Powers of Attorney for Expats: Protecting Yourself Internationally

Most internationally mobile people spend considerable time planning for what happens to their estate after they die — choosing executors, drafting wills, thinking about inheritance tax. Far fewer spend equivalent time on what happens if they lose mental capacity while they are alive: through a stroke, a serious accident, dementia, or another incapacitating illness.

If you have assets in multiple countries, bank accounts in different jurisdictions, property abroad, and pension arrangements in the UK, and you suddenly lose the ability to manage your own affairs — who can step in? The answer, without a properly structured power of attorney, is usually nobody — at least not without going to court in multiple jurisdictions, which is slow, expensive, and uncertain.

What Is a Power of Attorney?

A power of attorney (POA) is a legal document that authorises another person (or persons) — called your attorney — to make decisions on your behalf. The scope can be narrow (signing a specific document while you are travelling) or broad (managing all your financial and health affairs indefinitely).

For financial planning purposes, the most important type for UK nationals and those with UK assets is the Lasting Power of Attorney (LPA) — specifically the "property and financial affairs" LPA.

Lasting Power of Attorney (UK): The Essentials

The LPA replaced the older Enduring Power of Attorney (EPA) in England and Wales in 2007. Key characteristics:

Must be registered before use. Unlike some overseas equivalents, a UK LPA must be registered with the Office of the Public Guardian (OPG) before it can be used. Registration takes several weeks. If you wait until incapacity occurs and then try to register an LPA, it is too late — you cannot register it after losing capacity.

Two types:

1. Property and Financial Affairs LPA — covers bank accounts, investments, property, tax returns, and all financial decisions. This is the one with the most direct relevance to wealth management.
2. Health and Welfare LPA — covers medical decisions, care arrangements, and end-of-life choices. A separate document from the financial LPA, though often done at the same time.

Registered with the OPG in England and Wales. Scotland has its own system (Continuing Power of Attorney under Scottish law). Northern Ireland is different again. If you have property in Scotland, a separate Scottish POA may be needed.

Who can be your attorney? Anyone over 18 whom you trust. Common choices: a spouse or partner, a sibling, an adult child, a close friend, a professional (solicitor or accountant). You can appoint multiple attorneys to act jointly (all must agree on every decision) or jointly and severally (each can act independently — more practical). Consider carefully: this person will have significant power over your finances if you become incapacitated.

Replacement attorneys. You can (and should) name one or more replacement attorneys in case your primary attorney dies, loses capacity, or cannot act.

What Happens Without an LPA

If you lose capacity without a registered LPA, nobody can automatically access your bank accounts, sell your property, or manage your investments — not even your spouse. In England and Wales, the Court of Protection would need to appoint a deputy, which involves:

• An application process that typically takes several months
• Court fees and ongoing annual fees
• Annual reporting requirements to the OPG
• Less flexibility than an attorney under an LPA would have
• Significant family stress at an already difficult time

The process is similar in other jurisdictions — court-appointed guardianship or administration, with all the costs and delays that entails.

The International Dimension: Multiple Jurisdictions, Multiple POAs

A UK LPA is valid in England and Wales and may be accepted in some other jurisdictions — but is not automatically recognised internationally. Each country has its own rules about whether foreign powers of attorney are valid and what formalities are required.

Hague Apostille Convention: The UK and many other countries are signatories to the Hague Convention, which allows public documents (including registered POAs) to be authenticated with an "apostille" stamp and then accepted in other signatory countries. This helps but does not guarantee acceptance — local counsel in the target country must advise on specific requirements.

Practical approach for internationally mobile people:

1. UK LPA for UK assets. If you have UK bank accounts, UK property, UK pension, and UK investments, a registered UK LPA is essential. This covers the bulk of what most British expats hold in the UK.

2. Local POA for property in each jurisdiction. If you own property in Spain, France, Cyprus, or another country, consider having a local-law power of attorney drafted by a notary or solicitor in that country. Spanish "notarial" POAs, French "procurations," and Cypriot POAs may be required for local property transactions if you cannot attend in person — and become critical if you lose capacity.

3. For bank accounts abroad: Banks in major international centres (UAE, Singapore, Hong Kong) typically have their own procedures for third-party account management. Check with your bank what their requirements are in the event of incapacity — some will accept a UK LPA with an apostille; others require locally notarised documents.

4. Offshore investment bonds and platforms. Notify your platform of your LPA once it is registered. Many platforms will record the attorney's details and process the LPA for future reference. Doing this proactively — rather than during a crisis — avoids delays.

The UAE: A Specific Consideration

The UAE does not have an equivalent of the UK LPA system. If you lose capacity in the UAE, your family may need to pursue proceedings through the UAE courts to establish authority over your assets. This can be complicated and slow. For UAE-based expats:

• Ensure a UK LPA covers any UK assets.
• For UAE assets, consult a UAE-qualified lawyer about the options available, including whether a UAE notarised power of attorney (prepared while you have capacity) can be structured to survive incapacity in local law.
• Review the position with your UAE bank — understand what they require before a problem arises.

For Muslims in the UAE, Sharia succession and incapacity rules may apply through the courts if no specific arrangements are in place. Non-Muslims may be able to opt for their home country law in some circumstances — again, local legal advice is essential.

Keeping the LPA Current

An LPA does not expire, but it should be reviewed periodically:

• If you change your primary attorney (relationship breakdown, death of the attorney)
• If your financial circumstances change significantly
• If you acquire assets in new jurisdictions

You cannot amend an LPA once registered — you must revoke it and make a new one. Revocation while you have capacity is straightforward; revocation on behalf of someone who lacks capacity requires a court order.

The "Letter of Wishes" Alongside the LPA

Alongside the formal LPA, many advisers recommend a "letter of wishes" or guidance note to your attorney: explaining where your assets are held, what your financial priorities are, how you would like your investments to be managed, and any preferences about major financial decisions. This document is not legally binding but gives your attorney the context to act in a way that reflects your wishes.

For internationally mobile people with complex arrangements — offshore bonds, overseas property, QROPS pensions, multiple bank accounts — this document is invaluable. List the financial institutions, account numbers (or at least the institution names), and the names of your professional advisers (financial adviser, solicitor, accountant).

Practical Steps to Take Now

1. Make a UK LPA (property and financial affairs) if you have any UK assets and have not already done so. Register it promptly — do not wait.
2. Consult a local lawyer in any overseas country where you hold property about a local POA appropriate to that jurisdiction.
3. Notify your financial platform and offshore bond provider of your LPA once registered.
4. Prepare a letter of wishes documenting your assets, accounts, and professional advisers for your attorney.
5. Review every 5 years or whenever circumstances change significantly.

How Global Investments Can Help

Global Investments works with internationally mobile clients to ensure their financial affairs are properly protected — including for the possibility of incapacity. We can help you understand what coverage is needed for your specific asset base, introduce you to specialist legal advisers in the UK and overseas jurisdictions, and ensure your financial platform holdings are properly recorded against your LPA. Speak to one of our advisers to review your current position.

This article is for general information only and does not constitute legal advice. The rules on powers of attorney vary by jurisdiction and change over time. Always consult a qualified solicitor or local legal adviser before making decisions about powers of attorney.