A power of attorney is one of the most familiar legal tools for handling day-to-day admin when you cannot be present. In South Africa it allows a trusted person to act in your name for clearly defined tasks, from signing a sale agreement to managing a bank transaction while you are overseas. Many families assume it will also cover long-term incapacity. It does not. South Africa does not yet recognise an enduring power of attorney that survives loss of mental capacity. That gap means you need a different plan for ageing, illness and serious injury. This guide explains how a power of attorney works, where it stops, and the practical alternatives that protect you and your estate.

What a power of attorney is

A power of attorney is a written authority in which a principal empowers an agent (also called the attorney-in-fact) to perform acts on the principal’s behalf. It can be:

General: a broad mandate to do any lawful act the principal could do.
Special: limited to specific acts, such as signing transfer documents for a property, managing a single investment account, or collecting rental.

Banks, deeds offices and other institutions usually require the original document, dated and signed by the principal, and may ask for certified copies of the principal’s ID and specimen signatures. You can revoke a power of attorney at any time while you have capacity, and it also ends if the purpose is fulfilled.

The key limits of a power of attorney in South Africa

A power of attorney rests on the principal’s legal capacity. If the principal loses capacity because of dementia, traumatic brain injury, stroke or severe mental illness, the law treats the mandate as ending automatically. The agent can no longer act. The document also terminates on the principal’s death or insolvency. In short, a power of attorney is a convenience tool for competent adults, not a substitute for an incapacity plan.

South African law does not currently provide a statutory enduring or lasting power of attorney that stays valid after capacity is lost. A clause attempting to make a mandate “endure” is not reliable. Families who rely only on a power of attorney often discover the problem when a bank refuses to recognise the mandate once incapacity is evident.

The practical problem families face

When a person can no longer manage money or sign documents, debit orders still run, properties still need maintenance, and tax filings still fall due. Without a valid mandate, spouses and adult children can be blocked from paying bills from the person’s own account or selling assets to fund care. To lawfully step in, you must use one of the recognised incapacity alternatives.

Alternatives that work when capacity is lost

1) Administrator of property and affairs

For people who, because of mental illness or severe or profound intellectual disability, are incapable of managing their property and financial affairs, the Master of the High Court can appoint an administrator. This is an administrative process rather than a High Court application and can be quicker and cheaper than curatorship. The administrator manages defined assets under supervision by the Master, files periodic accounts and seeks directions where needed.

When it helps

The diagnosis and functional assessment fit the statutory criteria.
The estate is modest to moderate in complexity.
The family seeks a practical, supervised solution without going to the High Court.

Benefits

Faster, lower-cost process than curatorship.
Ongoing oversight and accounting requirements protect the person’s interests.
Scope can be tailored to the person’s needs.

2) Curator bonis

Where a broader or more complex intervention is required, the High Court can appoint a curator bonis to manage a person’s estate. This route is appropriate for higher-value or complicated estates, contested situations, or where the person’s needs extend beyond the statutory administrator regime. The application relies on medical evidence of incapacity and sets out why curatorship is in the person’s best interests.

When it helps

The estate includes businesses, trusts, foreign assets or litigation.
There are disputes among relatives or risks of exploitation.
A court order is desirable for clarity with counterparties.

Benefits

Clear High Court authority that counterparties respect.
Wide powers tailored by the court order.
Court supervision and reporting obligations provide safeguards.

3) Proactive structures that reduce future friction

Even before incapacity, you can design your affairs so that help can be given lawfully and quickly.

Inter vivos family trust: Placing growth assets in a trust with an independent trustee allows day-to-day management to continue if you lose capacity. Trustees act by resolution and can pay for care, maintain properties and administer investments within the deed.
Joint decision frameworks for businesses: Shareholders’ agreements and company mandates can ensure continuity if a director or key shareholder loses capacity.
Medical advance directives: A living will or health-care directive guides clinicians and family on treatment choices. While not a financial mandate, it prevents conflict and supports dignity.
Bank and investment mandates: Some institutions offer internal mandates or co-signing arrangements that ease administration while you still have capacity. These are not substitutes for the legal alternatives above once capacity is lost, but they can help with travel, illness or temporary incapacity.

