Most internationally mobile professionals think about their financial plans in terms of growth, tax efficiency, and retirement. Very few think about what happens if they lose the ability to manage their own affairs. Yet the incapacity scenario — a serious road accident in Bangkok, a stroke in Dubai, a dementia diagnosis in your 70s while living in Spain — is a real risk with potentially devastating financial consequences if it is not planned for.
The legal framework in England and Wales for managing the affairs of an incapacitated person requires either a registered Lasting Power of Attorney (LPA) in place, or an application to the Court of Protection by someone who wants to act on your behalf. Understanding the difference between these two paths — and why the first is vastly preferable — is essential for anyone with UK financial interests living abroad.
The Problem: No One Can Act Without Authority
Under English law, if you lose mental capacity, no one — not your spouse, not your children, not your business partner — can automatically take control of your financial affairs. Legal authority must be established through a specific legal process.
This has consequences that catch families by surprise:
Bank accounts freeze: UK banks will not allow anyone to operate your account without legal authority. Direct debits — mortgage, insurance premiums, utility bills — will fail if the account holder cannot authorise transactions. A mortgage will go into arrears not because there is no money, but because no one is authorised to make the payments.
Property cannot be sold or remortgaged: If you own property in the UK and need to sell it to fund care costs, a property transfer requires the owner's signature or the signature of an authorised representative. Without an LPA or Court of Protection order, the property is frozen.
Investments cannot be moved: An investment manager or pension provider will not accept instructions from an unauthorised person, even a family member.
Businesses are disrupted: If you are a director or a signatory on a business bank account, your incapacity can prevent the business from operating normally.
These are not hypothetical concerns. They are the routine experience of families navigating the UK legal system after a loved one's unexpected incapacity — and they are significantly more complex when the incapacitated person is living in another country.
The Court of Protection: The Process Without an LPA
The Court of Protection is a specialist court in England and Wales that makes decisions and appoints deputies for people who lack mental capacity. It can authorise someone — a family member, a solicitor, a professional deputy — to manage the incapacitated person's affairs.
The process: To be appointed as a deputy, an applicant must:
- File an application with the Court of Protection (COP1 form and supporting documents)
- Provide a capacity assessment from a medical professional
- Notify the incapacitated person and various relatives of the application
- Pay application fees (currently £371 for a property and financial affairs application)
- Wait — typically 4–8 months for an uncontested application, longer if there are complications
The ongoing obligations: Once appointed, a deputy must:
- Report annually to the Office of the Public Guardian (OPG)
- Keep detailed accounts of all transactions
- Purchase a security bond (a form of insurance against mismanagement)
- Apply back to the court for certain significant transactions (selling a property, making large gifts, altering investment strategies)
The cost: Court fees, solicitor fees for the application, deputy's ongoing fees (solicitor deputies typically charge hourly rates), annual OPG supervision fees, and security bond premiums combine to cost several thousand pounds per year — every year, for the duration of the incapacity.
For families living abroad: Navigating the Court of Protection from overseas — dealing with UK solicitors, attending medical assessments, managing document authentication and apostilles — adds substantial complexity and cost.
All of this can be avoided with a properly registered LPA.
The Lasting Power of Attorney: The Solution
A Lasting Power of Attorney (LPA) is a legal document that authorises one or more named individuals (attorneys) to make decisions on your behalf if you lose mental capacity. There are two types:
Property and Financial Affairs LPA: Allows attorneys to manage UK bank accounts, pay bills, operate investments, manage property, run businesses, and handle tax affairs. It can also be used while the donor still has capacity (with the donor's permission), which is useful for practical management of UK affairs from overseas.
Health and Welfare LPA: Allows attorneys to make decisions about medical treatment, care arrangements, and living situations. This only becomes operative when the donor lacks mental capacity. It cannot be used while the donor is capable — which distinguishes it from the financial LPA.
The registration requirement: An LPA is useless unless it is registered with the Office of the Public Guardian (OPG). An unregistered LPA cannot be used. The OPG registration process currently takes approximately 20 weeks (as of 2026). You should register your LPA immediately after it is signed — not keep it "in the drawer" for later, by which point it may be too late if capacity is lost suddenly.
Creating an LPA: The Process
Choose your attorneys: Whoever you appoint must be 18 or over, trustworthy, capable of making financial decisions, and ideally UK-based (since they will need to deal with UK institutions on your behalf). You can appoint multiple attorneys to act jointly (all must agree on every decision) or jointly and severally (any one can act independently — more practical for day-to-day management from overseas).
