Mental Capacity and Financial Planning for Expats: Lasting Powers of Attorney Abroad

No-one plans to lose mental capacity. But the risk of dementia, stroke, or sudden incapacitating illness increases with age, and for expatriates living outside their home country, the consequences of failing to plan for this are substantially more severe than for domestic residents. An expat who loses capacity without a properly executed and internationally recognised power of attorney may find that their finances freeze, their family cannot access funds to pay bills, and courts in multiple countries must be involved before anyone can act on their behalf — a process that can take years and cost tens of thousands of pounds.

What Is Mental Capacity Planning?

Mental capacity planning — sometimes called incapacity planning — is the process of putting in place legal documents that allow someone you trust to manage your financial and personal affairs if you become unable to do so yourself.

The main tool in England and Wales is the Lasting Power of Attorney (LPA). There are two types:

Property and Financial Affairs LPA: authorises your attorney(s) to manage bank accounts, investments, property, tax affairs, pension drawdown, and other financial matters.

Health and Welfare LPA: authorises your attorney(s) to make decisions about your medical care, where you live, and day-to-day personal welfare. This LPA can only be used when you have lost capacity — unlike the Property and Financial Affairs LPA, which can be used while you have capacity if you choose to authorise it.

Without a valid LPA (or equivalent document), the only way someone can manage your affairs when you lose capacity is through a court order — an expensive, slow process in the UK and potentially more complex still in other countries.

Why Expats Face Greater Risks

Living abroad adds layers of complexity to incapacity planning:

International recognition. An English LPA is recognised in England and Wales and may be recognised in some Commonwealth countries. It is not automatically recognised in most European countries, the UAE, Thailand, or other civil law jurisdictions. Local authorities and financial institutions in those countries may refuse to accept it.

Multi-jurisdictional assets. If your assets are spread across multiple countries — a UK pension, a UAE bank account, a Spanish property, an offshore investment account — a single document from one jurisdiction will not be sufficient to manage all of them.

Healthcare in a foreign country. If you become incapacitated in a country where your Health and Welfare LPA is not recognised, your family may have no legal authority to communicate with healthcare providers or make treatment decisions on your behalf.

Distance from family. Your attorney may be in the UK while you are hospitalised in Thailand. The practical challenges of acting under an LPA from another country are significant.

UK LPA: The Basics

English LPAs are created under the Mental Capacity Act 2005 and registered with the Office of the Public Guardian (OPG). The process involves:

1. Completing the LPA forms (currently online via the OPG portal or on paper)
2. Signature by the donor (you), the certificate provider (confirming you have capacity and are not under pressure), and the attorney(s)
3. Registration with the OPG — a process that currently takes approximately 10–20 weeks
4. Paying the registration fee (currently £92 per LPA, increased from £82 in November 2025)

An LPA cannot be used until it is registered. Given the registration time, it is essential to set up LPAs well before they might be needed — not in a crisis.

Choosing attorneys. You can appoint one or more attorneys. Multiple attorneys can act jointly (all must agree) or jointly and severally (any one can act alone). The latter is more practical for expats. Attorneys must be adults with mental capacity; they cannot charge for acting unless they are professional attorneys (in which case the LPA must specifically authorise charging).

Replacement attorneys. You can name replacement attorneys who step in if the primary attorney can no longer act. Given the geographic distance involved for many expats, backup planning is essential.

Overseas Recognition of UK LPAs

The recognition of a UK LPA abroad depends on the country and the specific institution involved.

EU countries. Most EU countries have ratified the Hague Convention on the International Protection of Adults (2000), which provides a framework for cross-border recognition of incapacity documents. However, recognition is not automatic — you may need to have the LPA apostilled (authenticated for international use) and translated.

UAE. The UAE does not operate a LPA system equivalent to the UK one. For expats in the UAE, a locally notarised power of attorney — executed in the UAE under UAE law — is essential for UAE-based assets and affairs. UAE banks and government entities typically require a UAE document.

