A Will takes effect only after the Will maker passes away.

The LPA takes effect when the donor loses his mental capacity while he is still alive.

The Will deals with the distribution of a person’s assets to his loved ones on his death.

The LPA deals with the donor’s assets largely for the donor’s own benefit.

The ownership of assets remains with the donor whereas with a Will, the assets are distributed.

A person who has lost mental capacity cannot make decisions for himself.

The PWD provides the appropriate support for the donor in terms of care and concern. This is analogous to what a guardian provides for a child under the age of 21 or what a deputy provides for an adult above age 21 who lacks mental capacity.

The PAD acts as an extension of the donor to provide care and concern over the donor’s property. This is analogous to that of a trustee.  However, unlike the trustee, the PAD does not have legal ownership of the donor’s property whereas the trustee does.

The PAD and the trustee are similar in that neither has beneficial rights over the donor’s property.

Yes, you can.

You may have a change of heart about who your donee is or the powers you wish to give. You can revoke your LPA as long as you are mentally capable to do so.

Your LPA may be revoked automatically in certain conditions such as:

• you the donor or your donees pass away;
• you the donor or your PAD becomes bankrupt;
• you the donor and your donee who is your spouse get divorced (unless the LPA states that the LPA should not be revoked in the event of divorce); and
• your donee loses mental capacity.

Your donee must act in your best interest.

The Office of the Public (OPG) is empowered to investigate cases where the donee may be abusing his position and taking advantage of the donor.

The LPA can also include restrictions that limit the powers of the donee.

These are some additional safeguards that can be considered:

• Tell your family and close friends that you have made an LPA and who the donees are. If you do so, they are more likely to check on you if your LPA is ever invoked.
• Appoint professional donees to act on your behalf.
• Appoint donees to act jointly where both donees have to agree before an action is taken. Of course, if the donees are at loggerheads with one another, a joint appointment can cause delays.

Your made-in-Singapore LPA is recognised only in Singapore.

If you lose mental capacity while overseas, your Singapore LPA would not be recognised in that foreign country. This also means that your LPA will work only on assets that are in Singapore.

Your LPA cannot deal with your bank account in Australia or your condo in Malaysia. For those overseas assets, you will have to consult a legal practitioner in that foreign country about their mental capacity laws there.