Why an Enduring Power of Attorney is Essential for Australians Living Abroad

If you’re an Australian living abroad, this blog post is a must-read for you. Today, we’re going to delve into a topic that’s often overlooked but is of paramount importance – the Enduring Power of Attorney (EPOA).

An EPOA is a legal document that allows you to appoint someone to make decisions on your behalf if you’re unable to do so. Unlike a general Power of Attorney, which becomes invalid if you lose mental capacity, an EPOA ‘endures’ even in such circumstances. It’s a safety net that ensures your interests are protected, no matter what life throws at you.

This can be a more complex area of Estate Planning for Australian expats given the often global nature of their personal finances. However, it’s vital to ensure that you’re clear on what applies in each country, and what you need to consider.

Let’s take a world tour and explore how EPOA works in various countries where Australians often reside.

Hong Kong

In Hong Kong, the Enduring Power of Attorney (EPA) is governed by the Enduring Powers of Attorney Ordinance. The EPA allows you to appoint an attorney to manage your financial affairs if you become mentally incapacitated. As an Australian expat in Hong Kong, having an EPA ensures that your assets in the city are well-managed, even if you’re unable to make decisions. It’s important to note that the EPA in Hong Kong only covers financial matters and does not extend to personal and health care decisions. Therefore, it’s crucial to have a comprehensive estate plan that includes other necessary legal documents.

Singapore

Singapore’s Lasting Power of Attorney (LPA) is governed by the Mental Capacity Act. The LPA allows you to appoint one or more persons, known as donees, to make decisions on your behalf regarding personal welfare and property matters. The LPA in Singapore is unique as it covers both personal welfare and property and affairs matters. As an Australian living in Singapore, an LPA can be a vital tool to manage your assets effectively. It’s also worth noting that the LPA must be registered with the Office of the Public Guardian in Singapore before it comes into effect.

China

In China, the Durable Power of Attorney (DPOA) is a relatively new concept and is not as widely recognised as in other countries. However, it’s gaining acceptance as a way to manage one’s affairs in case of incapacity. The DPOA allows you to appoint an agent to handle your affairs if you become incapacitated. As an Australian expat in China, having a DPOA ensures that your interests are protected in this vast and complex country. It’s important to work with a legal professional who is familiar with Chinese law to ensure that your DPOA is set up correctly.

United Kingdom

In the UK, the Lasting Power of Attorney (LPA) is governed by the Mental Capacity Act 2005. There are two types of LPA: Property and Financial Affairs LPA, and Health and Welfare LPA. The Property and Financial Affairs LPA allows you to appoint an attorney to make decisions about your property and finances, while the Health and Welfare LPA covers decisions about your health and personal welfare. As an Australian in the UK, having an LPA can provide you with peace of mind knowing that your affairs will be handled according to your wishes. It’s also important to note that the LPA must be registered with the Office of the Public Guardian in England and Wales before it can be used.

America

In the United States, the Durable Power of Attorney (DPOA) is governed by state laws, so the specifics can vary from one state to another. Generally, the DPOA allows you to appoint an agent, also known as an attorney-in-fact, to manage your financial affairs if you become incapacitated. As an Australian expat in America, a DPOA can be a crucial tool to ensure your assets are managed effectively. It’s also worth noting that some states require the DPOA to be notarized or witnessed, so it’s important to understand the specific requirements in the state where you’re living.

The Process of Setting Up an EPOA

Setting up an EPOA involves several steps. First, you need to decide who you want to appoint as your attorney. This should be someone you trust and who understands your wishes.

Next, you need to create the EPOA document. This should be done with the help of a legal professional to ensure that the document complies with the laws of the respective country. The document should clearly outline the powers you’re granting to your attorney.

Once the document is created, it needs to be signed and witnessed according to the legal requirements of the respective country. In some countries, the document may also need to be registered with a government body.

Remember, setting up an EPOA is not a one-size-fits-all process. The requirements can vary significantly from one country to another, so it’s crucial to seek legal advice in the country where you’re setting up the EPOA. It’s also important to understand that you may want to set up an EPOA in each country that you hold assets to avoid any issues, particularly if your country of residence is not part of the Commonwealth.

Conclusion

In conclusion, an EPOA is an essential tool for Australians living abroad. It provides a safety net that ensures your interests are protected, no matter what happens. Whether you’re in Hong Kong, Singapore, China, the UK, or America, having an EPOA (or its equivalent) can give you peace of mind and ensure your assets are managed effectively.

If you’re an Australian expat and haven’t set up an EPOA yet, now is the time to act. Seek estate planning advice to understand how you can protect your global financials. Remember, it’s not just about planning for the worst – it’s about ensuring that your wishes are respected, no matter what life throws at you.

Ally Wealth Management is the trusted ally in finance for Australians at home and across the globe. As both Australian expats and residents, the founders of Ally have a unique understanding of the common personal financial challenges faced.

Book your complimentary appointment with our team at Ally Wealth Management to discuss how we can help you to achieve your financial goals.

Ally Wealth Management Pty Ltd is a Corporate Authorised Representative of Sentry Advice Pty Ltd ABN 77 103 642 888. Sentry Advice holds an Australian Financial Services Licence (AFSL) No. 227 748.

General Advice Warning: The information contained herein is of a general nature only and does not constitute personal advice. You should not act on any recommendation without considering your personal needs, circumstances, and objectives. We recommend you obtain professional financial advice specific to your circumstances.