Power Of Attorney (POA)

  • An instrument created by a person who entrusts someone to act on his behalf.
  • Permits or entrusts another person to perform certain acts for you e.g. carry out important banking transactions, buying & selling of property :
    • “Donor” – Creator of the instrument.
    • “Donee” – Recipient of the authority to act.
  • A POA created under S.48 of the Conveyancing and Law of Property Act (CLPA) may be deposited with the Supreme Court.
  • A POA may be revoked at any time.

Lasting Power Of Attorney (LPA)

  • No LPA? What happens?
    • Imagine for some reason you are incapable of managing your finances, taxes, medical care or other important responsibilities due to an accident or long term illness.
    • A spouse or another family member cannot automatically take over your responsibilities.
    • Someone will have to apply to Court to be appointed as a Deputy to handle your affairs and property matters.
    • Application to Court very costly and time consuming.
    • Who to apply to Court to be appointed may be a contentious issue.
  • What is it?
    • A Legal Document appointing someone you trust to act for you or make decisions on your behalf should you lose the mental capacity to do so in the future.
  • What is covered?
    • Your Donee can make decisions on the following:-
      • Property and affairs – dealing with banks, CPF matters, selling of property.
      • Personal welfare matters – decisions on care, where you live etc.
  • Who can make a LPA?
    • 21 years old and above.
    • Have mental capacity.
    • Not be a bankrupt if LPA relates to property and affairs matters.
  • A POA may be revoked at any time.
  • Who can be your Donee?
    • 21 years old and above.
    • Must not be a bankrupt if acting for you on property and affairs matters.
  • Why make an LPA?
    • Allows you to choose the person you trust and who will act in your best interest.
    • Allows you to determine the decisions you want to be made on your behalf when you lose mental capacity.
    • Allows you to plan for your health and physical needs and ensure you do not suffer neglect or financial abuse.

*Note: Unlike a Will which takes effect only AFTER DEATH, the LPA takes effect when a person is STILL ALIVE but have lost his mental capacity.