KUALA LUMPUR: The Mental Capacity Act could have a significant positive impact on the real estate industry by establishing a clear legal framework for managing the affairs of individuals who lose mental capacity.
See Kok Loong, president of the Malaysian Institute of Estate Planners (MIEP), explained that the Act would enable the creation of instruments like lasting powers of attorney (LPA), allowing individuals to designate trusted persons or licenced trust companies to manage their property and financial affairs if they lose mental capacity.
This means that, even if an individual loses mental capacity, their appointed representatives would have the legal authority to handle real estate transactions, including buying, selling, leasing, or managing properties on their behalf.
See emphasised that this is a critical development in closing the current legal gap, ensuring that individuals' wishes are respected even when they can no longer express them.
"One of the key benefits of this Act is that it empowers individuals to take control of their future. By clearly documenting their preferences and appointing trusted persons or licensed trust companies to act on their behalf, individuals can have peace of mind knowing that their affairs will be handled according to their wishes.
"This proactive approach not only ensures that personal and financial matters are managed properly but also reduces the burden on family members who might otherwise be left to make difficult decisions without clear guidance," he said.
See noted that the Act would offer much-needed relief to families who often experience significant stress and conflict when a loved one loses mental capacity without prior arrangements.
By facilitating advance planning, the Act provides individuals and their families with greater confidence and clarity for the future.
"As professionals, we are well-positioned to guide individuals through the process of creating LPAs, drafting advance directives, and ensuring that all legal instruments are properly established and comply with the new regulations."