Chapter 5 - Powers of Attorney

Under Section 6 of the POA Act 1949, a POA may survive the donor's death if:

• It is signed before a witness

• The donee is a lawyer

• It is irrevocable and for valuable consideration

• The donor has no next of kin

A POA cannot be used in which of the following scenarios?

• To sign a deed of transfer

• To make medical decisions

• To delegate judicial authority

• To manage a bank account

Which legal principle limits the donee from extending authority to another?

• Estoppel

• Privity of contract

• Non-delegation principle

• Joint tenancy

A doctor giving his clerk authority to issue reports would violate:

• Medical Act

• POA Act

• Personal discretion exception

• Trustee Act

Section 30(6) of the Trustee Act 1949 allows POA acts to remain valid:

• If notarized

• If the third party has no knowledge of death

• If witnessed by two adults

• If registered overseas

Which best describes fiduciary duty of the donee?

• Promote the interest of the estate

• Maintain secrecy of financial dealings

• Act honestly and in the donor's best interest

• Follow instructions of beneficiaries

Which case law principle applies to interpretation of a POA's scope?

• External evidence is admissible

• Donee's belief is considered valid

• Only the POA document contents are relevant

• Future actions of donee are reviewed

What does not automatically extinguish a POA?

• Donor becomes bankrupt

• Donor becomes a minor

• POA is irrevocable with consideration

• Donor marries

Under POA agency principles, the donee:

• Has beneficial interest in donor's property

• Is a fiduciary and must avoid conflicts

• Must distribute donor's property upon death

• Can act independently of the POA document

Which procedural rule is mandatory for executing a POA?

• It must be in a sealed envelope

• It must be signed by the donor in public

• It must be witnessed by a qualified person (e.g., Commissioner for Oaths)

• It must be reviewed by a judge