Since 2010, there are about 30,000 people under the age of 50 who have drawn up their LPA. But according to Parliamentary Secretary for Social and Family Development Eric Chua, more and more Singaporeans should get on board with drawing up their Lasting Power of Attorney (LPA).
What is a Lasting Power of Attorney (LPA) and why do you need it?
An LPA is a legal instrument that allows a person (the donor) who is at least 21 years old to voluntarily appoint one or more persons (the donees) to make decisions and act on behalf of him or herself should they lose their mental capacity and ability to make informed decisions one day. A donee can be appointed to make decisions and act on behalf of the donor in two broad areas of personal welfare and property and affairs matters.
If you are wondering about appointing an LPA, here’s what you need to know:
- An LPA enables a person to make a personal and considered choice of a trusted proxy decision-maker. This appointed person should be reliable, responsible, and competent to act in the donor’s best interests should they lose the ability to make decisions for themselves one day.
- An LPA also lifts the burden off of the donor’s family members or loved ones who are required to apply for a Deputyship Order should the donor lose their mental capacity without having an LPA in place.
What would happen if you don’t have an LPA?
To put things in perspective, here are some examples of what would happen to you and your loved ones if you don’t have an LPA when you lose the mental capacity to make decisions for yourself.
First things first, you must understand that if you don’t appoint someone to make decisions on your behalf, your family member is not automatically given the right to make legal decisions for you. What this means is that should you find yourself in a situation where you are unable to make informed decisions and you fail to draw up an LPA, you will unintentionally hinder your family members’ ability to care for you.
Since they were not legally appointed beforehand, they will face difficulties as they:
- Make care arrangements for you
- Manage your bank accounts
- Manage your properties
- Manage your finances
- Determine how to use your funds for your daily needs
Not to mention, your family members are also required to apply to Court to be appointed as your deputy before they can begin to make decisions on your behalf. This is the complete opposite of what you can do when you draw up your LPA. The deputyship application process will not only take a longer time as compared to making an LPA, but it will also cost you more.
As you can see, it is highly recommended for you to plan early and draw up your LPA while you are still able to think rationally and make informed decisions. Besides, the process of making an LPA is very simple with only two LPA forms—Form 1 and Form 2.
Form 1 is a standard version that allows you to grant powers with basic restrictions to donees. This form is used by 98% of Singapore Citizens.
Form 2, on the other hand, is for donors who want to grant customised and specific powers to their donees. The Annex to Part 3 of this form must be drafted by a lawyer.
LPA: Your Best Gift to Your Family
“Of all the gifts that I can give to my family members, I think the best one is the gift of CONVENIENCE. I give them the convenience to make decisions on my behalf should I not be able to make any sound decision for my well-being as well as managing my assets.”
What are the complications commonly faced by family members when one of the family members becomes mentally unsound? What is the difference between Powers of Attorney (POA) and Lasting Power of Attorney (LPA)?
During this 45-minute workshop, a case study will be shared and explained to help you understand the consequences of a family living with children with special needs or parents with dementia. This workshop is very appropriate for single parents, families with elderly parents, and parents with children with special needs.
If you are interested in understanding more about LPA and how it can further benefit you and your loved ones, our team at Probate Enterprise will be having an online workshop via Zoom meeting. Here are the details:
Topic: Will Writing Workshop: LPA & AMD – An Unsound-mind Case Study
Date: 22 Dec 2021 (Wed) 8 pm
FREELocation: Zoom Meeting
To register for the workshop, click here and register via the Zoom link.
Learn more about will writing and get the ideal probate solutions for you at Probate Enterprise.