Estate Planning Guide · Lasting Power of Attorney

LPA Form 1 vs Form 2: Which One Is Right for You?

Most people sign Form 1 without understanding what they are giving away. Here is what both forms actually mean — with real examples to help you decide.

A Lasting Power of Attorney (LPA) lets you appoint someone you trust — your donee — to make decisions on your behalf if you lose mental capacity. But before you sign anything, there is a choice you need to make: Form 1 or Form 2.

The difference between them is not administrative. It is the difference between broad authority and precise intention. Getting this wrong can have consequences that last decades.

The Core Difference

Understanding Both Forms — Side by Side

Both forms cover the same two domains — personal welfare, and property & affairs. What differs is how much control you retain over how those powers are exercised.

Most Common

Form 1
Standard LPA with General Powers

What it grants

Form 1 gives your donee broad, general authority over personal welfare and property & affairs. The scope is wide — your donee can act on your behalf across almost everything, without needing court approval for individual decisions.

Real-life example
Mr Tan signs a Form 1 LPA and names his eldest son as donee. Fifteen years later, Mr Tan develops dementia. His son now has authority to sell the family home in Tampines, withdraw from joint savings accounts, and move Mr Tan into a nursing home — all without court involvement. Mr Tan had always wanted the flat to pass to his daughter. He never documented this. His son, acting in good faith, does what seems practical.
The honest limitation

A Form 1 LPA relies entirely on your donee knowing your values and intentions — not just holding your legal powers. If your wishes were never clearly communicated, decisions will be made based on the donee's judgement, not yours.

Simpler to set up Lower legal cost Broad authority Less documentation of intent
Best suited for: someone with a single, deeply trusted donee who knows them well — and a relatively straightforward asset situation.
More Customisable

Form 2
Customised LPA with Specific Powers

What it grants

Form 2 allows you to define precisely what your donee can and cannot do. You can restrict powers to specific assets, require donees to act jointly, exclude certain properties, or add conditions that must be met before a power is exercised.

Real-life example
Mrs Lim has three children and a condo in Buona Vista she wants to remain in the family. She uses Form 2 to specify: her eldest daughter handles personal welfare decisions; her middle and youngest children manage finances jointly; and the condo cannot be sold without all three agreeing. She also carves out her business shareholding entirely — it has its own succession clause. Form 1 could not document any of this.
Why the extra step matters

Form 2 translates your intentions into binding legal instructions. It reduces the risk of well-meaning decisions that contradict your wishes, minimises family disagreements, and gives every donee a clear mandate.

Tailored powers Multiple donees Asset-specific rules Requires a lawyer to draft
Best suited for: significant assets, business interests, blended families, multiple donees, or anyone who has clear views about how specific decisions should be made.
"Form 1 is a key. Form 2 is a key with a map. The difference is not which door it opens — it is how your donee knows where to go once they are inside."

At a Glance

Form 1 vs Form 2: The Key Differences

Consideration Form 1 Form 2
Scope of powers General and broad across all areas You define exactly what is and is not included
Multiple donees Allowed, but limited customisation of who decides what Full control — different donees for different domains
Conditions and restrictions Cannot be added Can be built in — e.g. "donees must agree jointly before selling property"
Cost to set up Lower — no lawyer needed for drafting Higher — requires a lawyer to customise
Best for Simple situations with a single trusted donee Complex estates, multiple children, business interests
Risk if donee acts without full context Higher — broad powers, less guidance Lower — specific instructions reduce room for misinterpretation

Which One Is For You

A Simple Way to Decide

Neither form is universally better. The right choice depends on your specific circumstances. Use these as a starting point.

Consider Form 1 if...

Your situation is relatively straightforward

  • You have one donee you trust completely, who knows your values and wishes well
  • You do not have significant assets that require specific instructions
  • You are not concerned about conflict between family members
  • You have already had detailed conversations with your donee about your intentions
Consider Form 2 if...

Your situation has any complexity

  • You have more than one child and want to assign different roles to each
  • You own property you want protected with specific conditions
  • You have business interests that need to be handled separately
  • You want to restrict certain powers — e.g. selling your home requires unanimous agreement
  • You have a blended family or complex relationships between potential donees
"Your LPA appoints the person who speaks for you. Your ACP tells them what to say."

Before You Draft Your LPA

Have You Done Your Advance Care Plan?

Most people focus on choosing their donee — but overlook a document that determines whether that donee can actually do their job well. If your LPA grants personal welfare powers, your donee will be making healthcare and living decisions on your behalf. Without an ACP, they are doing so without knowing what you actually want.

Your LPA Answers

Who decides for you

The LPA appoints a donee and grants them legal authority to act. But it does not tell them what to do with that authority — especially when medical decisions are involved.

A personal welfare donee can consent to or refuse treatment, choose your care setting, and manage your daily wellbeing. All of this requires them to know your values, not just your signature.

Your ACP Answers

What you would actually want

An Advance Care Plan (ACP) documents your preferences for medical treatment — what interventions you would or would not want, your values around quality of life, and what a good death means to you.

When your personal welfare donee faces a difficult medical decision, the ACP gives them something to stand on. Without it, they are making their best guess — which may not be yours.

If your donee is also your Nominated Healthcare Spokesperson (NHS): the LPA and ACP work together as a complete system. The LPA gives your NHS the legal authority to speak to clinicians. The ACP gives them your documented wishes to speak from. Clinicians are expected to take both seriously. Without the ACP, even the best-intentioned NHS is navigating without a map.
Before you finalise your LPA, consider working through an ACP first — particularly if you are granting personal welfare powers. Download the Wealth Legacy ACP Preparation Guide to understand what an ACP involves, what questions it asks, and how to approach the conversation with your family and doctor.

ACP Preparation Guide · Free Download

Download the ACP Preparation Guide

A complete guide to understanding what an Advance Care Plan is, the eight key questions it asks, and how to prepare yourself — and your family — for the conversation. Written in plain language, designed to be read before you meet your doctor.

✓ A no-obligation conversation with Pei Xian within 24 hours  ·  ✓ Your details are kept strictly confidential

Not Sure Which Form Suits You?

The right form depends on your situation. Let's work it out together.

A 30-minute conversation is usually enough to determine which form fits your circumstances — and who your donee should be.

Speak with Pei Xian