A Power of Attorney (POA) is a legal tool that grants an appointed individual (the donee) the authority to act on behalf of another person (the donor). In Singapore, a POA can be used for financial matters, property transactions, and even medical decisions in cases of mental incapacity. However, while a POA grants significant power, it also comes with strict legal responsibilities and limitations. Understanding these is crucial to ensure responsible decision-making and prevent abuse.
Responsibilities of a Power of Attorney
A donee appointed under a General Power of Attorney (GPA) or Lasting Power of Attorney (LPA) has specific duties, depending on the type of POA granted.
1. Acting in the Donor’s Best Interests
Under the Mental Capacity Act (Cap. 177A), a donee must always prioritize the donor’s welfare and interests when making decisions. This includes:
- Managing finances prudently.
- Avoiding conflicts of interest.
- Respecting the donor’s values and preferences.
2. Managing Financial Affairs
For a GPA or LPA (Property & Affairs), the donee may handle:
- Bank transactions (withdrawals, transfers, payments).
- Buying or selling property (if authorized).
- Managing investments or insurance.
However, misusing funds for personal gain is illegal, and the Office of the Public Guardian (OPG) can investigate suspected abuse.
3. Making Healthcare Decisions
For an LPA (Personal Welfare), a donee may decide on:
- Medical treatments.
- Daily care arrangements.
- Living arrangements (e.g., nursing home placement).
However, the donee cannot make decisions regarding life-sustaining treatment unless explicitly stated in the LPA.
4. Keeping Proper Records
A donee must maintain:
- Detailed records of all financial transactions.
- Documentation of decisions made on behalf of the donor.
- Receipts and invoices for any expenditures.
The OPG or family members can request to review these records to ensure accountability.
Limitations of a Power of Attorney
While a POA grants authority, it does not allow the donee to act beyond certain legal boundaries.
1. No Decision-Making After the Donor’s Death
A POA automatically ends upon the donor’s death. At this point, only the executor named in the donor’s Will can handle financial and legal matters.
2. No Control Over the Donor’s Will
A donee cannot alter or create a Will for the donor. Estate planning remains a separate legal process that must be done by the donor while mentally capable.
3. Restrictions on Medical Decisions
For an LPA (Personal Welfare), a donee cannot:
- Override the donor’s prior medical decisions.
- Make decisions about sterilization or abortion.
- Approve euthanasia (which is illegal in Singapore).
4. No Power Over Certain Financial Transactions
A donee cannot:
- Make gifts or donations on the donor’s behalf unless explicitly allowed in the POA.
- Transfer property to themselves unless permitted.
- Take loans in the donor’s name for personal use.
If a donee is suspected of financial misconduct, the OPG has the authority to revoke the POA and take legal action.
5. Revocation of the POA
A POA can be revoked if:
- The donor regains full capacity and submits a revocation notice.
- The donee resigns or is found guilty of misconduct.
- The court intervenes due to legal violations.
For an LPA, a formal revocation must be filed with the OPG, along with supporting evidence.
Consequences of Misusing a Power of Attorney
If a donee misuses their authority, they may face:
- Civil liability – Being sued by the donor or their family.
- Criminal charges – Fraud, misappropriation, or abuse of power.
- Removal by the OPG – The donee can be stripped of authority.
The OPG regularly monitors LPAs and can investigate complaints from family members or financial institutions.
A Power of Attorney is a valuable legal tool but comes with strict responsibilities and limitations. While donees can manage financial and healthcare matters, they must act ethically and in the donor’s best interests at all times. Understanding these boundaries ensures smooth legal decision-making and prevents potential abuse.