Elderly parents and incapacity: powers of attorney and managing a relative’s affairs

Key points

A power of attorney is valid in Peninsular Malaysia only if signed before and authenticated by an authorised person (e.g. a magistrate, advocate and solicitor or commissioner for oaths) and a true copy is deposited with the High Court registry (Powers of Attorney Act 1949 ss 3, 4).
An ordinary power of attorney ends when the donor dies or is adjudged to be of unsound mind (s 5) — so it is not a reliable way to manage affairs after a parent loses capacity.
When a person cannot manage himself and his affairs because of mental disorder, a relative may apply to the court for an inquiry (Mental Health Act 2001 s 52).
The court may appoint a committee of the person and/or of the estate; the committee cannot sell or charge property, or let land for more than three years, without the court (ss 58, 59, 63).
For a small estate, the court may instead order money to be paid to a named person for maintenance, without appointing a committee (s 71).

What a power of attorney is, and where this law applies

A power of attorney is a document by which one person (the donor) authorises another (the donee or attorney) to act for him — for example to operate bank accounts or deal with property. The Powers of Attorney Act 1949 applies to Peninsular Malaysia only (s 1(2)); Sabah and Sarawak have their own rules, not covered here.

Making it valid: signing and authentication

Signed in Peninsular Malaysia: the instrument must be executed before, and authenticated in the form in the First Schedule by, a Magistrate, a Justice of the Peace, a Land Administrator, a Notary Public, a Commissioner for Oaths, an advocate and solicitor, or a bank officer acting in the course of employment (s 3(1)(a)).
Signed abroad: authentication in a form accepted by the Registrar by, among others, a Notary Public, a Commissioner for Oaths, a judge, a magistrate or a Malaysian consular officer; in Saudi Arabia the Malaysian Pilgrimage Commissioner; in Singapore also an advocate and solicitor or bank officer there (s 3(1)(b)).
A power so executed and authenticated is treated as properly executed for any purpose for which a power of attorney may be used under other laws (s 3(2)).

Depositing it at the High Court registry

A power of attorney has no validity in Peninsular Malaysia until a true copy, compared and marked “true copy” by the Senior Assistant Registrar, is deposited with a Senior Assistant Registrar of the High Court (s 4(1)).
If it is in a language other than Malay or English, a certified translation must be deposited too (s 4(2)); deposit fees are prescribed (s 4(3)).
Exception: an instrument used only for transactions at a land registry or land office, attested as land law requires (s 4(4)).
Anyone may search the register and inspect deposited powers on paying the fee, and obtain office copies (ss 9, 10).

When it ends

A deposited power continues until written notice of revocation by the donor (or renunciation by the donee) is deposited, or the donor or donee dies, or the donee becomes of unsound mind, or the donor is adjudged to be of unsound mind, or a receiving order in bankruptcy is made against the donor (s 5).
Exceptions in favour of a purchaser: a power given for valuable consideration and expressed to be irrevocable is not revoked by the donor’s death, marriage, mental disorder or bankruptcy (s 6); nor is a power expressed to be irrevocable for a fixed time, during that time (s 7).
Protection for those who act in good faith: a person who pays or acts under the power is not liable just because the donor had died, become mentally disordered, bankrupt or revoked the power, if he did not know of it at the time (s 8(1)); people interested in the money keep their remedy against the person paid (s 8(2)).

When a parent can no longer manage: the court inquiry

The court may, on application, order an inquiry into whether a person alleged to be mentally disordered is incapable of managing himself and his affairs because of that disorder; it may also direct inquiries into his property, his relatives and how long he has been unwell (Mental Health Act 2001 s 52(1)–(2)).
The application may be made by a relative, or by a public officer nominated by the Minister (s 52(3)).
The court may require the person to be produced for examination by the court or by a psychiatrist, and authorise named persons to have access to him for that purpose (s 54(1)). The psychiatrist’s report considers his condition, the complexity of his estate and how the condition affects his handling of it, and is admissible at the inquiry (s 54(2)–(3)).

