The main advantage of a power of attorney is that the donor’s affairs will be managed by the attorney if the donor is unable to administer them personally, such as if the donor goes overseas, becomes ill or becomes mentally incapacitated.
In some circumstances, the power of attorney will need to be registered with the Land and Property Information Department in order to be valid.
There are a number of important features of powers of attorney, including the following:
- Decisions of the attorney when acting on behalf of the appointer are taken to be decisions of the appointer (although there are circumstances where this is not the case, for example where the attorney acts outside their powers)
- The appointer must have the appropriate mental capacity to grant the power of attorney
- The attorney must be at least 18 years of age