Cost-effective Solutions for Families of Individuals of Low-value Estate without Lasting Power of Attorney Arrangement
Ministry of Social and Family DevelopmentSpeakers
Summary
This question concerns whether the Public Guardian can be empowered to manage low-value estates for individuals without a Lasting Power of Attorney, as raised by Mr Murali Pillai. Minister Masagos Zulkifli B M M clarified that this would create a conflict of interest because the Public Guardian is responsible for overseeing the conduct of donees and deputies. Instead, the Family Justice Courts’ Simplified Track offers a $540 alternative to the $3,000 to $9,000 legal fees associated with the Standard Track for deputyship applications. Additionally, the Ministry of Social and Family Development facilitates access to pro-bono or low-cost legal services through the Legal Aid Bureau and the Community Justice Centre for families in need. These existing policies provide cost-effective solutions for families to manage the bank accounts and property of individuals who lack mental capacity.
Transcript
49 Mr Murali Pillai asked the Minister for Social and Family Development whether the Public Guardian may be vested with the power to administer low value estates of individuals who have not made Lasting Powers of Attorney and lack mental capacities, so as to provide more cost-effective solutions for families of these individuals to manage their affairs instead of making applications to Court to be appointed as deputies.
Mr Masagos Zulkifli B M M: The Mental Capacity Act (MCA) provides for the appointment of donees or deputies to manage the property and affairs of individuals who lack mental capacity. Under MCA, the Public Guardian is responsible for dealing with representations, including complaints, about the way in which donees or deputies exercise their powers. Hence, it would not be appropriate for the Public Guardian to also manage the property and affairs of individuals who have not made a Lasting Power of Attorney and have lost their mental capacity. To do so would put the Public Guardian in a position of conflict of interest.
To make applying for deputyship more affordable for families, the Family Justice Courts has introduced a Simplified Track since 2019. Family members applying for general orders through the Simplified Track typically ask for and are granted powers to consent to medical and dental treatment, care arrangements and manage bank/CPF accounts and insurance policies. The cost of the Simplified Track is around $540, comprising a $40 Court filing fee and around $500 for mental capacity assessment, based on the fees charged by public hospitals. This is much lower than applying for complex orders through the Standard Track, which will incur both a higher Court fee of up to $300, as well as legal fees charged by lawyers of between $3,000 and $9,000.
Additionally, to support families in need, MSF works with partners to facilitate access to probono or low-cost services. Such families can seek legal assistance from the Legal Aid Bureau or support from the Community Justice Centre (a charity), if they are applying for deputyship without representation of a lawyer.