He made an LPA at 72 to protect his daughters. Here’s why he says you should, too
By appointing his daughters as joint decision-makers, this retiree hopes to spare his loved ones stress if he loses mental capacity
After retiring from a 35-year career with SMRT Corporation in 2021, Rahim Mohamed Raus was determined to ease the burden on his two daughters. Apart from staying active and working as a part-time customer service officer, he also sought advice from a realtor about how to access the value of his home in the future. One of the most significant steps he took was to learn about making a Lasting Power of Attorney (LPA), especially for protecting his daughters' interests.
In Singapore, an LPA enables individuals to appoint trusted persons, known as Donees, to make decisions on their behalf should they lose mental capacity. These decisions can range from personal welfare to property and affairs. However, there are common misconceptions surrounding LPAs. A frequent misunderstanding is that an LPA serves the same function as a will; this is not the case.
While a will addresses matters after death, an LPA becomes effective during the Donor's lifetime when they lose mental capacity. A Donee cannot draft a will on behalf of the Donor. Another misconception revolves around the timing of an LPA's activation. Lawyers point out that the Donor remains in control of their affairs until they lose mental capacity, and Donees can only step in once the Donor has been assessed by a medical professional.
Without an LPA, family members would have to go through a lengthy and costly court process called deputyship to make decisions on behalf of a loved one in such circumstances. This situation can cause additional stress and financial hardship at a difficult time. Even if a person already has a will or has limited assets, an LPA is still a crucial document.
It covers not only financial matters but also personal welfare decisions such as living arrangements and care. Additionally, the appointed Donee should be reliable, trustworthy, and possess good judgment since they will be handling practical responsibilities like managing banks, hospitals, care providers, and government agencies.
By creating an LPA, Rahim aimed to ensure clarity and reduce stress for his daughters in the event of mental incapacity. Drawing from his mother's proactive approach to legacy planning, he aimed to make the process easier for his family.
Written by urgent.news from Straits Times's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
