Singapore legislation

Section 16

of Mental Capacity Act 2008

Section 16

Protection of donees and others if lasting power of attorney not validly created, revoked or suspended, etc.

Amended by10/201610/201610/201610/201610/201610/201610/201610/2016

(1)

This section applies where —

(a)

an instrument purporting to create a lasting power of attorney has been registered under the First Schedule, but a lasting power of attorney was not validly created, whether or not the registration is cancelled at the time of the act or transaction in question; or

(b)

a lasting power of attorney, or a power under a lasting power of attorney, is revoked or suspended.

Amended by10/2016

(2)

A donee who does an act that would have been within the scope of the lasting power of attorney without knowing of the non‑existence, revocation or suspension of the lasting power of attorney or the power under the lasting power of attorney does not incur any liability to P or any other person, despite the non‑existence, revocation or suspension.

Amended by10/2016

(3)

If a lasting power of attorney or a power under a lasting power of attorney is non‑existent, revoked or suspended, a person (called in this section a third party) who deals or otherwise transacts in good faith with the donee, without knowing of the non‑existence, revocation or suspension, is entitled to rely on the lasting power of attorney or the power under the lasting power of attorney in relation to that dealing or transaction in the same manner and to the same extent as if the lasting power of attorney or the power under the lasting power of attorney exists or had not been revoked or suspended.

Amended by10/2016

(4)

It is conclusively presumed in favour of a purchaser from a third party who dealt or otherwise transacted with a donee that the dealing or transaction was valid if —

(a)

the dealing or transaction was completed within 12 months after the date on which the instrument intending to create a lasting power of attorney was registered; or

(b)

the third party makes a statutory declaration, before, on or within 3 months after, the completion of the purchase by the purchaser, that the third party had no reason at the time of the dealing or transaction with the donee to doubt the donee’s authority to deal or transact.

Amended by10/2016

(5)

In subsection (4), “purchaser” means a person claiming through the third party and who acquires the property in good faith and for valuable consideration.

Amended by10/2016

(6)

For the purposes of this section, knowledge that a lasting power of attorney or a power under a lasting power of attorney does not exist or has been revoked or suspended includes knowledge of the happening of any event —

(a)

which prevents the lasting power of attorney from being created; or

(b)

which has the effect of revoking or suspending the lasting power of attorney or the power under the lasting power of attorney.

Amended by10/2016

(7)

In this section, where 2 or more donees are appointed under a lasting power of attorney, a reference to the donee is a reference to all or any of the donees.

Amended by10/2016

(8)

This section applies only to acts and transactions made on or after 30 June 2016, whether the lasting power of attorney or the power under the lasting power of attorney is created or purported to be created, or revoked or suspended, before, on or after that date.

Amended by10/2016
Section 16 — Mental Capacity Act 2008 | laws.sg