With the reduced application fee for LPA Form 2 for Singapore Citizens, it may be a suitable time to consider whether a customised Lasting Power of Attorney (“LPA”) is appropriate for you.
A Lasting Power of Attorney allows you to appoint trusted individuals or professional donees to make decisions about your personal welfare and property and financial affairs if you lose mental capacity in the future.
What is a Lasting Power of Attorney Form 2?
Unlike LPA Form 1, which contains standard powers, LPA Form 2 allows you to include customised powers, conditions and restrictions tailored to your circumstances.
For example, you may specify:
- the individuals to whom your Donee may give cash gifts;
- how your investments should be managed;
- circumstances in which your Donee must obtain advice before making certain decisions; or
- a requirement for your Donee to consult a specified person, such as your financial adviser, before making certain decisions.
These customised instructions can provide your Donee with clearer guidance on how you wish your affairs to be managed. They may also help reduce uncertainty where your financial affairs are more complex.
Who should consider an LPA Form 2?
A customised Lasting Power of Attorney may be particularly relevant if you have:
- substantial assets;
- investment portfolios;
- business interests;
- complex financial arrangements; or
- specific wishes concerning financial support for family members.
For example, if you wish to give your Donee specific instructions about managing investments or providing financial assistance to particular family members, these wishes may be considered when drafting the customised powers in your LPA.
The appropriate wording will depend on your circumstances and the powers, conditions and restrictions you wish to include. Careful drafting is important to ensure that your intentions are clearly expressed.
Need advice on LPA Form 2?
If you are considering an LPA Form 2 in Singapore and would like to understand whether a customised LPA is suitable for your circumstances, you may wish to obtain legal advice before preparing the document.
