In our fast-paced world, it’s easy to overlook planning for the unexpected. Many people think of wills and estate planning as the only steps they need to take for the future, but there’s another crucial document that’s often overlooked: the Lasting Power of Attorney (LPA). If you haven’t heard of it or aren’t sure if you need one, let’s explore why every Singaporean should consider setting up an LPA.
Understanding the LPA
A Lasting Power of Attorney is a legal document that allows you to appoint someone you trust (known as a donee) to manage your personal and financial matters if you lose the ability to make decisions yourself. This loss of decision-making capacity could be due to various reasons, such as an illness, accident, or simply the effects of aging.
The idea behind the LPA is to ensure that your affairs are managed according to your wishes, even if you’re not able to express those wishes yourself. Without an LPA, your loved ones might face the challenging and often expensive process of applying to the court for the right to manage your affairs.
Why the LPA is Important
The importance of having an LPA cannot be overstated. In the unfortunate event that you lose mental capacity, having an LPA in place means that your chosen donee can step in immediately to manage your affairs. This can include everything from handling your finances to making critical decisions about your healthcare and living arrangements.
Without an LPA, your family could be left in a difficult situation, needing to apply for a Deputyship order from the court to manage your affairs. This process can be time-consuming, costly, and stressful at a time when your family is already dealing with your health issues.
LPA vs. Will: Understanding the Difference
Many people confuse an LPA with a will, but these two documents serve very different purposes. A will outlines how your assets will be distributed after you pass away, while an LPA is concerned with managing your affairs while you’re still alive but unable to make decisions.
An LPA comes into play when you are incapacitated and need someone to make decisions on your behalf. It’s about ensuring that your wishes are respected during your lifetime, particularly when you’re unable to voice them.
Steps to Setting Up an LPA
Setting up an LPA in Singapore is straightforward. The process involves filling out the appropriate forms, having them certified by a qualified professional, and then registering the documents with the Office of the Public Guardian. This final step is crucial because it ensures that your LPA is legally valid and enforceable.
Once your LPA is registered, it’s there as a safeguard. You might never need it, but if you do, you’ll have peace of mind knowing that your affairs will be managed by someone you trust.
Conclusion
In summary, an LPA is an essential document that every Singaporean should consider as part of their future planning. It ensures that your personal and financial matters are handled according to your wishes if you ever lose the ability to make decisions yourself. Don’t leave your future to chance—take the necessary steps to set up your LPA and secure peace of mind for yourself and your loved ones.If you’re ready to set up your LPA or have questions about the process, our team at Adel Law LLC is here to help. Contact us today to learn more about how we can assist you with this important legal safeguard.