Choose a replacement attorney: If your primary attorney dies, loses capacity, or disclaims the appointment, a replacement attorney can step in automatically.
Complete the LPA forms: The forms (LP1F for financial affairs) can be completed online at the OPG's digital service (lastingpowerofattorney.service.gov.uk) or via a solicitor. A "certificate provider" — usually a solicitor or someone who knows you well but is not a family member — must confirm you understand what you are signing and are acting freely.
Register with the OPG: Submit the completed forms and the £92 fee (per LPA, as of November 2025) to the OPG. Allow 20 weeks. Once registered, the OPG stamps the document. Your attorneys should then be able to use it with UK institutions.
LPAs for Expats: Specific Considerations
Does a UK LPA work overseas?: For UK-based assets, yes — a UK registered LPA is valid for UK bank accounts, UK property, and UK investments. It does not automatically extend to assets in other countries, which typically require local equivalents.
Time to register: The 20-week registration period means that someone who plans to live overseas should register their LPA before they leave, not after they arrive. Once you need it in a hurry, it may be too late.
Who to appoint when you live abroad: For an expat living in Dubai with UK assets, the ideal financial affairs attorney is someone UK-based who can easily deal with UK institutions in person if needed — a sibling or trusted friend still in the UK, or a professional trustee/solicitor as a backup or co-attorney.
Professional attorneys: UK solicitors and trust companies can be appointed as professional attorneys. They charge for acting (typically £100–£300 per hour), but they offer continuity and professionalism that personal attorneys may lack. For complex estates, a professional co-attorney alongside a personal family attorney is a common arrangement.
Overseas Equivalents
For assets held in other countries, a UK LPA has no legal authority. Different countries require different instruments:
Spain: A "poder notarial" (power of attorney) executed before a Spanish notary (or a UK notary with apostille if executed in the UK) is required for Spanish assets. There is no Spanish "lasting" power of attorney concept identical to the UK — Spanish powers of attorney may become invalid on incapacity unless specifically drafted to survive it (poder preventivo). Specialist Spanish legal advice is required.
France: Similar issue. A French mandat de protection future (future protection mandate) is the closest equivalent to an LPA.
UAE: A notarised power of attorney is required for UAE assets. The UAE does not recognise UK LPAs automatically. DIFC-registered wills can include powers of attorney provisions.
Australia: Each Australian state has its own enduring power of attorney legislation. A UK LPA does not automatically apply to Australian bank accounts or superannuation.
The practical implication: for each country where you have significant assets, you should have a local legal instrument equivalent to an LPA, drafted by a qualified local lawyer.
Capacity Planning: Practical Checklist
- Create and register a UK LPA (Property and Financial Affairs and Health and Welfare) — do not delay
- Choose your attorneys carefully: UK-based, trustworthy, capable, willing
- Tell your attorneys where the registered LPA is stored and give them a copy
- Inform your key UK financial institutions that an LPA exists (some banks maintain a record on file)
- Create local equivalent documents in every country where you have significant assets
- Review your LPA every 5 years or after any significant change (marriage, divorce, the death or changed circumstances of an attorney)
- Consider a professional trustee as backup or co-attorney for continuity
Compliance Caveat
The law relating to mental capacity, lasting powers of attorney, and Court of Protection proceedings in England and Wales is governed primarily by the Mental Capacity Act 2005. Registration requirements and fees may change. The rules in other countries regarding foreign powers of attorney differ significantly and require local legal advice. This article is for general information only and does not constitute legal advice. You should consult a qualified solicitor before creating an LPA or making any decisions about capacity planning.
How Global Investments Can Help
As a wealth management firm serving internationally mobile clients, we frequently encounter situations where the absence of a registered LPA causes avoidable disruption and cost. We strongly recommend that all clients — particularly those living abroad with UK financial interests — have an up-to-date, registered LPA in place.
We can connect you with specialist UK solicitors experienced in LPAs for internationally mobile clients, and we can advise on how your LPA should be coordinated with the management of your investment and pension accounts. Contact our team if you would like guidance on this aspect of your financial planning.
This article is for general information only and does not constitute financial, legal or tax advice. Rules, prices and regulations change; verify current requirements with a qualified adviser before acting.