What is the Difference Between a POA and an LPA in Singapore?
- Consult Team
- Apr 11
- 4 min read
In Singapore, planning for mental incapacity or physical absence is not just prudent — it is a legal safeguard. Two legal instruments that serve this function are the Power of Attorney (POA) and the Lasting Power of Attorney (LPA). While both may sound similar, they differ significantly in purpose, scope, and legal requirements.
Overview of Power of Attorney (POA)
A Power of Attorney, governed under the Powers of Attorney Act (Cap. 352), is a legal document that allows a person (the Donor) to appoint another person (the Donee or Attorney) to act on their behalf in specific legal or financial matters. This is most commonly used for matters involving property transactions, corporate representation, or temporary absence from Singapore.
Key Characteristics:
General or Specific: A POA can be broad (general authority) or limited to specific acts (e.g., selling a house).
Revocable at Any Time: As long as the Donor is mentally capable.
Terminates Upon Incapacity: The POA automatically becomes void if the Donor loses mental capacity.
Common Usage: POAs are frequently used when the Donor is overseas for an extended period or is unable to attend to legal documentation personally.
📌 Example: A Singaporean working overseas may grant a POA to a family member to complete a property sale on their behalf.
Overview of Lasting Power of Attorney (LPA)
The Lasting Power of Attorney (LPA) is governed under the Mental Capacity Act (Cap. 177A) and is specifically designed for situations where the Donor may lose mental capacity in the future due to illness, injury, or ageing. It enables the Donor to appoint one or more Donees to make decisions on their behalf.
Types of Decisions Covered:
Personal Welfare (e.g., healthcare decisions, living arrangements)
Property & Affairs (e.g., banking, managing investments)
Key Characteristics:
Prospective in Nature: Only takes effect after the Donor loses mental capacity.
Requires Certification: Must be witnessed and certified by an LPA Certificate Issuer (lawyer, psychiatrist, or accredited medical practitioner).
Must Be Registered: Registration with the Office of the Public Guardian (OPG) is mandatory before the LPA becomes valid.
Designed for Protection: Prevents court intervention via Deputyship applications in the future.
According to the OPG, as of 2023, over 130,000 LPAs have been registered in Singapore, with a sharp rise in applications post-COVID as awareness of mental incapacity planning grows.
Legal Distinction Between POA and LPA
Aspect | Power of Attorney (POA) | Lasting Power of Attorney (LPA) |
Governing Law | Powers of Attorney Act (Cap. 352) | Mental Capacity Act (Cap. 177A) |
When It Takes Effect | Upon execution | Upon loss of mental capacity & after OPG registration |
Purpose | Specific legal/financial acts | Broad welfare & financial decisions when mentally incapacitated |
Revocability | Revocable at any time while Donor is of sound mind | Revocable only while Donor has mental capacity |
Ends When | Automatically ends if Donor becomes mentally incapacitated | Remains valid even after Donor loses mental capacity |
Registration | Not required | Mandatory with Office of the Public Guardian (OPG) |
Certification Requirement | No certification required | Must be certified by an LPA Certificate Issuer |
When Should You Use Each?
Use a POA When:
You are temporarily unavailable (e.g., overseas) and need someone to manage specific tasks like property sales, banking, or legal affairs.
You are mentally sound and simply need convenience.
Use an LPA When:
You want to pre-plan for the risk of dementia, stroke, or other conditions that could impair mental capacity.
You want to avoid costly and lengthy Deputyship proceedings if incapacity occurs.
Legal Risks of Not Having an LPA
If no LPA is in place and a person becomes mentally incapacitated, their family must apply for a Deputyship Order from the Family Justice Courts — a process that may take 3–6 months and cost $3,000–$10,000 in legal and medical fees.
Conclusion
While both the POA and LPA offer legal delegation of authority, they serve different legal and practical functions. The POA provides immediate authority for specific transactions, while the LPA provides long-term protection for personal welfare and financial decisions in the event of mental incapacity.
Establishing both documents as part of a holistic estate plan is a prudent step — ensuring that your interests are protected, regardless of life’s uncertainties.
📩 Need guidance? Speak to a consultant at Stamford Legacy to find out which solution best fits your needs. Early planning is not just wise — it’s empowering.
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