A Power of Attorney (POA) is a legal document which allows an individual to appoint another person, or organization, to act on their behalf.
In South Africa, any person over the age of 18 can be granted power of attorney, on condition that the agent is both competent and trustworthy of making decisions regarding financial and legal matters.
Naturally, it’s essential to appoint someone whom you trust and has the essential skills and experience to effectively manage your affairs. This could be a friend or family member, or a professional agent, such as an accountant or attorney.
There are several reasons why one might consider having a POA.
For instance, if you are unable to manage your own affairs due to illness or injury, a POA can ensure that your interests are protected. If you are planning to travel overseas for an extended period, you may want to appoint someone to manage your financial affairs while you are away.
Having a POA gives you the benefits of:
Convenience: A POA can make it easier for you to manage your affairs by delegating specific responsibilities to another person or organization.
Peace of mind: Comes with knowing that someone you trust is looking out for your interests.
Flexibility: Your specific needs and requirements can be met by tailoring the POA.
Cost-effective: The appointment of a POA can be more cost-effective than optional legal arrangements, (i.e. guardianship or curatorship).
It is interesting to note that with a:
General POA, your parents, for example, can give you POA because they are not mobile. This falls away at death or when they become incapacitated.
Specific POA can be given to a conveyancer, for example, to do a property transfer. This falls away on completion of the transfer.
We suggest you consult with a suitably qualified person or lawyer to assist with the understanding and drafting of the required POA.
