What is Power Of Attorney?
A power of attorney or letter of attorney is a written authorization to represent or act on another’s behalf in private affairs, business, or some other legal matter.
How Long Is A Power Of Attorney Valid In South Africa
To lose a power of attorney when it is needed most seems so illogical and unfair. Unfortunately, in terms of South African law, a power of attorney becomes invalid the moment the principal loses his or her mental capacity. The reason is that an agent is allowed to do only what the principal is able to do.
Who signs a power of attorney in South Africa?
The principal must sign a power of attorney giving the agent power to act on his or her behalf. The signature needs to be attested by one witness to confirm the principal’s signature.
Does a power of attorney need to be commissioned in South Africa?
There are no formalities for a POA, and it can be given orally or in writing. The best practice, however, is to have a POA in writing and signed by two witnesses. The POA should also state exactly what the agent is and is not authorized to do.
Disadvantages and liabilities to powers of attorney
Like everything else, giving or having power of attorney has occasional drawbacks.
Here are three reasons you want to think hard about giving someone you don’t know well and trust your power of attorney.
- Your lawyer-in-fact can handle things in ways you might not approve of. And they potentially can do something that is hurtful to you. For people who accept the job, there are few legal liabilities. A lawyer-in-fact will only be held responsible if you can prove intentional misconduct. If they make an honest mistake, they can’t be held legally responsible.
- You are the only person providing oversight of your agent’s actions. This limited power has led, in some cases, to elder abuse.
- Because of the potential for abuse, some banks, government offices, and other institutions that deal with financial matters don’t accept powers of attorney.