The Quiet Strength of Preparedness: Why Every Wealthy Family Needs a Lasting or Enduring Power of Attorney

Many wealthy individuals take care to ensure that their Will is in order, providing for their assets to be distributed according to their wishes after their lifetime.

But what happens in the event of incapacity? Without proper arrangements in place, managing financial affairs, investments, and even personal care decisions can become difficult, or fall into the hands of the courts.

What is a Lasting Power of Attorney or Enduring Power of Attorney?

A Lasting Power of Attorney (LPA) or an Enduring Power of Attorney (EPA) are legal documents that allow someone (called the Donor) to appoint one or more trusted individuals (Donees or Attorneys) to make decisions on the Donor’s behalf if they become unable to make those decisions themselves.

Having an LPA or EPA in place ensures that if you ever lose the capacity to make your own decisions, a trusted person has the legal authority to manage your affairs smoothly and in accordance with your wishes, protecting your loved ones from uncertainty.

In the Singapore context, an LPA takes effect when the Donor loses mental capacity, and can cover decisions relating to personal welfare, property & affairs, or both.

Why do I need an LPA or EPA?

Preventing Family Conflict in Times of Stress

Periods of crisis can bring out differing opinions even in close families. Without clarity about who has authority, family members might disagree about medical treatment, business management or investments decisions.

In the absence of an LPA or EPA, loved ones may also face lengthy and stressful legal proceedings to gain the authority to act on your behalf. This can lead to delays, strained relationships, and even conflict among family members.

An LPA or EPA provides certainty. By clearly designating one or more individuals to make decisions, you provide clarity and reduce the emotional and administrative burdens on your family during already difficult times, preventing potential disputes and misunderstandings.

By setting this structure early, you not only protect your wealth - you protect family harmony.

Protecting Family Financial Assets

For wealthy families, financial holdings often extend well beyond bank accounts. There may be multiple real estate holdings, trust structures, shareholdings, and family foundations. Handling these assets requires specialized knowledge. Without an appointed donee or attorney, their administration may fall into inexperienced hands or face bureaucratic limbo.

An LPA or EPA allows you to designate not just anyone, but the right person for your unique circumstances - whether a spouse, a child, a trusted adviser, or a professional fiduciary. In some cases, families even choose co-donees/co-attorneys - for instance, pairing a family member who knows their values with a lawyer or accountant who understands the financial intricacies.

This level of control ensures that the management of your financial assets continues to reflect both your personal and professional standards. Decisions around investments, asset reallocation, or even lifestyle expenditures can continue to align with your principles and goals.

Without such a provision, your loved ones could face significant administrative delays and emotional strain in petitioning courts or authorities to act on your behalf. During a health crisis, those delays may cause lost investment opportunities, unmanaged financial obligations, or even operational disruptions to family enterprises.

Creating an LPA or EPA is, in essence, a continuation of your decision-making legacy. It preserves the way you manage money, protect others, and make choices, regardless of life’s unpredictability.

Continuity for Family Businesses

If you own a business, the implications of incapacity ripple far beyond personal finances. Leadership uncertainties can affect employees, clients, and partners.

An LPA or EPA can designate someone familiar with your business operations to handle business decisions, sign contracts, authorize transactions and manage day-to-day operations. Many executives and entrepreneurs view this as part of sound corporate governance - a contingency plan that upholds stability and investor confidence.

For family-owned firms, this can also be an invaluable succession mechanism. It ensures that operations continue smoothly under the stewardship of someone who understands both the business dynamics and the family values intertwined with them.

Enduring Philanthropic Giving

Philanthropy is a defining feature of many private wealth legacies. Whether supporting education, healthcare or cultural causes, continuity matters.

A donee or attorney who understands your philanthropic philosophy can continue managing foundation activities, approving grants and ensuring that your charitable objectives remain fulfilled.

Health, Dignity and Personal Wishes

While many think of LPAs or EPAs as financial tools, they can also apply to personal welfare and health. A health and welfare LPA or EPA gives someone you trust the ability to make medical or care decisions if you cannot.

Wealth can provide access to the best care and medicine in the world, but only if the right decisions can be made quickly and effectively. An LPA or EPA ensures that your wishes relating to treatments, privacy, or lifestyle are respected and enacted quickly.

For wealthy individuals accustomed to managing their own lives, this is profound - it is about retaining dignity and choice, even in times of vulnerability.

Peace of Mind is Priceless

Above all, the greatest benefit of a Lasting or Enduring Power of Attorney is peace of mind. It ensures that your voice is always present, your affairs are protected, and your loved ones are supported with clarity and confidence.

For wealthy families, it is a quiet but powerful safeguard - an invisible shield that preserves not only wealth but dignity, harmony, and intention.