Why Should I Make Lasting Power of Attorney?

Published on 21st December, 2016 by Benjamin Li Yong Le

If a person does not make an LPA and loses his mental capacity, his family members would have to apply to the Family Justice Courts for a court order to give them the right to make decisions on his behalf.

If a person does not make an LPA and loses his mental capacity, his family members would have to apply to the Family Justice Courts for a court order to give them the right to make decisions on his behalf.

The application for the court order is called “Appointment of Deputy” and the market price ranges from S$4,000 to S$10,000 depending on the law firm.

A major advantage of the LPA is that the Donee would get quick access to funds necessary for the Donor’s care and maintenance. Banks will allow the Donee to take charge of the Donor’s bank accounts upon presentation of documents such as the original LPA and a doctor’s report certifying that you have lost the capacity to manage your own affairs.

If you lose your mental capacity without an LPA, funds in your bank account cannot be touched until a deputy is appointed. It could create stress and inconvenience for loved ones who would have to pay first for the person’s care and maintenance as well as expenses relating to applying for the court order.

When you do an LPA, you can choose whoever you want to be your Donee to make decisions on your behalf when you lose mental capacity for example your best friend, spouse or parent.

If you lose your mental capacity without an LPA, then usually it is your close relatives who will make the application for Deputy i.e. you do not have a choice of whom to make decisions for you and you Deputy may be someone whom you dislike or are on bad terms with e.g. a wife.

About the Author

Benjamin Li Yong Le (“Ben”) is an Advocate & Solicitor of the Supreme Court of Singapore. Ben is currently running his own boutique corporate and commercial law firm under the name and style of L’avocat Law LLC.