A common but little-known issue involving Lasting Power of Attorney (LPA) arrangements is emerging as a significant obstacle for families managing overseas investments, experts warn. Although an LPA registered in England and Wales grants an attorney authority to manage a person’s financial affairs domestically, it does not automatically extend to assets held abroad. This gap can leave attorneys unable to access or sell foreign shares precisely when funds are urgently needed for care costs or household expenses.

The problem often arises with investments originally purchased in British or Irish companies that, through mergers, takeovers, or stock market changes, have ended up being administered by institutions outside the UK. Leading probate research firm Finders International estimates that approximately 15% of their cases involve difficulties linked to overseas holdings. Other firms have reported families encountering similar barriers when attempting to manage such assets.

Louise Levene, asset services manager at Finders International, explains that while a UK LPA is valid domestically, many foreign banks, companies, or share registrars either do not recognize it or require additional legal processes to accept it. “In some countries it might not be recognised at all,” she said. Because many people acquire overseas shares through inheritance or employee schemes without realizing their international nature, the limitations of their LPA only become apparent when the shareholder has lost capacity and their attorney needs to access money.

Levene advises people with international investments to identify where these assets are held and understand the procedures their attorney would face in managing them in advance of any emergency. She recommends compiling comprehensive details about the investments—including account numbers, shareholder references, and registrar contacts—and considering appointing local authority or lawyers familiar with the jurisdiction involved. Keeping such information updated ensures that additional legal costs and delays can be minimized if incapacity occurs.

An LPA ceases on the individual’s death, at which point executors may need to obtain overseas probate recognition or engage specialist help to transfer or sell foreign investments. This can add further complexity and expense for families during an already challenging time.

A cautionary example underscores the risks involved. Margaret Bennett held a US investment account worth £150,000, but when she lost mental capacity, her husband Peter, acting under an LPA, was unable to access the funds. The US company insisted on dealing directly with Margaret, and only after her death and the issuance of a local court order could the funds be accessed—an ordeal that incurred substantial legal fees.

Experts urge families to have frank conversations about the location and nature of all investments, domestic or overseas, while capacity remains intact to avoid similar difficulties.