Understanding the Lasting Power of Attorney (LPA)
Planning for the future is an essential aspect of personal and estate management. A key component of this is the Lasting Power of Attorney (LPA), a legal document that allows you to appoint trusted individuals, known as donees, to make decisions on your behalf if you lose mental capacity.
In Singapore, the LPA is governed by the Mental Capacity Act and provides a framework to safeguard the interests of individuals who might become unable to make decisions about their welfare, property, or financial matters. Creating an LPA ensures that your preferences and decisions are upheld, even when unforeseen circumstances arise.
However, not all LPAs are the same. There are two distinct forms available—LPA Form 1 and LPA Form 2—and understanding their differences is crucial in making an informed decision.
Overview of Lasting Power of Attorney (LPA) in Singapore
LPA Form 1 vs. LPA Form 2
Comparison Table
Aspect
|
LPA Form 1
|
LPA Form 2
|
---|---|---|
Format
|
Standard prescribed form
|
Customised legal document
|
Purpose
|
Standard form for most individuals
|
For those who need customised arrangements
|
Powers Granted
|
Standard powers covering:
- Personal welfare - Property & finance - Healthcare |
Customisable powers with:
- Specific restrictions - Special conditions - Complex arrangements |
Flexibility / Level of Customisation
|
Limited to predefined powers and responsibilities
|
Highly flexible, enabling detailed customisation
|
Preparation Process
|
Can be done independently with no legal drafting required
|
Must have a lawyer to draft and structure the document
|
Cost
|
Minimal (only requires notarisation and registration fee)
|
Higher cost due to legal consultation and drafting fees
|
Use Case
|
Suitable for most standard arrangements
|
Suitable for complex family or business arrangements requiring detailed customisation
|
Legal Drafting Required
|
Not required
|
Required, with the assistance of a legal professional
|
Processing Time
|
Relatively faster and more straightforward
|
Longer approval time
|
Approval
|
Requires a Certificate Issuer (CI) for certification and signing of the LPA
|
|
Suitable For
|
Individuals with straightforward needs
- Simple family situations - Basic assets - Standard requirements |
Individuals with specific, detailed needs
- Complex assets - Business owners - Special family circumstances |
Certificate Issuer
|
Can be accredited by various professionals, e.g.:
- Medical practitioner - Lawyer - Psychiatrist |
Must be a lawyer
|
Amendments
|
Not possible without creating new LPA
|
Can include specific amendment provisions
|
Decision Factors to Consider When Choosing Between LPA1 and LPA2

Nature of Assets: Simple or Complex
LPA Form 1: Suitable for individuals with straightforward financial and personal matters, such as a single property or a few bank accounts.
LPA Form 2: Ideal for those with intricate asset portfolios, including multiple properties, investments, or business interests.
Decision-Making Preferences: General vs. Specific
LPA Form 1: Provides donees with general authority to make decisions.
LPA Form 2: Allows you to specify detailed instructions and conditions tailored to your unique circumstances.
Budget Considerations
LPA Form 1: More cost-effective due to its standardised nature.
LPA Form 2: Involves higher costs for customisation and potential legal consultations.
Family Dynamics
LPA Form 1: Suitable for families with straightforward or harmonious relationships.
LPA Form 2: Beneficial for individuals with unique family structures, such as blended families, or business succession needs.
Case Studies/Examples

Example 1: Straightforward Financial and Personal Matters
John is a 40-year-old professional with a portfolio comprising his home, savings, and CPF funds. He wants to ensure that his wife can manage his finances and make healthcare decisions for him if necessary.
Solution:
John can do up an LPA Form 1 and appoint his wife as his Donee, granting her general powers with basic restrictions. This is a cost-effective and suitable option for his straightforward needs.
Example 2: High-Net-Worth Individual with Complex Estate Planning Needs
Mrs Lim, a 65-year-old entrepreneur, owns multiple businesses, properties, and overseas investments. She also has specific instructions regarding the management of her businesses and care arrangements for her special needs son.
Solution:
Given the complexity, LPA Form 2 is ideal for addressing her unique requirements. For her Personal Welfare, she can choose to appoint someone who understands her needs and preferences, or she can choose to appoint a Professional Donee, to serve as her proxy decision maker.
For her property and affairs, she can choose a Professional Donee like a Licensed Trust Company, ensuring impartial and experienced management, even in complex situations.
Conclusion
Choosing the right LPA form is a crucial step in safeguarding your future. While LPA Form 1 caters to individuals with simple needs, LPA Form 2 provides the flexibility required for complex circumstances.
Carefully assess your assets, decision-making preferences, budget, and family dynamics before making a choice. Consulting a legal professional or estate planning expert can provide valuable insights tailored to your situation. Take the first step today to ensure your wishes are respected and your loved ones are cared for.
Disclaimer: This article provides general information and should not be considered legal or financial advice. Please consult with qualified professionals for personalised guidance tailored to your specific circumstances.