Choosing between the alternatives

If the condition fits the statutory criteria and the estate is straightforward, an administrator appointed by the Master is often the most efficient path.
If the estate is complex, there is conflict, or you need robust authority for significant transactions, a curator bonis via the High Court is usually better.
For long-term resilience, pair either route with sound estate planning: a properly drafted Will, life cover for liquidity, and where appropriate a family trust to keep assets functioning without delays.

Crest Trust works alongside medical practitioners, attorneys and families to select the right route, gather evidence, prepare applications and put governance in place for transparent administration.

Why these alternatives are better than “stretching” a power of attorney

Trying to keep using a power of attorney after capacity is lost exposes everyone to risk. Counterparties can reject transactions, and agents can face personal liability for acting without authority. Administrator and curatorship appointments, by contrast, give clear, current legal authority and a framework for accountability. They also protect the vulnerable person from financial abuse by imposing reporting duties and, when necessary, requiring approvals for major steps.

Building a practical plan before you need it

A good plan is simple, written and shared.

Document your wishes: Prepare a living will and a short letter of wishes for financial priorities if incapacity strikes.
Mandates for today: Create a power of attorney for travel or short-term assistance while you are well. Use special mandates for high-risk tasks.
Triggers and team: Agree who will obtain medical assessments and who will drive the application for an administrator or curator if capacity is lost.
Asset map: Maintain an updated list of accounts, policies, titles and passwords in a secure vault accessible to your nominated people.
Trust and Will alignment: Keep your Will current and, if a trust is part of the plan, ensure the deed empowers trustees to fund care, with an independent trustee already in place.

This combination keeps life manageable now and creates a lawful runway for the future.

Common mistakes to avoid

Relying solely on a power of attorney for dementia planning. It will lapse when you need it most.
No independent oversight in family-only arrangements. Independent trustees or professionals reduce conflict and improve credibility with banks and regulators.
Vague role allocation. If nobody knows who must act, delays follow. Name the people and write down the steps.
Letting documents go stale. Review your plan every two to three years or after major life events.

How Crest Trust helps

We design practical incapacity plans for South African families. Our team prepares fit-for-purpose power of attorney mandates for everyday use, coordinates administrator or curatorship applications when needed, and builds resilient structures around trusts, business mandates and liquidity. As independent trustees we keep governance tight, records clean and distributions transparent, so your care and estate remain well managed whatever the future holds.

If you want a plan that works on ordinary days and on the hardest days, combine a well-drafted power of attorney for the here-and-now with a clear route to lawful decision-making if capacity is lost. Crest Trust can help you put the documents, people and structures in place so your affairs run smoothly and your wishes are respected.

Conclusion

A power of attorney is excellent for everyday convenience, but it is not an incapacity plan. In South Africa the mandate ends the moment legal capacity is lost, which is exactly when families need authority most. A practical strategy pairs a clear, well-scoped power of attorney for current use with a ready pathway to lawful decision-making through an administrator or a curator bonis if circumstances change. Adding solid structures such as a living trust, updated Wills, and a simple asset map turns uncertainty into a workable plan.

If you want documents that banks and regulators will accept, people who know what to do, and a roadmap that protects your care and your estate, Crest Trust can help. We prepare fit-for-purpose mandates, coordinate applications when capacity is lost, and build governance that keeps your affairs running smoothly. Reach out to us to turn intent into a clear, compliant plan that will stand up when it matters.

FAQs

What is power of attorney in South Africa?

It is a written authority in which a competent adult (the principal) authorises another person (the agent) to act on their behalf for specified acts or a general mandate. It is useful for routine administration but it ends if the principal loses capacity, dies or becomes insolvent.

What is the use of power of attorney?

It lets a trusted person sign documents, transact with banks, deal with property transfers, or manage a project while you are unavailable or prefer assistance. Think convenience and continuity while you still have full legal capacity.

What is the easiest way to get a power of attorney?

Draft a clear document that identifies the parties, scope and limits, sign and date it, and keep originals handy. For property or high-value transactions, use a special power tailored to the task. Your bank, conveyancer or adviser can confirm any extra formalities they require.

Who is the best person to give power of attorney?

Choose someone trustworthy, organised and available, who understands your affairs and will follow instructions. Where money is involved, consider adding checks such as dual signatures for large payments. For longer-term planning, pair your mandate with an incapacity plan that uses an administrator or curator bonis if you lose capacity.

Power of attorney in South Africa and alternatives