In an era where advancements in technology and medicine have extended life expectancy, society faces a growing challenge: the rise of dementia and other ageing-related mental health issues. While we have developed tools to prolong physical health, no innovation has yet solved the cognitive decline that often accompanies ageing. For many, this loss of mental capacity can leave them unable to make crucial decisions about their personal welfare or financial affairs.

The Lasting Power of Attorney (LPA) was introduced as a solution, allowing individuals to appoint trusted people — known as donees — to make decisions on their behalf should they lose mental capacity. However, not everyone has a reliable family member or friend they can trust to take on this responsibility. To address this critical gap, the Office of Public Guardian (OPG) implemented the Professional Deputies and Donees (PDD) Scheme under the Mental Capacity Act that provides the opportunities for registered professionals in the community to step up and render assistance to such persons – often, single elderly or those without children of their own.

This article delves into the purpose and function of the PDD Scheme, explaining in greater detail what the PDD Scheme is and how it works, what a Professional Donee is, who would benefit the most from the scheme, and the safeguards in place to ensure ethical and competent decision-making. In a world where ageing presents new challenges, the PDD Scheme offers a lifeline for those who have no one else to depend on.

 What is the PDD Scheme and how it works?

The PDD Scheme allows individuals to appoint a Professional Donee to act on their behalf if they lose mental capacity in the future. A donee is a person or an entity who is authorized to make decisions on behalf of someone who is no longer able to make decisions for themselves due to a lack of mental capacity. This scheme is designed for individuals who wish to ensure that their affairs are managed by professionals who have the necessary expertise and experience to handle complex decision-making on their behalf. This is particularly useful in cases where an individual may not have family members or trusted individuals who can take on this role, or if the individual prefers a neutral party to manage decisions relating to their welfare or property.

The Mental Capacity Act provides the legal basis for appointing a Professional Donee, ensuring that the person is qualified, trained, and subject to strict oversight by the OPG. Once a donor loses mental capacity, the Professional Donee’s powers are then activated based on the terms laid out in the LPA.

What/ Who is the Professional Donee?

A Professional Donee is a trained, registered individual appointed by a donor through an LPA to act on his/ her behalf if he/ she loses mental capacity. Unlike lay donees, who are typically family members or friends, Professional Donees are appointed for a fee and are required to possess specialised expertise to manage decisions related to the donor’s personal welfare or financial affairs.

Who Stands to Benefit the Most?

The Professional Deputies and Donees Scheme is especially beneficial for individuals who face challenges in appointing a trusted decision-maker due to a lack of family support or other complex circumstances:

1. Elderly without immediate family: For older adults without children or close relatives, appointing a Professional Donee ensures that their affairs will be managed responsibly, preserving their dignity and interests.
2. High-Net-Worth individuals: Individuals with substantial assets or businesses may prefer the expertise of a Professional Donee to manage their complex financial affairs, ensuring their wealth is preserved and utilized in accordance with their wishes.
3. Families seeking neutrality: In cases where family disputes or estranged relationships complicate the appointment of a lay donee, the Professional Donee offers an impartial decision-maker who is bound by professional ethics and the law.
4. Persons with complex needs: Individuals with ongoing medical, financial, or caregiving requirements benefit from the specialised skills of Professional Donees, ensuring that critical decisions are made by qualified and trained professionals.
5. Persons in long-term care: Those residing in care facilities without regular family oversight can rely on Professional Donees to advocate for their welfare, protecting them from potential neglect or mismanagement.

Core Safeguards Under the Law

The Mental Capacity Act (Chapter 177A) and The Mental Capacity (Registration of Professional Deputies) Regulations 2018 (the “Regulations”) establish stringent safeguards to ensure that Professional Donees act responsibly and in the best interests of vulnerable individuals. Eligibility criteria require the Professional Donees to be qualified/ trained individuals, such as lawyers, accountants, medical practitioners, or social workers, with a minimum of five years of continuous professional practice, a clean financial record, and no history of fraud or dishonesty.

Applicants must also complete specialised training programs mandated by the OPG to ensure they possess the necessary skills for making decisions related to personal welfare or property management. A rigorous “fit and proper” evaluation assesses their history for professional misconduct, legal proceedings, or disciplinary actions, with adverse findings disqualifying them from registration.

Registration as a Professional Donee is valid for two years and is subject to renewal. The OPG monitors compliance, conducts audits, and holds the authority to revoke registration in cases of non-compliance, misconduct, or disqualifying events. Professional Donees are also required to maintain accurate records and may be subject to reporting obligations to ensure transparency and accountability.

To prevent exploitation, the regulations prohibit individuals with convictions for dishonesty or fraud from serving as Professional Donees. Additionally, Professional Donees must avoid conflicts of interest and adhere strictly to their legal and ethical duties.

These measures found in the MCA and Regulations collectively ensure the integrity of the PDD Scheme and the protection of those it serves.

Conclusion

The PDD Scheme represents a critical step toward safeguarding the dignity and welfare of individuals who lose mental capacity. By leveraging professional expertise, robust legal safeguards, and transparent oversight, the scheme mitigates risks of neglect, mismanagement, or exploitation.

As Singapore’s population ages, initiatives like these underscore the government’s commitment to ensuring that every individual’s interests are protected, regardless of family circumstances. By understanding and engaging with the framework provided under the Mental Capacity Act, individuals can make informed choices for their future care and asset management.

How Can STMP Help?

Mental capacity planning requires careful consideration of legal frameworks, individual circumstances, and the intricacies of LPA. At SMTP, we provide Professional Donee services to our clients, with our legal team ensuring that personal welfare and asset management matters are handled with expertise, integrity, and precision. These services are supported by SMTP’s Wealth & Legacy Screening process, which allows legal team to delivery tailored solutions that address the unique needs of each client.

SMTP’s approach emphasizes understanding the unique context of each client to provide specific and appropriate advice. This ensures that decisions and plans are crafted in accordance with the individual’s best interests and legal requirements. Whether you are considering appointing a Professional Donee, need advice on structuring an LPA, or are exploring other aspects of family legacy planning, our team of experienced and trained lawyers are ready to provide expert advice and tailored solutions, helping you navigate the complexities of estate planning with confidence and clarity.

Should you or your clients require any assistance in these areas, please feel free to reach out to our Business Development Team to schedule a consultation. We look forward to walking this journey with you, ensuring your peace of mind and protecting your legacy.