
Are you looking to gain authority over your legal affairs in South Africa? Have you heard of the power of attorney and want to learn more about it? If so, you’ve come to the right place.
In this article, we’ll explore the power of attorney in South African Law. We’ll look at what it is, how it works and steps to setting one up. We’ll also discuss why this type of authority might be necessary and some practical considerations when setting up a power of attorney.
In South Africa, a power of attorney is a document that grants authority to another person – known as the ‘attorney-in-fact’ – to manage your affairs when you can no longer do so or are unable to make a decision for yourself. This document is legally binding, so it’s important that anyone considering setting up a power of attorney understand its implications.
Read on for our guide to understanding and setting up a power of attorney in South Africa.
What Is Power of Attorney (POA) in South Africa?
Power of Attorney (POA) is a legal document that grants another person the authority to act on your behalf and make decisions such as handling your finances, signing documents, and taking legal action. It is important to remember, however, that POA only applies when you are unable to make decisions for yourself, such as when you are incapacitated or overseas.
In South Africa, there are two main types of POAs—general and special. General Power of Attorney grants an individual broad powers over your finances and other affairs while you are still legally competent to manage them. Special Power of Attorney on the other hand grants an individual more limited powers, such as to manage one specific asset on your behalf or act for you in a limited range of circumstances.
Once in effect, a valid POA must be respected by all third parties with whom it is presented and cannot be unilaterally revoked by the grantor unless otherwise provided for in the document itself or by court order.
Different Types of POA in South Africa
Power of Attorney (POA) is a legal document that encompasses many different types of authorization according to the South African Law. It allows a person (called the ‘attorney’) to act on behalf of another person (called the ‘principal’) in a specific or general manner, depending on the document’s content.
The four main types of POA that you should know about are:
- General Power of Attorney – This authorizes your attorney to manage all personal and business affairs on your behalf.
- Limited Power of Attorney – Grants only specific rights and powers in a limited capacity.
- Enduring Power of Attorney – Gives authority over financial matters when a principal loses mental capacity.
- Revocable Power of Attorney – Allows an attorney to act on behalf of the principal but can be revoked at any time by the principal with written notice.
It’s important to understand that each type has its own set of legal requirements and other considerations before you embark on this process. While it may seem complicated, understanding the basics and consulting with an experienced lawyer can help make this process much simpler for you.
The Roles and Responsibilities of an Attorney
When it comes to power of attorney in South African law, understanding the roles and responsibilities of each party is essential for success.
Let’s take a closer look at what each party has to offer:
Attorneys
An attorney is appointed by the principal to act on said principal’s behalf. The principal gives permission for the attorney to carry out legal tasks, such as signing documents, managing property, and dealing with finances.
The attorney must act within the scope of the instructions received from the principal and in accordance with South African law. Additionally, they are obligated to always act in their clients’ best interests – which usually involves making decisions that promote their clients’ wellbeing.
Principals
The principal is responsible for appointing an attorney they trust to act in their best interests – this typically involves choosing someone with a thorough understanding of South African law. They must also provide clear instructions on what tasks or activities they want their attorney to perform or manage on their behalf.
It is important for principals to understand that when granting someone power of attorney, they give away certain rights and have less control over certain activities compared to if they were carrying out those activities themselves. Therefore, it is essential for individuals who are considering granting someone power of attorney in South Africa to understand all of the responsibilities associated with doing so before entering into an agreement with an attorney.
What Is Required to Put a POA in Place?
So, you know what the Power of Attorney is and what it can do – but how do you put one in place?
Under the South African Law, there are certain requirements that must be met in order for a Power of Attorney to be valid.
Who Can Appoint a Power of Attorney?
Only an adult or juristic person (such as a company, trust or body corporate) may appoint someone to act as his/her/its attorney. This means that if the principal (the person who is appointing an attorney) is under the age of 18, then he/she cannot legally enter into an agreement for a Power of Attorney.
Writing a POA Document
The POA document itself must be in writing and signed by both parties – that is, both the principal and attorney – in front of two witnesses. It must also specify the names and addresses of both the principal and attorney, as well as describe their relationship. Finally, the document should clearly state exactly what authority is being given to the attorney and any limitations or restrictions on this authority, such as prohibiting them from selling or mortgaging property.
Once these requirements have been met and all parties involved have signed off on it, then a valid Power of Attorney has been created according to South African law.
What Is the Duration of a POA?
It’s important to understand that Power of Attorney is a contract between two parties, and as such, is not permanent. The duration of a POA depends on what it was stipulated in the agreement.
Generally, there are three types of POAs:
- General POA – This type of POA gives the attorney authority to act on behalf of the principal for an indefinite period, until it is canceled or revoked by either party.
- Specific POA – This type of POA restricts the attorney’s power to specific tasks or acts, and can only be used for a specified period of time. It automatically expires when the tasks have been completed or the time has elapsed.
- Durable POA – This type of POA is similar to a general POA but can outlive the incapacity or death of the principal, unless it is specifically stated in the agreement that it does not survive incapacity or death.
It is important to note that whichever type of POA you choose in South Africa, it must be signed in front of two witnesses or officers from Home Affairs who will attest that all powers granted by means of Power of Attorney are real and legitimate.
FAQs About Power of Attorney in South Africa
Power of Attorney (POA) can be a confusing legal concept to navigate. To help you better understand how POA works in the South African legal system, here are some frequently asked questions and answers:
Q: What is Power of Attorney?
A: Power of Attorney is a legal document that grants someone else the authority to act on your behalf. A person who is given this authority is known as an attorney. The power granted by the POA can range from making decisions about finances to executing decisions about medical care.
Q: What are the various types of Power of Attorney?
A: There are four main types of POA recognized in South African law. These include General Power of Attorney, Durable Power of Attorney, Limited Power of Attorney and Springing Power of Attorney. Each type of POA has its own set of rules and regulations which must be followed.
Q: Who can be an attorney?
A: An attorney is a trusted individual who possesses certain qualities such as honesty, integrity, and trustworthiness. Anyone over the age 18 can be appointed as an attorney as long as they are legally competent to do so according to the South African Law Society (SALS).
Q: What are the obligations associated with being an attorney?
A: As an attorney, you are legally obligated to act in your principal’s best interests at all times and adhere to all applicable laws when making decisions on their behalf. Additionally, you have a fiduciary responsibility to protect their assets and represent them in all legal matters for which you have been granted authority by the POA document.
In conclusion, for South African citizens, it is important to understand and respect the power of attorney frameworks as prescribed in South African law. It is also important for South African citizens in positions of authority and responsibility to become familiar with the protocols associated with power of attorney, so that they can make informed decisions when allowing a representative or proxy to act on their behalf. Furthermore, those in South African who are entrusted with the power of attorney by another should be aware of their respective duties and responsibilities, in order to properly protect the interests of their principals.