Monday 26 September 2016

COURAGEOUS CONVERSATIONS: THE LAW RELATING TO A POWER OF ATTORNEY

Mrs Sonja Smith, Mr Rian Jansen Van Rensburg, Dr Hannetjie Van Zyl-Edeling, Neels Coertse, Mrs Aderyn Exley and Prof. Ricky Snyders at the 22nd South African Psychology Congress held at Emperors Palace, Johannesburg on Friday 23 September 2016

We presented lectures at the 22nd South African Psychology Congress held at Emperors Palace, Johannesburg on Friday 23 September 2016 on the topic: THE COURAGEOUS CONVERSATION SYMPOSIUM: BE MINDFUL OF YOUR LEGACY. It is estimated that about 70 psychologists attended this specific symposium. You can have a look at PsySSA's website by clicking on this link.

I presented a lecture on the law relating to powers of attorney. You can read my notes below:

COURAGEOUS CONVERSATIONS LECTURE CJC
Presented at the 22nd South African Psychology Congress in Emperors Palace on 23 September 2016
THIS DOES NOT CONSTITUTE LEGAL ADVICE.
PLEASE CONSULT YOUR ATTORNEY ASAP!
·         Thank you for the invitation.
·         My presentation will focus on a very, very narrow aspect of the law of agency:
o   Parents suffering from dementia.
·         Spherical approach
·         The Law of Agency
·         Power of Attorney
o   What is a power of attorney?
§  General power of attorney.
§  Special power of attorney:
·         Example: to pass transfer.
o   How is it obtained?
o   Does a power of attorney terminate?
§  Let us quickly look (remember just on the surface) at the legal relationship between you and your aging parents.
§  Once again there are rules and exceptions to these rules/principles.
§  Of course an agent may renounce the power given to him.
§  Death or change of status of the agent [that is you]?
·         One example: insolvency of your estate?
o   End of your authority to act on behalf of someone else.
§  Death or change of status of the principal [that is your dad].
§  Change of status. What does that mean?
§  At time when the power of attorney was signed, the principal [your dad] was mentally incapable of understanding what he was doing, the authority is of course non-existent.
§  The case of supervening mental incapacity is much, much more difficult [the case where he started to suffer from dementia and the progression of this illness].
§  Your parent starts to suffer from dementia, not much, but you notice something is not right. I venture to state that the entire relationship between you, your siblings, other family members and your father and/or mother change forever.
§  What does the law have say about this fundamental change in relationship?
§  Let's look at what happens on ground level (according to our law as it stands this is illegal and not to be encouraged):
·         The agent (mostly a child with the power of attorney to act on daddy’s behalf) continuous to act.
·         This state of affairs is rather dangerous.
·         Your dad for instance is now completely "gone" and you continue to act in terms of your power of attorney.
·         Your estate is sequestrated or to begin with, you were an insolvent when you got the PA.
·         Or your estate is subsequently sequestrated: your actions are null and void and can be attacked in court.
·         Or, you are solvent and you continue to act although your dad is "gone".
§  The current law in SA is that the PA came to an end and all of your actions can be attacked in court.
§  Application in terms of the Mental Health Act. This a route that I don't recommend.
§  The other route is an application in the High Court in terms of Rule 57 with the heading: De lunatico inquirendo appointment of curators in respect of persons under disability and release from curatorship.
§  Expensive court application.
§  Time consuming.
§  Two appearances.
§  The SA LAW COMMISSION is presently (for a very long time already and not near to completion) is looking into the matter.
§  Maybe one day we will have an enduring power of attorney. I think it is necessary.
§  Are there possible solutions?
·         Yes.
o   Enter into an agreement with your dad the terms and conditions maybe:
§  You are “employed” to do certain things for him.
§  To continue with his business [you are now the business manager taking care of the business].
§  You are compensated for your “services.”
§  Have it tailor made for your specific circumstances.
·         Short list for further reading & some aspects that need further investigation:
o   Signing Powers in General [for private individuals and not for corporate or government officials].
o   Consent to Disclose Medical Information & DNR (Do Not Resuscitate) And South African Medical Association Living Wills a nd Advance Directive
o   Trusts [Alter Ego Trusts]: Badenhorst V Badenhorst Case:
o   Estates Administration: SA Law Commission Report:
o   SA Law Commission: Assisted Decision-Making: Adults With Impaired Decisionmaking Capacity:
o   Convention on the Rights of Persons with Disabilities and Optional Protocol:
o   Domestic Partnerships: Same Sex Relationships; Cohabitation Relationships SA Law Commission Report:
PRESENTED BY
NEELS COERTSE
011 783 2248
084 456 1030

They very graciously gave me a certificate of Presentation:





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