In Singapore, estate planning involves more than just drafting a will. It also includes preparing for potential situations where you may not be able to make decisions for yourself due to mental incapacity. This is where a Lasting Power of Attorney (LPA) comes into play.
Understanding the roles of both a will and a LPA is crucial for comprehensive estate planning. This article explores whether you need to have both a will and a LPA in place concurrently and highlights the importance of each document.
Understanding Wills and Their Importance
What is a Will?
A will is a legal document that outlines how a person’s assets and belongings will be distributed after their death. It also allows individuals to appoint executors to carry out their wishes and guardians for any minor children. In Singapore, creating a will ensures that your assets are distributed according to your wishes rather than the state’s intestacy laws.
Benefits of Having a Will
Having a will provides clarity and peace of mind, knowing that your loved ones are taken care of and your assets are allocated as you intend. It also helps prevent disputes among family members and can streamline the probate process, making it easier and faster for your heirs to receive their inheritance.
What is a LPA?
A LPA is a legal document that allows you to appoint one or more persons, known as donees, to make decisions on your behalf if you lose mental capacity. In Singapore, LPAs are governed by the Mental Capacity Act and can cover decisions related to personal welfare, property, and financial matters. The document is particularly useful in cases where an individual becomes incapacitated due to illness, injury, or aging.
Types of Decisions Covered by a LPA
LPAs can cover a wide range of decisions, including:
- Healthcare and Medical Decisions: Choosing treatments, consenting to surgeries, and making end-of-life care decisions.
- Personal Welfare Decisions: Decisions about daily living arrangements, diet, and social activities.
- Property and Financial Decisions: Managing bank accounts, paying bills, selling property, and handling investments.
The Importance of LPA Certification
What is LPA Certification?
LPA certification involves verifying that the donor (the person making the LPA) understands the document’s purpose and implications. This process helps ensure that the LPA is made voluntarily and without undue influence. In Singapore, LPA certification must be conducted by a certificate issuer, such as a registered medical practitioner, lawyer, or psychiatrist.
Why LPA Certification is Essential
LPA certification is crucial because it protects the donor’s interests and ensures the validity of the document. Without proper certification, the LPA may be challenged or deemed invalid, which could lead to complications in decision-making when the donor becomes incapacitated.
Do You Need Both a Will and a LPA?
Distinct Roles of Wills and LPAs
While both a will and a LPA are critical components of estate planning, they serve distinct purposes. A will deals with the distribution of assets after death, while a LPA allows appointed individuals to make decisions on behalf of the donor while they are still alive but incapacitated. Having both documents ensures comprehensive planning for both eventualities.
Benefits of Having Both Documents
- Comprehensive Estate Planning: Ensures your wishes are respected both during your lifetime (via the LPA) and after your death (via the will).
- Avoiding Disputes: Reduces the likelihood of disputes among family members over healthcare decisions or asset distribution.
- Streamlined Decision-Making: Provides clear guidance for loved ones and healthcare providers, reducing stress and uncertainty in difficult times.
Making and Registering a LPA in Singapore
The Process of Making a LPA
To make a LPA in Singapore, you need to:
- Choose Your Donees: Decide who will be responsible for making decisions on your behalf.
- Complete the LPA Form: Fill out the LPA Form 1 (for standard powers) or Form 2 (for custom powers).
- LPA Certification: Have the form certified by an approved certificate issuer.
- Submit for Registration: Submit the completed and certified form to the Office of the Public Guardian (OPG) for registration.
Considerations When Choosing Donees
When selecting donees for your LPA, consider individuals who are trustworthy, reliable, and capable of making decisions in your best interest. It’s also advisable to discuss your wishes and preferences with your donees to ensure they understand their responsibilities.
For Help with Your LPA Certification, Get in Touch with Us!
Protecting your future and ensuring your wishes are respected is a critical aspect of life planning. Whether you need to draft a will, set up a LPA, or seek LPA certification, Keystone Clinic & Surgery can assist you.
Our team of professionals is dedicated to providing comprehensive legal and medical guidance. Contact us today to schedule a consultation and take the first step towards securing your future and peace of mind.
References
Fsp-law.com. 2021. Wills and Lasting Powers of Attorney: Do I Need Both?. https://www.fsp-law.com/wills-and-lasting-powers-of-attorney-do-i-need-both/
Cpf.gov.sg. 2023. I Finally Made My LPA (Lasting Power of Attorney)! How About You?. https://www.cpf.gov.sg/member/infohub/educational-resources/have-you-made-your-lasting-power-of-attorney#:~:text=A%20will%20kicks%20in%20only,is%20important%20to%20set%20up.&text=Form%201%20works%20for%20general,online%20via%20the%20OPG%20portal.\
Mylegacy.life.gov.sg. Write a Will. https://mylegacy.life.gov.sg/end-of-life-planning/write-a-will/
Msf.gov.sg. Code of Practice Mental Capacity Act (Chapter 177A). https://www.msf.gov.sg/docs/default-source/opg/code_of_practice_eng_oct16.pdf