“An EPA or LPA ensures that should you be unable to manage your own affairs, those you appoint can make decisions on your behalf.”
Our rapidly ageing world is making a case for all Hong Kong residents to consider having an Enduring Power of Attorney (EPA) or Lasting Powers of Attorney (LPA) if they are UK Nationals or residents.
Navigating the legal complexities associated with declining mental capacity and protecting one's assets or health can be daunting, so obtaining an EPA or LPA could prove invaluable if ever needed.
Let's explore more and explain everything you need to know about securing your future.
What is a Power of Attorney?
What will happen if, at any point in the future, you're mental capacity reduces and leaves you unable to manage your finances or make important health decisions? Wouldn't it be better if somebody you know well and trust is appointed as your 'attorney' and could take control and make those decisions for you? That's where a legal document called a Power of Attorney comes into its own. It will allow the person you chose to act as your eyes, ears, brain and mouthpiece when unfortunate events occur and your ability to decide for yourself has gone.
Without having such a document, lengthy court proceedings await those you would want to look after your affairs. Banks can sometimes freeze joint bank accounts with spouses, restricting their access to funds.
Discover the Capabilities of a Lasting Power of Attorney & Understand What these Legal Documents can do for you.
ENDURING POWERS OF ATTORNEY
Hong Kong Residents
If you reside in Hong Kong, you can benefit significantly from an Enduring Power of Attorney (EPA) document. An appointed attorney can make decisions on your behalf regarding financial and property affairs when you can no longer do so yourself. Additionally, the attorney can handle legal matters and represent you in court proceedings.
The EPA does not cover medical and health care decisions; this requires a separate document called a "Living Will."
Why should you have an EPA?
Having an Enduring Power of Attorney (EPA) is crucial for Hong Kong residents because it provides peace of mind and ensures that their affairs, financial or legal, are taken care of should they become mentally incapacitated or incapable.
Without an EPA, the family and loved ones may be required to undergo a legal process to attain a guardianship order, which can be costly and time-consuming.
Having an EPA in place can also prevent disputes among family members and ensure that your wishes are carried out according to your instructions.
Furthermore, an EPA grants the power to choose someone who can be trusted to make decisions on your behalf, providing you with consistency and a sense of control and security even under difficult circumstances.
When does the EPA come into effect?
The EPA comes into effect when the donor is mentally incapable of managing their affairs.
A Hong Kong EPA must be registered with the High Court to be legally recognised and accepted. Banks and other Hong Kong institutions have the right not to accept EPAs that haven't previously been registered with the High Court.
To register your EPA, you must complete the prescribed forms and follow the guidelines set out in the Enduring Powers of Attorney (Prescribed Form) Regulation.
The Department of Justice provides a helpful archive on Hong Kong's Enduring Powers of Attorney for more information.
Who can be appointed as an Attorney in Hong Kong?
In Hong Kong, you can appoint any person of sound mind and 18 years old or above as your attorney. However, it would be best if you choose someone you trust and who has the capacity to perform the duties required by the document. You can choose a family member, friend, professional trustee, financial adviser or lawyer to act as your attorney. Remember that the attorney's role is to act in your best interest and make decisions you would make if you were still capable. It is essential to discuss your wishes and expectations with your appointed attorney before drafting the EPA.
How do we ensure an EPA complies with legal requirements?
A few crucial steps must be followed to ensure that an Enduring Power of Attorney (EPA) complies with legal requirements in Hong Kong.
Firstly, the document must be created while you are still mentally capable of making decisions. A Hong Kong doctor is required to assess your medical condition and declare that you are of sound mind.
The EPA must be in writing, and it should outline the powers granted to the appointed attorney, along with any restrictions, limitations, and additional instructions.
In Hong Kong, the EPA must be signed by you (the donor) and two independent adult witnesses.
It must also be certified by a solicitor licensed to practice in Hong Kong, who must sign and date the document.
What actions can the attorney take on my behalf?
Any attorney appointed in a Hong Kong Enduring Power of Attorney (EPA) is given a wide range of powers to perform as part of their role. These powers can be specified in the EPA document and can include the following:
- Manage your finances, such as paying bills, managing bank accounts and investments, and dealing with property sales or purchases.
- Handle legal affairs, execute legal documents, and represent you in court proceedings or negotiations around related legal matters.
- Manage business affairs, such as the day-to-day running of a business, negotiation and signing of business contracts, and making business-related decisions.
EPA’s Limitations
However, the EPA cannot make certain powers or decisions. For example, it cannot create or modify an existing Will, make personal care decisions, or revoke a trust.
It's important to specify the powers granted to the appointed attorney in the EPA document and any constraints or limitations that may apply, as this will minimise potential disputes or misunderstandings that may arise in the future.
Questions?
ENDURING POWERS OF ATTORNEY
UK Residents
Having a Lasting Power of Attorney (LPA) can be crucial for UK expats or anyone residing in Hong Kong with UK assets. An LPA is a legal document that allows you to appoint one or more people to make decisions and act on your behalf if and when mental capacity has been lost. The people you appoint are known as the attorneys. There are two types of LPAs - Property and Affairs LPA and Health and Welfare LPA.
PROPERTY AND AFFAIRS LASTING POWERS OF ATTORNEY (LPA)
A Property and Affairs LPA allows the attorney to decide about the donor's property and financial affairs, including managing bank accounts and paying bills. This type of LPA can be used while the donor still has mental capacity but no longer wishes to make certain decisions themselves or when they lose it.
HEALTH AND WELFARE LPA
On the other hand, a Health and Welfare LPA grants the attorney the authority to make decisions regarding the donor's personal welfare, including medical treatment and where the donor lives. This type of LPA only occurs when the donor lacks mental capacity.
VALIDITY OF LPAS
Creating a UK LPA involves filling out the relevant forms, which can be done online or offline. Once complete, the forms must be registered with the Office of the Public Guardian. Following the correct process is crucial to ensure the LPA is valid.More than 50,000 lasting power of attorney (LPA) applications were rejected by the Office of the Public Guardian (OPG) in 2023-2024 due to errors.
USES OF LPA
LPAs are beneficial in various scenarios, such as if the donor develops a long-term illness or loses their mental capacity. They differ from other legal documents, such as a Will or a trust, as they only apply while the donor is alive and lacks mental capacity.
HOW MUCH DOES IT COST?
Single LPA (UK) |
Any Two Documents Bundled |
Two UK LPA BundleLPA for Health and Welfare decisions and LPA for Property and Affairs decisions |
Hong Kong EPA + Two UK LPAs Bundle |
| HK$ 4,000* | HK$ 6,000* | HK$ 6,000* | HK$ 10,000* (per person) |
Related Costs & Disbursements*
There are certain other costs and disbursements relating to LPA & EPA which are also payable by you; these are:
- UK Lasting Power of Attorney:
- A Registration fee of £82 is payable to the Office of Public Guardian.
- Hong Kong Enduring Powers of Attorney:
- Attending Physician Fees for a Hong Kong EPA are up to HK$ 4,000.
- The legal fees involved in establishing a Hong Kong EPA are HK$ 4,000.
- You must register your HK LPA at the High Court before using it. In 2025, the registration cost was HK$440.
