A sudden illness often leaves little time to consider legal arrangements.

An elderly parent suffers a severe stroke and is no longer able to make decisions. Bills require payment, insurance matters need attention, and housing arrangements need reviewing and management. 

Upon approaching the bank, the family is told that being next-of-kin does not automatically grant them access to the account or decision-making rights. 

It is at this point that the family realises no Lasting Power of Attorney (LPA) had been made. 

Situations like this arise more often than many anticipate. So how should you deal with it?

What Is a Lasting Power of Attorney (LPA)? 

A Lasting Power of Attorney (LPA) is a legal document allowing a person, also known as the Donor, to appoint one or more individuals, known as Donees, to make decisions on their behalf if they lose their mental ability in the future. 

An LPA may cover personal welfare matters, such as healthcare and living arrangements, as well as property and financial matters, including management of bank accounts, investments, and property. 

For an LPA to be valid, it must:

• Be made while the Donor still has mental capacity
• Be signed in the presence of an approved Certificate Issuer 
• Be registered with the Office of the Public Guardian (OPG) 

The LPA only takes effect when the Donor loses mental capacity.

Why Family Members Do Not Automatically Have Authority 

In Singapore, being a spouse, parent, or adult child does not automatically give a person legal authority to make financial or personal welfare decisions for another adult.

The key principles are: 

• Formal legal permission must be given before someone may act on behalf of an adult who lacks mental ability.
• Close family members are not exempted and cannot access bank accounts, sell property, manage investments, or make certain personal welfare decisions for the incapacitated, unless they are legally appointed
• When a valid and registered LPA is active, the appointed donee can only act within the scope of authority granted
• If there is no LPA after mental capacity is lost, family members must apply to the Family Justice Courts to be appointed as a deputy under the Mental Capacity Act. Authority is given only after the court grants approval.

Access to Singpass and Digital Government Services 

Digital services such as Singpass require the account holder’s consent and authorisation for each transaction, which someone who has lost mental capacity cannot do. 

Contrary to common belief, family members (including spouse and children) are not permitted to use that person’s Singpass. 

Using login credentials without proper authorisation may be considered misuse of the account and may create complications with government agencies and financial institutions.

What Happens If There Is No LPA? 

An LPA cannot be made once a person loses mental capacity. 

In that case, a family member must apply to the court to be appointed as a deputy under the Mental Capacity Act. This requires medical proof of incapacity, and authority is only granted after the court issues an order. 

Until then, institutions will not recognise family members as decision-makers, which can cause delays in urgent matters.

Implications for Families 

When there is no LPA in place, families may face challenges while waiting for court approval.

These may include:

• Delays in accessing funds needed for household or living expenses
• Inability to manage investments
• Difficulty selling or transferring property
• The need to coordinate with financial institutions, banks, and the court system
  

These challenges often arise when families are already under emotional stress, and the lack of authority to act can add further strain. Furthermore, court applications for deputyship may take time and involve legal costs, depending on complexity.

How Will an LPA Help Provide Clarity? 

An LPA allows individuals to decide in advance: 

• Who will act for them 
• What decisions that person may make 
• Whether authority covers personal welfare, financial matters, or both 

Planning ahead does not assume a loss of capacity will occur. Instead, it clarifies decision-making arrangements should that situation arise.

How to Make an LPA in Singapore 

Making an LPA generally involves the following steps : 

1. Decide who to appoint as Donee
2. Determine the scope of authority to be granted 
3. Complete the appropriate LPA form on the Office of the Public Guardian (OPG) website
4. Have the form certified by an approved Certificate Issuer (CI), such as a lawyer or doctor 
5. Your CI will submit the completed LPA form to the OPG for registration
   

Each step ensures that the document is properly executed and legally recognised.

Key Takeaways: 

• Family members do not automatically have legal authority to act for a mentally incapacitated person
• An LPA must be made while the individual still has mental capacity
• Without an LPA, families must apply to court for deputyship before decisions can be made

Understanding these distinctions allows individuals and families to plan ahead and avoid unnecessary delays, costs, and uncertainty during difficult times. 

How LP Law Can Help 

Let us make mental capacity planning straightforward and stress-free. We guide you through the preparation and registration of your LPA to ensure it meets your needs and legal requirements.

Speak with our team today to understand your options and put the right arrangements in place.