A few weeks ago, a client asked me a question that caught me off guard.
“Fur… if something happens to me tomorrow – like stroke or dementia – who can actually manage my bank account or investments?”
Most people assume the answer is simple.
“Your spouse lah.”
But legally? It’s not that straightforward.
Without a Lasting Power of Attorney (LPA), even your own family may not have the authority to manage your finances, pay bills, or make medical decisions on your behalf.
And that’s exactly why Singapore just made a major move.
Starting 1 April, the government is making LPA Form 1 permanently free for Singapore citizens.
Which sounds like a small policy change…
But it could quietly become one of the most important financial planning tools Singaporeans ever sign.
Last week in Parliament, Minister of State Goh Pei Ming announced that Singapore will permanently waive the $70 fee for LPA Form 1 applications for citizens.
Previously, this waiver was temporary and set to expire on 31 March.
Now, it’s permanent.
The goal is simple: encourage more Singaporeans to plan ahead before unexpected health issues happen.
Here’s why it matters.
A Lasting Power of Attorney (LPA) allows you to appoint someone you trust – usually a spouse, child, or sibling – to make decisions for you if you lose mental capacity.
That includes:
- Managing your bank accounts
- Handling property matters
- Making financial decisions
- Deciding on personal welfare matters
Without an LPA, your family cannot automatically step in legally.
They may have to apply to court to become a deputy, which is:
- more expensive
- slower
- and much more complicated.
Right now, adoption is still relatively low.
About 404,000 Singaporeans – roughly 1 in 7 citizens – have an LPA.
Among seniors aged 65 and above, it’s about 1 in 4.
Which means the majority of people still don’t have one.
The government clearly wants to change that – especially as Singapore’s population ages rapidly.
And there’s another interesting detail.
Almost 98% of LPAs filed use Form 1, which grants general decision-making powers.
That’s why making this version free removes one of the biggest barriers to getting it done.
Here’s the thing most people misunderstand about LPAs.
They think it’s about death planning. But it’s actually about life planning – when you’re not actually living anymore.
Because the biggest financial risks in life aren’t always dying early.
Sometimes, the real risk is losing the ability to manage your life while still alive.
Think about conditions like:
- Stroke
- Dementia
- Alzheimer’s
- Severe accidents
- Brain injuries
Yes, you may have a CI payout. Perhaps even a Careshield Life supplement to provide for your daily necessities.
And when mental capacity is lost without an LPA in place, families often face a nightmare situation:
They want to help…
But legally, they can’t access bank accounts, sell property, or manage investments.
I’ve heard of families stuck waiting months for legal approval just to pay medical bills.
And that’s the hidden risk most people don’t plan for.
The LPA isn’t about pessimism.
It’s about protecting your family from unnecessary stress during the worst moments of life.
In Singapore, these situations are becoming more common as the population ages.
Let me show you why this matters with a simple scenario.
Imagine this.
Mr Tan is 52 years old.
He’s still working, paying his mortgage, and investing regularly for retirement. He also has insurance and some investments for long-term growth.
One day, he suffers a severe stroke.
He survives – but doctors say he has lost mental capacity and cannot make financial decisions anymore.
Suddenly, his wife faces a problem she never expected.
She wants to:
- withdraw money from his bank account to pay hospital bills
- manage his investments
- refinance or sell property if needed
- make decisions about long-term care
But legally…
She cannot do any of these immediately.
Because Mr Tan never made an LPA.
So the family now has to apply to court to become a deputy.
That process can take months, sometimes longer.
During that time:
- hospital bills pile up
- financial decisions get delayed
- stress levels explode
All this could have been avoided with a simple LPA done earlier.
And this is why I always say financial planning is not just about growing money or just getting insurance.
It’s also about protecting decision-making power.
Imagine building a strong investment portfolio…
Only for no one to be legally able to manage it if something unexpected happens.
That’s a gap many people overlook.
Another thing many Singaporeans don’t realise is this: An LPA does not take away your control today.
You remain fully in charge of your money and decisions.
The LPA only activates if a doctor certifies you have lost mental capacity.
Until then, life continues as normal.
So in a way, an LPA is like insurance for decision-making.
You hope you never need it.
But if you do, it protects your family from a lot of unnecessary hardship.
And now that the government has removed the $70 application fee permanently, the barrier is even lower.
You still need a certificate issuer (doctor, lawyer, or psychiatrist) to verify the document – which may cost anywhere from about $30 to a few hundred dollars – but the process itself has become much more accessible.
The bigger question now isn’t “Should I do it?”
It’s really “Who do I trust to make decisions for me if I can’t?”
Singapore is ageing quickly.
By 2030, 1 in 4 Singaporeans will be over 65.
Which means conversations about mental capacity, healthcare decisions, and financial management are going to become much more common.
But planning early changes everything.
An LPA doesn’t mean you expect the worst.
It simply means you’ve thought ahead.
You’ve made life easier for the people you love.
And honestly, the best time to do this is when you’re healthy and thinking clearly – not during a crisis.
So if you’ve never heard of the LPA before, take this as your reminder.
Sometimes the most powerful financial decisions aren’t about picking the right investment.
They’re about putting the right protections in place.
Stay informed, plan ahead, and get your LPA done, please.