Preventing Family Disputes

Background:
Mr. Lim, a 65-year-old retiree, began to show early signs of dementia, and over time, his condition worsened, leaving him unable to manage his daily finances or make crucial medical decisions. However, Mr. Lim had not created a Lasting Power of Attorney (LPA), and this led to a challenging situation for his family, who were unsure of how to proceed with his care and financial management.

Outcome Without an LPA:
Without an LPA, Mr. Lim’s family found themselves in a tough spot. His children disagreed on various aspects of his care—from his medical treatments to the management of his bank accounts. These disagreements escalated to the point where the family had to involve the court to appoint a deputy, a process that took several months and led to significant legal fees. In the meantime, important decisions about Mr. Lim’s care were delayed, adding unnecessary stress to an already difficult situation.

Learning Point:
This case highlights how essential it is to set up an LPA, especially when dealing with progressive conditions like dementia. If Mr. Lim had established an LPA early on, he could have appointed one of his children to act as his donee, giving them the legal authority to make decisions on his behalf. This would have ensured swift and efficient decision-making, prevented family conflicts, and protected Mr. Lim’s well-being and finances.