Possible New Law To Enable Early Financial Planning Before Mental Incapacity

The Ministry of Community Development, Youth and Sports (MCYS) is looking into whether to put in place a Mental Capacity Act. The proposed legislation will provide a legal framework to allow a person to voluntarily make advance plans for his own financial and personal welfare should he lose his mental capacity in the future. Under the proposed legislation, an individual can voluntarily make advance plans under a new statutory form of power of attorney to appoint a person (known as a donee) to decide or act on his behalf should he become mentally incapacitated.

The MCYS Press Release dated 8 March 2007 is as follows:

POSSIBLE NEW LAW TO ENABLE INDIVIDUALS TO VOLUNTARILY MAKE ADVANCE PLANS FOR THEIR FINANCIAL AND PERSONAL WELFARE IN THE EVENT OF MENTAL INCAPACITY

MCYS MEDIA RELEASE NO: 13/2007
DATE OF ISSUE: 08/03/2007

Public views on proposed law will be sought

The Ministry of Community Development, Youth and Sports (MCYS) is looking into whether to put in place a Mental Capacity Act.

The proposed legislation will provide a legal framework to allow a person to voluntarily make advance plans for his own financial and personal welfare should he lose his mental capacity in the future. Under the proposed legislation, an individual can voluntarily make advance plans under a new statutory form of power of attorney to appoint a person (known as a donee) to decide or act on his behalf should he become mentally incapacitated.

The proposed legislation will help Singaporeans plan ahead to ensure their personal and financial well-being in the event that they lose their mental capacity to conditions such as dementia, traumatic brain damage and stroke. It will help Singapore to prepare for more elderly persons in our population. The legislation will also be considering measures for parents of the disabled with severe intellectual impairment to have donees for their dependents before they pass on. The donees could be trusted family members or family friends.

Proposed legislation addresses current gaps

The proposed legislation aims to address the gaps in the existing system on decision making for persons who are mentally incapacitated.

Currently, under the Mental Disorders and Treatment Act (MDTA), the High Court can appoint a Committee of Persons or Committee of Estate to handle the decision making or property related decisions of persons who have lost their mental capacity. However, the appointment can only be done after a person has lost his mental capacity.

Tests for assessing mental capacity and duties of donees will be spelt out

The proposed Mental Capacity Act will be based on the key principle that a person has the mental capacity to make decisions unless proven otherwise. It will also be guided by the principle that decisions made on behalf of the person must be done for his best interests.

As such, the proposed legislation will set out a clear test for assessing and determining a person's capacity to make decisions for himself. This assessment could involve professionals such as doctors, social workers or lawyers if the matter involves a major decision such as a medical treatment or a legal contract.

The legislation will also provide a statutory framework to guide donees in fulfilling their duties. Donees will be given statutory protection for their actions as long as they act within the ambit of the legislation. At the same time, safeguards will be introduced to ensure that the decision makers do not abuse their powers.

The legal models of jurisdictions such as the UK, Japan, Germany and Hong Kong are currently being studied so as to come up with a system that caters best to the needs of our population.

Public views will be sought

The draft Bill is expected to be ready by May 07. Given the significance of the Bill, there will be extensive stakeholder and public consultation. Stakeholder and public consultation is expected to commence in the middle of this year.

ISSUED BY
MINISTRY OF COMMUNITY DEVELOPMENT, YOUTH AND SPORTS


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