A Power of Attorney (POA) is a legal document that allows someone (the donee) to act on behalf of another person (the donor) in financial, legal, or personal matters. In Singapore, POAs are commonly used for property transactions, business management, and personal affairs, especially when the donor is unable to act due to travel, illness, or other reasons.
1. Why Might You Need a Power of Attorney?
A POA can be useful in many situations, including:
a) Handling Property Transactions
- If you own property in Singapore but are overseas, you can grant a POA to someone to complete a property sale or rental on your behalf.
- The Housing & Development Board (HDB) requires a POA for certain property transactions if the owner is absent.
b) Managing Financial and Legal Affairs
- If you are frequently overseas or physically unable to manage financial transactions, a POA allows a trusted person to handle payments, investments, or legal matters for you.
c) Business Operations
- Business owners can use a POA to authorize someone to sign contracts, manage accounts, or make operational decisions if they are unavailable.
d) Medical and Personal Decisions (Only for a Lasting Power of Attorney – LPA)
- If you become mentally incapacitated, a Lasting Power of Attorney (LPA) allows a trusted person to make medical and personal care decisions on your behalf.
2. Types of Power of Attorney in Singapore
There are two main types of POAs in Singapore:
a) General Power of Attorney (GPA)
- Grants broad powers to the donee to act on behalf of the donor in financial and legal matters.
- Often used for property transactions or business operations.
- Becomes invalid if the donor becomes mentally incapacitated.
b) Lasting Power of Attorney (LPA)
- Specifically for situations where the donor loses mental capacity (e.g., due to dementia, stroke, or an accident).
- Regulated under the Mental Capacity Act (Cap. 177A) and must be registered with the Office of the Public Guardian (OPG).
3. How to Create a Power of Attorney in Singapore
a) General Power of Attorney
- Draft the POA document outlining the powers granted to the donee.
- Sign the document in the presence of a lawyer or notary public.
- If it involves property transactions, the POA must be registered with the Singapore Land Authority (SLA).
b) Lasting Power of Attorney (LPA)
- Complete the LPA Form (LPA Form 1 or LPA Form 2).
- Obtain certification from an LPA Certificate Issuer, such as a lawyer, doctor, or psychiatrist.
- Submit the LPA to the Office of the Public Guardian (OPG) for registration.
4. Key Considerations When Granting a POA
- Choose a trustworthy donee: This person will have legal authority over important matters, so it’s crucial to appoint someone responsible.
- Clearly define the scope of authority: Avoid granting unnecessary powers.
- Understand that a POA can be revoked: You can cancel a POA anytime, provided you are mentally capable.
A Power of Attorney ensures that your affairs can be managed smoothly if you are unable to do so yourself. Whether for financial, legal, or personal matters, choosing the right type of POA and appointing a reliable donee is crucial for effective estate planning in Singapore.