Spain. Spain has its own notarial power of attorney system. A UK LPA may be accepted by some institutions with an apostille and certified translation, but Spanish-law equivalent documents are advisable for Spanish property and bank accounts.

Thailand. Thailand's recognition of foreign powers of attorney is limited. Thai financial institutions and land offices typically require Thai-law documents. A Thai-registered power of attorney, prepared by a Thai lawyer, is essential for Thai property and financial assets.

Channel Islands, Isle of Man. These jurisdictions have their own LPA/Enduring Power of Attorney frameworks, which may or may not recognise English documents. If you hold assets in these jurisdictions, take local legal advice.

Creating Equivalent Documents in Key Jurisdictions

For each country where you hold significant assets, consider whether a local-law equivalent document is needed. Common local equivalents include:

• France: procuration notariée (notarial power of attorney)
• Spain: poder notarial
• UAE: notarised power of attorney from a UAE notary public
• Thailand: Thai-law power of attorney or specially endorsed document
• Cyprus: Cyprus enduring power of attorney under the relevant Cyprus legislation

In some jurisdictions, a general power of attorney (not specifically tied to incapacity) is the appropriate document. Take local legal advice in each jurisdiction where you hold significant assets.

Apostilles and Translations

Documents that need to work across borders typically require:

1. Apostille: a certificate issued under the Hague Convention that authenticates the document for use in foreign countries. The UK Legalisation Office issues apostilles for UK documents. Most countries that have signed the Hague Convention (Apostille Convention) will accept apostilled documents.

2. Certified translation: the document must be translated by a qualified certified translator into the language of the country where it is to be used.

These steps add cost and time. Budget for them and ensure they are in place before they are needed.

The Court of Protection: When Planning Has Not Been Done

If you lose capacity without having put a valid LPA in place, applications must be made to the Court of Protection (in England and Wales) to appoint a Deputy to manage your affairs. This process typically:

• Takes 6–12 months
• Costs several thousand pounds in legal fees
• Requires ongoing annual reporting and supervision costs
• Is available only for UK-based assets and affairs — foreign assets require parallel applications in the relevant foreign courts

For expats with assets in multiple countries who have not made advance planning, the cost and complexity of dealing with incapacity without LPAs can be enormous.

Healthcare Decisions Abroad

Health and Welfare LPAs are important even for people who have covered their financial affairs. Key considerations:

• Ensure your attorney knows your medical preferences, particularly regarding life-sustaining treatment
• Consider creating an "advance decision" (living will) as well — a document setting out your specific instructions on treatment if you lose capacity
• Carry a summary document with you when travelling (or living abroad) that identifies your attorney and sets out your key medical information

Some countries have their own "advance directive" frameworks. Taking legal advice locally on healthcare planning is worthwhile if you expect to receive healthcare in that country.

Practical Checklist

1. Create both UK LPAs (Property/Financial and Health/Welfare) now — do not wait
2. Allow 3–6 months for registration with the OPG
3. Identify all countries where you hold significant assets
4. Take local legal advice in each jurisdiction to determine whether a local-law document is needed
5. Apostille UK documents and arrange certified translations for use abroad
6. Ensure your chosen attorneys know where the LPAs are stored and how to use them
7. Review arrangements every 3–5 years, or when circumstances change

How Global Investments Can Help

At Global Investments, we work with internationally mobile clients around the world and are acutely aware of the complexity that cross-border asset ownership creates when planning for incapacity. We can help you review your existing arrangements and identify gaps, and introduce you to specialist solicitors and local lawyers in the relevant jurisdictions who can prepare the appropriate documents. Do not leave this until it is too late.

This article is for general information only. The law on powers of attorney and incapacity planning varies significantly by jurisdiction and changes over time. Always seek qualified legal advice in each relevant country. This article is not legal advice.