Do I really need a LPA?

We easily define financial planning as the process of making decisions about what happens to our money and assets. We all know about the importance of setting short-term and long-term goals, saving and investing and growing our little nest egg for a cushy retirement. Somewhere in this beautiful picture there lies a more morbid tone; what if something untoward happens and you are not longer able to make sound financial decisions? What would happen to all your hard-earned money and accumulated assets? How will your family get by if you happen to be the sole breadwinner?

This is why we cannot stress enough the importance of estate planning, which includes writing a will to specify how you want your estate to be distributed and more importantly, making a Lasting Power of Attorney (LPA). This legal document enables you to appoint a trusted representative to make decisions on your behalf when you are unable to.

What is the process of making a LPA?

Diagram source: https://www.publicguardian.gov.sg/opg/Documents/CSC.MSF.OPGWebsite/Documents/LPAProcess_1Nov12.pdf

Who should I choose as my “donee”?

Most people will choose their spouse, their children, their parents, or their close friends. It is recommended you choose someone you trust deeply; who understands your values and priorities, and will honour your wishes accordingly. No matter who your decide to appoint as your donee, the most important thing is that you discuss decision-making responsibilities with them sooner rather than later.

An infamous case of a LPA that went diastrously awry was the case of Yang Yin. Madam Chung Khin Chun, a wealthy widow had trusted her former China tour guide, Yang Yin to take complete control of her fortune. She granted a Lasting Power of Attorney (LPA) to Yang Yin in 2012, and it was found that he misappropriated vast amounts of money, as well as neglected his duties as the appointed caregiver. Following a tedious court tussle, in September 2016, he was sentenced to 6 years in jail and revoked of Madam Chung’s LPA. This lesson drives home the utmost importance of being selective and choosing someone who is sincere, trustworthy and has only your best interests at heart.

What happens without an LPA?

When you are mentally incapacitated, you are no longer able to decide who will be “responsible” for you (the legal decision-making authority). To gain this right, your next of kin will need to apply to be appointed by the court as a deputy. This process can be quite tedious, lengthy and will incur more

legal costs; whereas the LPA takes effect automatically once you have been determined to have lost mental capacity. Without an LPA, the court may also appoint someone who you might not want to be your caregiver/guardian.

To review an existing estate plan, or to create one if you have yet to, speak to our Planners for a detailed consultation of your needs. You may also like to register for an upcoming seminar where our Principal Consultant Mr Stephen Chew will be speaking about estate planning, and all you need to know about will writing and LPA.

JOIN US at this upcoming seminar where our Principal Consultant Mr Stephen Chew will be speaking about estate planning and everything you MUST know about it.

Topic: Have Your Will, Have Your Way
Speaker: Stephen Chew, Principal Consultant, Summit Planners
Date: 19 January 2017, Thursday
Time: 7.00pm to 10.00pm
Venue: Suntec Singapore Convention & Exhibition Centre, Level 3, Room 327
Admission: $18 per person

For Attendees Only!
Stephen himself and his team of experienced Planners will be glad to offer a personalised and exclusive review of your needs for estate planning.