPA certificate issuer (e.g. accredited medical practitioner, physiatrist, lawyer).
Submit your application to the Office of the Public Guardian by post.

Want to start? Download the LPA Form here.

You could consider an Advanced Medical Directive (AMD) if you believe that you would not want life-sustaining treatment if you become terminally ill and in an unconscious state. To obtain one, you need to be over the age of 21 and mentally sound. This is a completely voluntary decision.

Learn more about AMDs here.

LASTING POWER OF ATTORNEY. COMPLETED. ✅

Sources

MoneyFitt (ProConnect Technologies Pte Ltd) is not responsible for any errors or omissions, or for the results obtained from the use of this information and shall also not be liable for any damage or loss of any kind, howsoever caused as a result (direct or indirect) of the use of the app and its features, including but not limited to any damage or loss suffered as a result of reliance on the app. All information is provided “as is”, with no guarantee of completeness, accuracy, timeliness or of the results obtained from the use of this information. The information contained is not intended to be a source of advice or credit analysis with respect to the material presented. Any ideas and strategies should never be used without first assessing your own personal and financial situation, or without consulting a financial, tax or legal professional and independently researching and verifying information. We do not provide any financial advice, nor are we licenced to.