Singapore has an aging population, with estimation of 900,000 people reaching age 65 & above in 2030. The Mental Capacity Act (MCA) was introduced to help Singapore’s rapidly ageing population plan for their personal and financial well-being in the event they lose mental capacity in the future.
A Lasting Power of Attorney (“LPA”) is a legal document which allows a person who is 21 years of age or older (‘donor’), to voluntarily appoint one or more persons (‘donee’), to act and make decisions on his behalf as his proxy decision maker if he should lose mental capacity one day. Donees can be appointed to cover two broad areas: personal welfare (including health care decisions) as well as property & affairs matters (including finance matters).
A will is different from a LPA in that a will allows you to plan how your affairs will be managed after death, while a LPA allows the you to plan how your affairs will be managed when you are still alive, but unfortunately without mental capacity, such as when one suffers from stroke, brain injury, dementia, mental health problems and so on.
Watch this video by Office of the Public Guardian (OPG)
In absence of a valid LPA, the court may appoint a deputy (individual or licensed trust company) to make decisions on behalf of a person who lacks mental capacity. The appointment can take a long time & cost at least $5,000!
The simplest way to do your LPA is to complete a generic OPG Form 1 for appointing your preferred donees both for personal welfare and property & affairs. Please arrange an appointment at OPG and the registration costs $50.
The other option is used OPG Form 2 which is customized and requires a lawyer to draft. This allows you to give more flexibilities, details and instructions for your donees. You have to pay for the registration at Office of the Public Guardian OPG. Rockwills Trustee can help act as your property and affairs donee with a small acceptance fee. You can then have the terms and other special powers or restrictions of your donee drafted.
Customers who has set up a trust can benefit themselves in the event of mental incapacity.
|LPA Appointment Services||Fees|
|Acceptance Fee as Property & Affairs Donee (if there is a Trust set up with Rockwills Trustee Limited)||$500|
|Acceptance Fee as Property & Affairs Donee (if only a Will is written by Rockwills corporation Pte Ltd||$800|
|Estimated Legal Fees of an Advocates & Solicitors and disbursement in relation to:
(*This fee is applicable if our standard template is used)
-Drafting of Powers granted to Property & Affairs Donee
-Certificate Issuer – Lasting Power of Attorney (LPA) Certificate
|Payable to Office of the Public Guardian (OPG) for Application to register a LPA – Form 2||$200|
|Disbursements (eg attendance, transport charges per visit to the OPG||$100|
Annual Administration Fee when the client is certified mentally incapacitated
The annual admin fee for estate on movable assets is as follows:
|Value of Movable Assets||Charges & Minimum Fee|
|Below S$1 million||0.5% (min S$3,000)|
|Below S$1 million to S$3 million||0.4% (min S$5,000)|
|Below S$3 million to S$6 million||0.3% (min S$9,000)|
|Below S$6 million to S$10 million||0.2% (min S$12,000)|
|Above S$10 million||0.1% (min S$20,000)|
The fee for immovable assets is 5% of gross annual rental income/ market rental that the property is reasonably expected to fetch subject to a minimum of S$2,000 per title/lot.
Contact us for details