South Africans should be allowed to appoint someone who can look after their well-being and assets when they cannot do so themselves.
Normal power of attorney lapses when the person who extended the power loses the legal capacity to act. Image: AdobeStock
Calls for the introduction of lasting or enduring powers of attorney (LPA or EPA) into South African legislation from several quarters over many years have been falling on deaf ears.
Yet it is an urgent matter since a power of attorney extended to any other person lapses when the person who extended the power loses the legal capacity to act. This could be due to mental illness, advanced age, head injury or when the person enters a comatose condition.
“The decision about who will take charge of your affairs is taken out of your hands if you are no longer able to do so yourself,” says Louis van Vuren, CEO of the Fiduciary Institute of Southern Africa (Fisa).
The only option in SA is ‘after the fact’, where the high court or the Master of the High Court is given the power to appoint a curator or an administrator on your behalf.
The appointment of a curator (curator bonis and/or curator ad persona) is a formal court process before the high court. The curator bonis looks after the financial affairs of the person while the curator ad personam looks after the physical well-being of the person. It can be the same person.
Costly, lengthy and cumbersome
“This is an expensive process because one must engage the services of an advocate to bring an application to the high court,” says Van Vuren.
“Even if it is unopposed, it could still be a lengthy and costly process.”
It is not available to most South Africans due to the cost.
However, the Mental Health Care Act provides for the appointment of an administrator by the Master’s office, which is less formal and cumbersome.
Any person over 18 years can apply to the Master. However, the person to be placed under administration must be diagnosed with a mental illness by a mental health care practitioner; or must suffer from a severe or profound intellectual disability. This includes a range of scenarios – from assisted living to full-time care – and is not limited in relation to the cause of the disability.
In the case of small estates (R200 000 in assets and R24 000 in annual income), the Master can appoint an administrator without an investigation, while it is required to investigate when it comes to amounts above that.
“We are not suggesting that the administrative process is ineffective, it is simply beyond comprehension why someone cannot make their own arrangements in the form of lasting or enduring powers of attorney,” says Van Vuren.
In the United Kingdom and European countries legislation provides for LPA or EPA, which ensures that financial directions and advance notices about medical care can be enforced in cases of dementia or end-of-life situations.
The advantages of lasting or enduring powers of attorney
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