The consequences of becoming “P’! LPA at work!

Many of us actively plan ahead for the future by saving up, investing, and buying insurance. We do this because we want to be sure that we are prepared for a rainy day. We also want to be sure that we don’t inconvenience our family members too much when they care for us in the future.

But how many of us actually plan for the possibility that we may lose our mental capacity?

Losing mental capacity is a real challenge to our physical and emotional well-being, and creates stress for our family members. It is therefore something worth planning ahead for.

What is an LPA?

An LPA is a legal document that lets you (the donor) appoint one or more people you trust to be your donees. They will act and make decisions on your behalf should you lose mental capacity one day.

You must be 21 or over and have the mental capacity to make your LPA.

Your donees can be appointed to act in two broad areas: personal welfare, and property and affairs.

What if you don’t have an LPA?

If you don’t have an LPA and you lose mental capacity, your family member is not automatically given the right to make legal decisions on your behalf. This can hinder their ability to care for you.

As they have not been legally appointed to do so beforehand, they may face difficulties trying to:

  • Make care arrangements
  • Manage your bank accounts and properties
  • Decide how best to use your funds for your day-to-day needs

Your family member will have to apply to Court to be appointed as your deputy before they are authorized to make decisions and act on your behalf.

Compared to making an LPA, the deputyship application process will not only take longer to complete but will also cost more.

Which LPA form should you use?

There are two LPA forms, with LPA Form 1 being the most widely used:

  • Form 1:  A standard version that allows donors to grant general powers with basic restrictions to donees.
  • Form 2: For donors who wish to grant customized and specific powers to their donees.

How to make an LPA?

The infographic provides a useful guide on the process to make an LPA.

Take note: Application fees are waived until 31 March 2023.

To encourage more Singaporeans to pre-plan, the Office of the Public Guardian has extended the LPA application fee waiver for Singaporeans making an LPA Form 1 to 31 March 2023.

In conclusion, consult your estate planner on the issues that may arise to prevent any uninvited consequences of losing your mental capacity or becoming “P”.

To find out more, attend our webinar (Grow Assets Even After Death) or have a FREE Estate Planning Risk Assessment to find out how prepared are you for your loved ones if you’ve passed on yesterday.

Important: The information and opinions in this article are for general information purposes only. They should not be relied on as professional financial advice. Readers should seek unbiased financial advice that is customised to their specific financial objectives, situations & needs. This advertisement or publication has not been reviewed by the Monetary Authority of Singapore.

Published By:

Chew Hock Beng 周福明

Hock Beng (福明) is a highly qualified individual in the field of financial planning and consultancy. His impressive array of certifications, including Certified Financial Planner, Chartered Financial Consultant, Chartered Life Underwriter, and Chartered Family Office Specialist, reflects his dedication to mastering various aspects of financial services.

Moreover, his active involvement in community initiatives and appointments in prestigious organization such as the Financial Planning Association of Singapore (FPAS) and IFPAS underscores his commitment to the profession and the betterment of the financial planning industry.

Hock Beng’s roles as an Honorary Treasurer, Exam Board Chair, and member of various sub-committees demonstrate his leadership capabilities and his willingness to contribute to the advancement of financial education and standards.

As a certified instructor with Financial Perspectives and an Adjunct Trainer with Falco Academy, Hock Beng not only enhances his own expertise but also shares his knowledge and skills with aspiring financial professionals, thereby enriching the industry as a whole.

Currently, Hock Beng’s focus on managing a team of independent financial adviser representatives highlights his leadership and mentoring abilities. Through training, mentoring, and coaching, he plays a pivotal role in developing the next generation of financial advisers, ensuring that they uphold the highest standards of professionalism and service to clients.

For decisive action towards financial guidance, mentorship, coaching, or professional collaboration, don’t hesitate to call/WhatsApp Hock Beng today.

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