Committees of the person and of the estate

If the court finds him incapable, it may appoint a committee (or committees) of the person and of the estate, and order remuneration from the estate and security from the committee (s 58(1)).
If he is incapable but not dangerous to himself or others, the court may appoint a committee of the estate only (s 58(2)).
The court decides the committee’s powers of management, having regard to the kind of property (s 59(1)); those powers do not extend to selling or charging any part of the estate, or letting immovable property for more than three years (s 59(2)).
Where just or for his benefit, the court itself may order property to be sold, charged or otherwise disposed of to pay his debts, discharge encumbrances, pay for his and his family’s future maintenance, and pay the costs of the proceedings (s 63).
The court may make orders on applications connected with the inquiry, including costs, but not costs against a public officer (s 62).

A simpler route for small estates

If, considering the person’s situation and family, it is expedient that his property be used for his or their maintenance in a direct and inexpensive way, the court may — instead of appointing a committee of the estate — order the money (or the proceeds of other property) to be paid to a person it appoints, to be applied for the maintenance of the person and his family; payments so made are a good discharge (s 71).

Laws cited on this page

Act 424	Powers of Attorney Act 1949 Akta Surat Kuasa Wakil 1949	PDF · PDF (BM) · Official ↗
Act 615	Mental Health Act 2001 Akta Kesihatan Mental 2001 Our guide →	PDF · PDF (BM) · Official ↗

Each law links to our mirror page: a copy of the official text captured on a known date, its version history, and the official source. Law library →

Worked examples

Example 1: Planning ahead

Facts. Encik Rahman, 72, in Melaka, wants his daughter to handle his bank matters while he travels abroad for treatment.

The law. He signs the power of attorney before an advocate and solicitor or commissioner for oaths (Powers of Attorney Act s 3(1)(a)) and a true copy is deposited with the Senior Assistant Registrar (s 4(1)).

Outcome. The daughter can act under it. If he is later adjudged to be of unsound mind, the power ends (s 5), and the family would need to apply under the Mental Health Act 2001.

Example 2: Father with advanced dementia

Facts. Mr Lim has advanced dementia and cannot manage his money; his fixed deposits are needed for nursing-home fees. He is not dangerous to himself or others.

The law. His son, a relative, applies for an inquiry (Mental Health Act s 52(3)); the court may obtain a psychiatrist’s report (s 54) and appoint a committee of the estate only (s 58(2)).

Outcome. The committee manages the estate within the powers the court gives (s 59(1)); to sell property for the fees the court must order it (ss 59(2), 63). For a modest estate, the court may simply order the money paid to the son for maintenance (s 71).

Examples are simplified illustrations with invented names; real cases turn on their own facts.

Questions & answers

Can I sign a power of attorney at home and use it straight away?

No. It must be signed before and authenticated by an authorised person such as a magistrate, commissioner for oaths or advocate and solicitor (Powers of Attorney Act 1949 s 3(1)(a)), and a true copy deposited at the High Court registry before it has any validity (s 4(1)).

My mother gave me a power of attorney. Does it still work now that she has dementia?

It continues until, among other events, she is adjudged to be of unsound mind (s 5). Once that happens it ends, unless it is an irrevocable power given for valuable consideration or for a fixed time, and then only in favour of a purchaser (ss 6, 7). A court inquiry under the Mental Health Act 2001 is the route for long-term management (s 52).

Who can apply to court to manage a parent’s affairs?

A relative of the person, or a public officer nominated by the Minister (Mental Health Act 2001 s 52(3)).

Can the committee sell my father’s house to pay for his care?

Not on its own authority: a committee’s powers do not extend to selling or charging the estate (s 59(2)). The court can order a sale to pay for his debts and his and his family’s maintenance (s 63).

Is a full committee always needed?

No. Where it is expedient, the court can order the property or its proceeds paid to an appointed person for maintenance, without a committee of the estate (s 71).

A bank paid out under a power of attorney after the donor died. Is it liable?

Not if it acted in good faith without knowing of the death (s 8(1)), though persons interested in the money keep their remedy against whoever received it (s 8(2)).

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This page explains the general position in Malaysia (last reviewed October 2026). It is not legal advice — check the current law and get advice on your own facts.

Sources

Mental Health Act 2001 Persons with Disabilities Act 2008 Statutory Declarations Act 1960 Wills and estates When someone dies: the first steps, in order Getting legal help