Understanding the Lasting Power of Attorney (LPA): A Critical Component of Future Planning
- Consult Team
- Apr 11
- 4 min read
In the realm of estate and incapacity planning, the Lasting Power of Attorney (LPA) stands as a cornerstone legal instrument under Singapore law. Governed by the Mental Capacity Act 2008 (Cap. 177A), the LPA allows an individual (the Donor) to appoint one or more persons (the Donee(s)) to act and make decisions on their behalf, in the event that the Donor loses mental capacity.
This legal arrangement offers peace of mind, continuity, and clarity for families and individuals alike — especially when unforeseen circumstances, such as a medical crisis or cognitive decline, compromise one’s ability to make decisions independently.
Key Legal Features of an LPA
Under the Mental Capacity Act, the LPA must be:
Voluntarily executed by a mentally competent Donor;
Certified by an accredited professional (e.g., a registered medical practitioner or a practicing lawyer) to confirm the Donor understands the nature and effect of the LPA;
Registered with the Office of the Public Guardian (OPG) before it becomes legally enforceable.
There are two distinct scopes of authority that may be conferred to the Donee(s):
Personal Welfare Powers - Relating to health care decisions, living arrangements, personal well-being, and day-to-day care matters.
Property and Affairs Powers - Covering the management of bank accounts, investments, real estate transactions, payment of expenses, and other financial matters.
The Donor may choose to grant authority in one or both domains, subject to specific conditions, limitations, or guidance as stipulated within the LPA instrument.
Why Execute a Lasting Power of Attorney?
1. Legal Certainty and Autonomy
An LPA enables individuals to proactively determine who will act on their behalf, ensuring that their affairs are managed in accordance with their preferences and values. Absent an LPA, any decision-making authority must be sought via a court-appointed Deputyship Order, a process that is often more time-consuming, costly, and administratively burdensome.
2. Mitigation of Family Disputes
The appointment of Donees through an LPA mitigates the risk of intra-family conflict and confusion over who is legally authorised to make decisions. It provides a structured and legally binding framework for decision-making in the Donor’s best interests.
3. Continuity of Financial and Personal Affairs
Should the Donor lose mental capacity, the Donee may step in promptly to ensure the continued management of the Donor’s affairs — from settling bills and mortgage payments to consenting to medical treatment — thereby preventing disruption or legal uncertainties.
4. Compliance and Protection Under Singapore Law
An LPA that is properly executed and registered provides Donees with the legal authority to act within the scope permitted, and protects them from liability provided they act in good faith and within the parameters of the Mental Capacity Act.
When Should an LPA Be Set Up?
It is prudent to set up an LPA while the Donor still retains mental capacity, typically well before any health deterioration. Capacity may be compromised unexpectedly due to accidents, neurological conditions such as dementia, or acute medical emergencies. Once capacity is lost, the opportunity to execute an LPA is forfeited, and a Deputyship Order becomes the only recourse.
Stamford Legacy’s Role in the LPA Process
At Stamford Legacy, we offer professional and comprehensive assistance throughout the entire LPA application lifecycle:
Preliminary consultation to assess client suitability and intentions;
Advice on selection of suitable Donee(s) and the scope of authority to be granted;
Coordination with accredited medical practitioners or legal professionals for certification;
Preparation and submission of LPA Form 1 or Form 2 (as applicable) to the OPG;
Ongoing guidance in navigating the responsibilities and duties imposed under the Mental Capacity Act.
Our service ensures that your LPA is drafted, certified, and registered with precision and compliance, reflecting your specific wishes and protecting your legal interests.
Conclusion
The Lasting Power of Attorney is not merely a bureaucratic formality — it is a legal safeguard and a testament of foresight, designed to protect your personal and financial welfare during vulnerable periods. By executing an LPA today, you retain control over tomorrow’s uncertainties and ensure your loved ones are equipped with the authority and clarity they need to support you.
📩 For professional LPA consultation or to initiate your application, contact Stamford Legacy or visit www.stamfordlegacy.com for more information.
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Warning
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